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Sidings can be used for many things:

Spur sidings (switch on one end bumper at the other) can be used for parking additional train cars and locomotives or to allow a train to service an Industry off the main line.

Passing sidings (with switches at both ends) can allow two trains on your main line to pass each other.

A combination of these is typically referred to as a Yard and can be used to store and assemble/disassemble Consists (the cars and Locos that make up a train.

If you are simultaneously running more than one conventional loco (throttle controls provided by handles on transformer(s)), the sidings would need to have the center rail electrically isolated from each other and  from the main line and each controlled independently.  If you're only planning to run one conventional loco on connected track, or use Lion Chief Remote control, then all track sections may be all interconnected electrically.

Of course there's a bit more to the electrical part, but that's an answer to your question.

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