What is Rootstock?

Bitcoin Layer 2’s are one of the big stories so far in 2024. It started with the Bitcoin ETF approval and then the Bitcoin halving. Institutions are definitely here now. And with that, people are looking for ways to use Bitcoin more effectively. Enter the Layer 2 argument. Stacks is the biggest and best known. But it’s not the only one with history and products people use. The best Bitcoin Layer 2 you don’t know about is Rootstock.

So let’s see what Rootstock is about.

What is Rootstock?

Rootstock uses merged mining to mine blocks with the same tech and PoW consensus mechanism that Bitcoin uses. Rootstock operates as a sidechain. A couple of sidechains you already know about are Polygon and the Ronin chain for running Axie Infinity.

Sidechains work via 2-way pegs. That’s 2 places in the Rootstock chain that link and intersect with the Bitcoin blockchain. Right now, Rootstock has 2,897 BTC locked in this peg. That alone is worth $201 million. That doesn’t even include the services Rootstock and its ecosystem offers. Notice below the 2 different places the chains intersect. That’s a 2-way peg.

Rootstock’s Main Services

Rootstock creates both Bitcoin-based smart contracts and EVM-compatible smart contracts. It’s smart contract functionality with faster transactions that Rootstock brings to Bitcoin.

RIF

Rootstock’s main service is RIF. The Rootstock Infrastructure Framework. With it, you can build and run DeFi apps that have both the Bitcoin and EVM compatibility. There’s an RIF token and supporting wallet, too.

MoneyOnChain

MoneyOnChain collateralizes your Bitcoin either for borrowing or to create stablecoins. DOC or Dollar on Chain is the Bitcoin stablecoin using RIF. They also offer the BPRO token that lets you earn interest on your Bitcoin holdings without giving up your keys.

Sovryn

Sovryn offers Bitcoin rollups and lots of DeFi options like exchanges and swaps. Lending and Earning on your Bitcoin are other options available on this platform. Sovryn has already traded almost $2 billion in Spot trading volume. It’s probably the biggest DEX you’ve never heard of.

Conclusion

We are just scratching the surface of all the things Rootstock is involved in with Bitcoin. But we know you are looking for Bitcoin Layer 2 options aside from Stacks. And since 2017, Rootstock has been quietly building. They have stablecoins backed by Bitcoin as well as a huge selection of DeFi options. DeFi on Bitcoin is going to move forward with lots of momentum in the next few years. And Rootstock is going to help tell the story.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.

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