Bitcoin layer 2s are one of the hottest crypto trends in 2024. These solutions bring scalability and versatility to Bitcoin, offering features beyond simple transactions.
What is Rootstock
Rootstock is a Bitcoin sidechain that works alongside Bitcoin, adding features like smart contracts. It uses a '2-way peg' to connect with Bitcoin, allowing movement of Bitcoin to and from Rootstock while maintaining value and security. The $RBTC token powers the Rootstock network, facilitating interactions with smart contracts and services.
Rootstock Features
Rootstock employs merged mining with Bitcoin, enabling miners to mine two cryptos simultaneously without extra computing power. Additionally, Rootstock is compatible with the Ethereum Virtual Machine (EVM), allowing the creation of smart contracts and expanding Bitcoin’s functionality. Rootstock supports DeFi apps including lending, borrowing, and stablecoins.
RIF and Sovryn
Rootstock supports two key services: RIF and Sovryn. RIF (Rootstock Infrastructure Framework) provides tools for developers to easily build applications on Rootstock. Sovryn offers DeFi functions based on Bitcoin such as lending, trading, and yield farming, all in a decentralized manner. The SOV token enables users to earn revenue and participate in governance.
Rootstock is an essential solution among Bitcoin layer 2s. It allows users to enjoy Bitcoin’s security while utilizing complex applications such as DeFi and smart contracts. With its features and capabilities, Rootstock is poised to significantly expand Bitcoin’s potential in the near future.
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