Amidst the meteoric growth of DeFi infrastructure on Ethereum, the RSK smart contract blockchain is enabling the development of faster, easier, and highly scalable dApps on top of the Bitcoin network.
RSK Positions Itself As A Leading L2 Platform On Bitcoin Network
The rapid appreciation in the value of cryptocurrencies has led to rampant speculation, with hundreds of DeFi applications flooding blockchain networks. Ethereum may currently hold the lion’s share of DeFi, but BTC network-based smart contracts like RSK now facilitate the growing demand for DeFi on the Bitcoin network.
Launched in January 2018, RSK is the first smart contract platform secured by the Bitcoin network. The platform recently achieved 72% hash power in April 2021, establishing itself as one of the best Layer-2 platforms on the Bitcoin network.
Combining the best aspects of Bitcoin and Ethereum in a single platform, the RSK network recently achieved another milestone, exceeding Bitcoin-based Lighting Network in total value locked (TVL). RSK has achieved a TVL of 1,445 BTC, over 259,000 smart contract transactions, and more than 50,000 active users. The exceptional growth in RSK’s total value locked (TVL) highlights the surging demand for DeFi on the BTC network.
The two most significant catalysts behind the RSK smart contract network’s hyper-growth are security and stability. The RSK network is covered by almost 40% of the computing power of the Bitcoin network and uses the same hashing mechanism as Bitcoin, placing it among the most secure decentralized networks. Besides, RSK, similar to the Ethereum blockchain, natively supports Solidity Smart Contracts and APIs, making it highly compatible and easy for developers to port existing dApps into the network.
The RSK infrastructure is fully interoperable, enabling seamless movement of ERC-20 tokens from ETH to Bitcoin-powered RSK smart contracts. In addition, the platform recently integrated support for DAI, enabling dApps to bridge to the Ethereum network and leverage its network effects and liquidity while benefiting from RSK’s immense scalability and low costs.
As Bitcoin witnesses widespread acceptance in real-world cases, several countries are taking significant steps in regulating and adopting it as a legal tender. With El Salvador becoming the first country to classify Bitcoin as a legal currency, more nations are considering the benefits of digital assets for their economies. This means that the demand for DeFi on the Bitcoin network could grow manifold as its usage climbs.
RSK’s suite of protocols has overcome many obstacles that prevent decentralized blockchain networks from reaching mass adoption. By positioning itself as one of the best smart contract platforms on the Bitcoin network, it is one of the most preferred choices for developers seeking security, stability, interoperability, and affordable transaction fees.
Furthermore, RSK uses DECOR+ consensus, which allows merge-mining with BTC or any other shared blockchain. With merge-mining, miners can simultaneously mine on two or more blockchains using the same hardware. As the value of Bitcoin soars, RSK has the potential to help countries like El Salvador generate new revenue streams to fulfill their vision of reduced dependence on other currencies to facilitate trade and fight imbalances.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.