Rootstock (RSK) is a platform for decentralized applications and smart contracts on Bitcoin. It runs as a sidechain for the Bitcoin Network to expand its capabilities.
By its original design, the Bitcoin network’s basic feature is to allow users to send and receive coins from one account to another. The protocol was written in the programming language called Bitcoin Script, which is a basic language with few use cases. Because Bitcoin was created as digital money, Script’s use cases are limited to executing transactions and implementing simple logic and conditions, for example, multi-signature transactions and time locks.
In 2015, the Ethereum blockchain was launched introducing new use cases for modern blockchains beyond coin transfers. Ethereum is written in Solidity, a Turing-complete language, meaning it performs complex computations and allows developers to build any kind of application like decentralized games, lending protocols, social media platforms, NFT marketplaces, and more.
Different teams started working on solutions to bring complex functionalities to Bitcoin, too. Rootstock is among the pioneers in this aspect. The project published its whitepaper in 2015 and launched its mainnet in January 2018 as the first sidechain for the Bitcoin Network.
Rootstock Sidechain - How Does It Work?
Sidechains are independent blockchains connected to parent blockchains via two-way pegs. Each sidechain has its own operational characteristics, mechanisms and purpose. Rootstock was created to bring the flexibility of Ethereum smart contracts to Bitcoin and provide fast transactions. The protocol uses Solidity and is compatible with Ethereum, which means developers can port their applications to the RSK blockchain, send crypto from one chain to another, and use tools developed on RSK on Ethereum.
Rootstock is a separate blockchain, but it doesn’t have native cryptocurrency. Instead, the protocol uses Bitcoin to pay miners for validating transactions and processing contracts. Through a two-way peg, the RSK chain allows the transfer from the parent chain to Rootstock and the other way around. When Bitcoins are moved to RSK, they are converted into RBTC representing the same amount of Bitcoin.
Rootstock features. Source: rootstock.io
Relying on Bitcoin’s Proof-of-Work mechanism, Rootstock offers miners to merge mine the Bitcoin and RSK chains simultaneously and receive rewards in both BTC and RBTC. Rootstock’s technological solutions, including parallel transaction processing and smaller block sizes, improve Bitcoin’s scalability and reduce gas costs. While the average block confirmation takes around 10 minutes on the Bitcoin network, it takes just 30 seconds on RSK. Rootstock can execute 300 transactions per second compared to Bitcoin’s 7, with lower costs.
In 2019, the project launched RIF (Rootstock Infrastructure Framework), a set of open-source tools and technologies for building DeFi apps on Bitcoin using Rootstock. The RIF ecosystem features its native token, RIF, which is used for payments and governance.
The Rootstock Team
Behind Rootstock’s development is RootstockLabs (formerly known as IOV Labs), founded in 2017 by Argentinian engineers and entrepreneurs. The project’s co-founders include Chairman Diego Gutierrez, Chief Scientist Sergio Demian Lerner, and Product Director Adrian Eidelman. The CEO of the company is Daniel Fogg, a serial entrepreneur and startup operator. Rootstock Labs is a fully remote company with more than 140 team members across various countries.
Rootstock’s State in 2024
As of September 2024, Rootstock is among the top 3 Bitcoin sidechains with over $167M Total Value Locked in it. Recently, the project launched its DAO (Decentralized Autonomous Organization), the Rootstock Collective, enabling decentralized governance. RIF token holders can stake their tokens to submit protocol proposals and vote.
Currently, there are 21 apps operating on the RSK blockchain, including the stablecoin protocol MoneyOnChain, the Bitcoin trading and lending platform Sovryn, the decentralized exchange Uniswap V3, and others. Rootstock’s roadmap includes several upgrades, the nearest of which is the Lovell Network Upgrade, aimed at improving the platform’s performance, security, and compatibility with Ethereum.
Anahit Avetisyan
Author
Web3 writer and crypto HODLer with a keen interest in market trends and recent technologies.
