Rootstock Platform (RSK) is a second-layer platform that aims to resolve some limitations of Bitcoin’s blockchain. Some developers launched the platform in 2014 to boost Bitcoin’s transaction times and provide smart contracts.
RSK is a platform that operates alongside the Bitcoin blockchain. In this article, we will make a review about this proyect.
How Rootstock Works?
When someone transfers bitcoin (BTC) to Rootstock, the transferred BTC becomes an RBTC. This means it is a smart contract-enabled bitcoin. Furthermore, the user can transfer the RBTC back to the Bitcoin blockchain for the regular Rootstock and Bitcoin transaction fees at any time.
Although Bitcoin is the first known blockchain platform, issues such as network congestion and long transaction confirmation times became a limitation. However, RSK addresses the challenge by adding smart contracts on a sidechain.
The Bitcoin hashrate that is merge mining the @RSKsmart blockchain dropped from 55% to 42% during 2022. (https://t.co/1CqEJ4o92h)
The amount of BTC pegged into rootstock increased from 2,520 to 3,415. (https://t.co/MgPzrAfYdh)
— Jameson Lopp (@lopp) December 19, 2022
Smart contracts are simple to understand. You can call them a program written into a blockchain which executes or carries out the terms of an agreement between two entities. Such an automated procedure is important because it cuts down the need for trust in an agreement.
Deep Dive Into Rootstock
Let’s give a detailed explanation. The capacity of each block on the Bitcoin blockchain is one megabyte, therefore adding a smart contract to a block limits its ability to store transaction data and significantly slows down the network. The Bitcoin blockchain cannot accept new features or additions without major changes.
Earn income through #DeFi
Rootstock's goal is to provide a secure smart-contract platform with benefits to the #Bitcoin & its community through protocols such as the Money on Chain #MOC
Holders of #Bitcoin can now enjoy benefits.#Protocol #smartcontracts #blockchain #RBTC pic.twitter.com/EXwcIpozyZ
— Iam😎 ™ (@Iam_ogomzz) December 19, 2022
A sidechain such as Rootstock improves scalability of the primary blockchain by enabling additional tasks to be completed on a secondary blockchain and subsequently acknowledged by the primary blockchain.
Bitcoin blockchain takes up to 10 minutes to verify a transaction due to the processing time and power required to open a new block. But, Rootstock enable the primary chain to concentrate on mining and validating as it performs additional activities to speed up transaction times.
So, block confirmation in RSK takes around 34 seconds for block confirmation. This is less than it does on Bitcoin. So, exchanging and sending crypto occurs in considerably less time and for less money. Transaction times are also shortened and the time between the commencement of a transfer and its validation is reduced.
An amount of bitcoin is locked on mainchain and a smart contract system releases the exact amount as RBTC on Rootstock. It can be pegged back out at any time.
— Professor OneDigit (@onedigitmoney) December 20, 2022
Similarly, RSK possesses every feature of the Bitcoin network, including its high level of security and stability, decentralization, and transparency. Each implementation developed in the RSK network is permanently stored in the Bitcoin network. To put it another way, every activity carried out within RSK originates from the Bitcoin network, is carried out there, and then is recorded in the Bitcoin blockchain.
How Does RSK Differ From Bitcoin?
RSK, in contrast to Bitcoin, is not a cryptocurrency and is not intended to be used as a form of payment. Instead, it is a background layer that uses merged mining to validate transactions considerably faster. Blocks are verified on its chain before being sent to Bitcoin’s chain.
Using the Bitcoin blockchain, RSK enables Dapps developers to build their own DeFi protocols, NFTs, etc. Crypto transactions are paid to miners in exchange for using their equipment to verify transactions and create new blocks. RSK’s creative strategy attempts to reduce costs, which have increased significantly since the introduction of Bitcoin and Ethereum.
Rootstock also places huge emphasis on security. For instance, it makes use of financial incentives to entice programmers, hackers, and security experts to find weaknesses so the system can increase overall security for stakeholders.
and rootstock protocols such as money on chain or tropykus allow us to make defi on btc taking advantage of merge mining.
— Sebastián Fernández (@elsebasfer1990) December 19, 2022
Why is Rootstock Important to Bitcoin?
RSK will no doubt enhance the Bitcoin ecosystem. One of the main problems that cryptocurrencies like Bitcoin encounter is scalability. However, RSK seeks to address that without compromising decentralization or taking up storage space. Rootstock can scale up to 300 transactions per second. This makes Bitcoin faster.
RSK’s services are intended to improve transactability. Unlike Bitcoin where transactions take substantially longer, RSK can enable immediate payments using its innovative protocols like DECOR and GHOST. This is no doubt a huge advantage.
Finally, RSK uses a merged mining Proof-of-Work (PoW) consensus process. This enables the same miners that secure the Bitcoin network to also help secure RSK. This is a reason why Bitcoin miners are actively backing it.
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