tl;dr
- Bitcoin Layer 2 solutions like Lightning Network and Rootstock enhance Bitcoin's capabilities.
- Rootstock is a sidechain for Bitcoin that supports smart contracts and uses a forked version of the Ethereum Virtual Machine.
- RBTC is the native currency of Rootstock, pegged 1:1 with Bitcoin.
- Rootstock allows developers to create smart contracts for various dApps on top of Bitcoin's infrastructure.
An Introduction to Bitcoin Layer 2s
Adding functionalities to Bitcoin by introducing an additional layer isn’t a new concept.
Developed in 2012-2013, Colored Coins represented an early attempt to expand Bitcoin's capabilities. However, their reliance on extra transaction data made them cumbersome and limited adoption.
Bitcoin's Layer 2 solutions like the Lightning Network and Rootstock have since evolved the concept. L2 protocols operate off-chain, enhancing transaction speed and reducing fees while maintaining security from the Bitcoin blockchain. This evolution reflects a shift towards more scalable and user-friendly solutions, facilitating broader acceptance and utilization of Bitcoin.
What is the Rootstock Blockchain?
The Rootstock blockchain, also known as RSK, is a sidechain for Bitcoin that supports smart contracts. It utilizes a forked version of the Ethereum Virtual Machine or EVM called the Rootstock Virtual Machine or RVM. This compatibility allows RSK to support Ethereum smart contracts and the associated deployment and interaction tools.
RBTC, the native currency of Rootstock, serves as gas for transaction execution, pegged 1:1 with Bitcoin. This ensures there are exactly 21 million RBTC, mirroring Bitcoin's total supply. The Powpeg mechanism facilitates the transfer of bitcoins between the Bitcoin and Rootstock blockchains.
Rootstock combines elements from QixCoin and Ethereum. QixCoin introduced the concept of transaction gas, while RSK inherits Ethereum's account format, VM, and web3 interface, ensuring compatibility with Ethereum compilers, tools, and dApps. Despite improvements like near-instant confirmations and enhanced payment experiences, RSK remains proof-of-work-based. It supports SHA-256D merged mining with Bitcoin for heightened security.
How Does Rootstock Work?
Rootstock operates as a side chain to Bitcoin, with its technology stack built entirely on top of Bitcoin's infrastructure. This includes Rootstock smart contracts and the Rootstock Infrastructure Framework. The connection to Bitcoin extends to mining blocks every 10 minutes, involving the transfer and creation of new bitcoins.
As a side chain, Rootstock is linked to Bitcoin's common currency and mining process. However, it differs in block creation frequency, generating blocks every 30 seconds to facilitate smart contract execution without minting new coins but earning rewards through merged mining.
Rootstock maintains compatibility with Ethereum's EVM for executing smart contracts and exposes an external API (RPC) similar to Ethereum. Despite EVM compatibility, Rootstock has variances in checksum calculations, derivation paths, and gas calculations compared to Ethereum.
Rootstock leverages Bitcoin's security and infrastructure while providing faster block confirmations for smart contract execution. The side-chain also offers compatibility with Ethereum's development ecosystem. This integration allows Rootstock to combine the strengths of Bitcoin and Ethereum, providing a robust platform for dApps and smart contracts.
What is Rootstock Smart Bitcoin aka RBTC
Rootstock Smart Bitcoin or RBTC is the native currency of the Rootstock blockchain, serving as gas for executing smart contracts or paying transaction fees. RBTC maintains a 1:1 peg to Bitcoin, meaning one RBTC is equivalent in value to one BTC.
Users can acquire RBTC through various methods. These methods include bridging BTC to Rootstock, mining RBTC within the Rootstock ecosystem, or purchasing it from supported exchanges.
How the PoW-Peg System Works
The PowPeg system is a two-way peg mechanism that secures locked bitcoins with Bitcoin's hashrate, ensuring consensus and security. This system, particularly in Rootstock, enhances security through innovative methods.
Rootstock's PowPeg employs specialized hardware security devices called PowHSMs. These PowHSMs incorporate tamper-proof secure elements for enhanced resistance against malicious attacks.
Each PowHSM operates an RSK node in SPV mode, where signatures are authorized only through cumulative proof of work. Additionally, PowHSMs support attestation, verifying the firmware running on the hardware. This verification is achieved through a signed message, providing undeniable proof that PowPeg keys are stored in genuine hardware devices with recognized firmware versions.
RSK Ecosystem
Rootstock's dApp ecosystem is expanding with DEXs, stablecoins, and even an RSK version of DAI. As interest in Bitcoin L2 solutions grows, more dApps are expected to join Rootstock, leveraging its compatibility with Bitcoin and Ethereum to developers and users within its ecosystem
RSK vs. Bitcoin
Bitcoin and RSK serve different purposes within the blockchain ecosystem. Bitcoin is primarily a digital currency focused on secure peer-to-peer payments, renowned for its decentralization and security. On the other hand, RSK operates as a platform built on top of Bitcoin, serving as a sidechain that enables smart contracts and faster transaction speeds.
Unlike Bitcoin, RSK is not directly positioned as a currency but rather as a platform for dApps and smart contract development. It is important to note that RSK uses a bridged version of BTC called RBTC for gas and smart contract interactions.
One of the key differences between Bitcoin and RSK is their ability to handle smart contracts. While Bitcoin lacks this functionality, RSK allows developers to create smart contracts for various applications, including DeFi. Additionally, RSK offers faster transaction speeds compared to Bitcoin, processing around 10-20 transactions per second compared to Bitcoin's slower rate of around 7 transactions per second.
Both Bitcoin and RSK rely on Proof-of-Work for security, but RSK enhances its security by leveraging Bitcoin's mining power through a process known as "merged mining." This approach ensures that RSK benefits from Bitcoin's robust security infrastructure while expanding the capabilities of the Bitcoin network through smart contracts and faster transaction processing.
Final Thoughts
Rootstock's future is bright due to its unique position as a platform enhancing Bitcoin's capabilities with smart contracts and faster transactions. As interest in Bitcoin Layer 2 solutions grows, Rootstock's compatibility with Bitcoin and Ethereum, positions it as a key player in the blockchain space.
With ongoing developments in scalability, security, and DeFi applications, Rootstock is poised to contribute significantly to the evolution of blockchain technology.
FAQ
Does Rootstock have a token?
Rootstock utilizes RBTC or Rootstock Smart Bitcoin as its native currency, which is pegged 1:1 to BTC. RBTC is used to pay transaction fees and for executing smart contracts on the Rootstock blockchain.
What is the block time for Rootstock?
Rootstock creates new blocks approximately every 33 seconds, which is notably faster than Bitcoin's 10-minute block time. Additionally, it has a transaction processing capacity of about 10-20 transactions per second or tps.
Where can I buy Rootstock crypto?
You can buy Rootstock's RBTC cryptocurrency on Sovryn DEX. Alternatively, you can mine RBTC within the Rootstock ecosystem, or bridge BTC, which will automatically convert to RBTC on the Rootstock platform.
What is smart Bitcoin?
Smart Bitcoin can refer to RBTC, or Rootstock Smart Bitcoin, which is the native cryptocurrency of the Rootstock blockchain.
