Editor | Callum@Web3CN.Pro
Table of contents
1. Project Introduction
2. Project Vision
3. Project Architecture
RSK RIF OS
IV. Development History
5. Team Background
VI. Financing Information
VII. Development Achievements
Ecological Construction Community Status
8. Economic Model
RBTC $RIF
IX. Advantages and risks
1. Project Introduction
The Rootstock (RSK) blockchain is a scaling solution for the Bitcoin network, which was launched on the mainnet in January 2018, bringing smart contract capabilities to the Bitcoin ecosystem. Transactions on RSK can be confirmed, aggregated, and then sent to Bitcoin's base layer for final settlement, increasing Bitcoin's throughput and thus expanding the network's ability to carry more users, applications, and transactions.
As the first EVM-compatible sidechain on the Bitcoin network, it is a smart contract platform that allows developers to use Ethereum’s language to build dApps and smart contracts. RSK enables developers to build their DeFi protocols and integrate them with the Bitcoin ecosystem.
Overall, the RSK Network improves Bitcoin in three areas: scalability, instant settlement, and smart contracts.
2. Project Vision
Rootstock was originally founded with the goal of building a freer and fairer global financial system based on Bitcoin. Through merged mining, a built-in two-way peg protocol, and smart contract capabilities, Rootstock brings the benefits of decentralized applications to the Bitcoin ecosystem.
Aims to address Ethereum's shortcomings by leveraging Bitcoin's unparalleled stability, security, and economic strength. By porting its smart contracts from Ethereum, RSK makes all Ethereum applications compatible with the Bitcoin blockchain. According to official data, RSK can provide approximately 10 times faster transaction speeds and 50 times cheaper gas fees than Ethereum.
3. Project Architecture RSK
1. Merged Mining
One of the highlights of Rootstock is merged mining, which means that Bitcoin miners can mine Bitcoin and RSK blocks at the same time, allowing developers to obtain better returns.
The RSK blockchain uses the same Proof of Work (PoW) consensus algorithm as Bitcoin, except that miners can generate blocks significantly faster than the Bitcoin base layer. Since both blockchains use the same consensus, miners can perform merged mining and mine both the Bitcoin and RSK blockchains at the same time. Bitcoin and RSK consume the same mining power, so miners can contribute their power to mining blocks on RSK. Ultimately, merged mining can increase profitability for miners without requiring additional resources.
Merged mining allows RSK to verify transactions, create blocks and send them to Bitcoin. Users can rest assured that the mining process is safe as RSK smart contracts benefit from the proven security of the Bitcoin blockchain.
2.Powpeg
Powpeg is a two-way bridge for transferring Bitcoin into and out of the RSK blockchain, which is implemented via RSK’s asset smartBTC (RBTC).
Technically, the RSK platform does not have its own native Gas token. Instead, RSK uses smartBTC (RBTC), which is issued at a 1:1 ratio with BTC locked in Bitcoin. RBTC will always have the same value as BTC and is used to pay transaction fees on RSK.
Bridging funds between RSK and Bitcoin is controlled by 2 main mechanisms: the Treasury and the Smart Contract. The process of transferring Bitcoin to RSK is called "pegging" and requires the user to lock a certain amount of BTC into the Treasury on the Bitcoin network. This makes it possible to unlock the corresponding amount of BTC on RSK. Conversely, transferring BTC from RSK (transfer out) back to the Bitcoin network requires the user to send a certain amount of RBTC to the Smart Contract on RSK. This subsequently unlocks the corresponding amount of BTC from the Bitcoin Treasury.
RSK achieves two-way conversion of funds through a two-way anchor with Bitcoin, without any additional fees, and also reduces transaction costs.
3. RSK Virtual Machine (RVM)
One of the advantageous components of RSK is its interoperability with Ethereum smart contracts. The RSK Virtual Machine (RVM) is based on the Ethereum Virtual Machine, allowing Ethereum smart contracts to be executed on RSK. Developers can seamlessly use the same code, tools, and libraries when building RSK applications. In turn, this provides the Ethereum community with a cheaper and faster alternative to interact with their favorite dApps. This means that RSK developers can code in Solidity, the same smart contract programming language used on Ethereum.
RIF OS
RIF OS (Root Infrastructure Framework Open Standard) is a set of open infrastructure architecture standards built on Rootstock. As an infrastructure, it provides blockchain infrastructure and services for developers. The RIF ecosystem includes a series of products, including DeFi, storage, domain name services, payment solutions, etc.
RIF OS is a protocol and interface built on RSK. It is actually an off-chain development stack that aims to solve the barriers that prevent developers from adopting blockchain technology and promote the development of a fair market for decentralized infrastructure services. It provides open and decentralized tools and technologies. With RIF, developers can quickly and easily create scalable DeFi products.
RIF OS main protocols:
RIF Directory: Name service protocol, supporting name manipulation and secondary markets. RIF Storage: Decentralized redundant storage access protocol for data. RIF Payments: A protocol to access any off-chain payment network, especially payment channel networks. RIF Secure Communication: Node discovery protocol for authenticated and encrypted communication. RIF Data Gateway: Oracle protocol for accessing external data feeds. RIF Browser: Browse services registered on each RIF OS protocol.
In the entire architectural relationship, BTC stores value for the first layer, the Rootstock smart contract network executes for the second layer, and the RIF OS protocol provides infrastructure services for the third layer.
Compared with other public chains, RSK does not need to rebuild the security architecture. Its underlying layer is the Bitcoin main chain, and its token is not on the chain, but Bitcoin, which also avoids smart contract vulnerabilities and is therefore more secure. In addition, RSK is loosely coupled with the Bitcoin main chain and does not need to change the Bitcoin underlying layer. This layering is more conducive to system maintenance.
IV. Development History
At the end of 2015, RSK released a technical white paper, positioning itself as a Bitcoin sidechain aimed at improving the Bitcoin ecosystem.
In early 2016, RSK Labs (now IOV Labs) was founded.
In January 2018, the RSK mainnet was launched, realizing functions such as normal operation of the blockchain, two-way anchoring to Bitcoin, joint mining, transaction transfer, and smart contract deployment.
In November 2018, RIF Labs released RIF OS through the RSK smart contract platform, and RSK merged with RIF Labs. The plan is to expand the RSK protocol beyond support for Bitcoin and Ethereum networks and add various P2P functions.
In May 2019, the second protocol of RIF core components, Lumino Network, part of the RIF payment protocol, was released. At the same time, RIF Labs was renamed IOV Labs to distinguish the organization (IOV), platform (RSK, RIF) and the services developed.
In February 2023, IOVLabs released the RIF Flyover protocol to promote BTC transfers on the Bitcoin mainnet and RSK sidechain. In May, IOVLabs launched a $2.5 million funding program to support the adoption of Rootstock.
There are currently over 11 million transactions on the RSK network, with block height 5,499,303 and close to 190,000 wallet addresses.
5. Team Background Diego Zaldivar Co-founder and CEO
Diego Zaldivar was previously the founder of the financial lending company Koibanx and has extensive experience in financial and Internet product development.
Ruben Altman Co-founder
Co-founder of the Argentinian Bitcoin community and Latin Bitcoin NGO BitcoinLatam
SergioDemian Lerner Co-founder and Chief Scientist
I have been working at RSK lab since November 2015. Previously, I was a security auditor at the cryptocurrency computing security company Coinspect and a technical consultant at the cryptocurrency development software factory CoinFabrik.
Adrián Eidelman Co-founder and CTO
Former founder of a software development company specializing in network cloud solutions.
VI. Financing Information
According to public data, RSK Labs has raised 9 rounds of funding, totaling $7.3 million. Investors include some corporate investors such as Bitcoin Mainland, Coinsilium, DCG, as well as individual investors such as Decentral and Jaxx CEO Anthony Di Iorio.
VII. Development Achievements Ecological Construction
RSK aims to support an inclusive and accessible financial system on the world's leading blockchain, Bitcoin. Through RVM, developers can create new dApps or continue to build on top of existing applications on Ethereum.
At present, the more famous projects on the RSK network include:
RSK DeFi Apps Sovryn — a non-custodial smart contract platform for Bitcoin lending and margin trading. RSK Swap — a decentralized exchange on RSK, derived from Ethereum’s Uniswap protocol. Tropykus — a digital savings protocol that removes many of the barriers and limitations present in traditional banking. RSK Stablecoin Dollar on Chain (DoC) — a token pegged 1:1 to the US dollar and collateralized by Bitcoin as a cryptocurrency. BRZ Token — a multi-chain stablecoin pegged to the Brazilian Real. RSK Dai (rDai) — an alternative to the Dai stablecoin on Ethereum. RSK Wallets Beexo — a Bitcoin wallet that includes a RIF (RSK Infrastructure Framework) relay. MetaMask — a browser extension and mobile wallet. Ledger — a hardware wallet for secure storage of digital assets off-chain. RSK Bridge Powpeg — RSK’s two-way peg is used to complete conversions between BTC and R-BTC. RSK ETH — A token bridge for moving ERC20 tokens between Ethereum and RSK. RSK BSC — A cross-chain bridge created by Sovryn for transferring digital assets between Binance Smart Chain and RSK. Community Status
Currently, RSK has 24,000 followers on Twitter, RIF OF has 67,000 followers on Twitter, and the TG group has 2,400 members. The daily online rate is about 5.4, and the overall activity is relatively low.
8. Economic Model RBTC
RBTC is the token in the RSK smart blockchain, used to pay transaction fees, and its function is similar to ETH in the Ethereum network. 21 million RBTC are issued in the RSK network. And locked in the address 0x0000000000000000000000000000000000001000006. There are currently about 20999519 RBTC in the address, which means that about 500 RBTC are circulating in the RSK network, which shows that the utilization rate of the RSK network is still very low.
RBTC is bidirectionally pegged to BTC in the Bitcoin network. In practice, when BTC is exchanged for RBTC, some BTC is locked in the Bitcoin network, and the same amount of RBTC is released in the RSK network. When RBTC needs to be converted back to BTC, RBTC is locked in the RSK network, and the same amount of BTC is released in the Bitcoin network. In this process, a consortium of third parties undertakes the locking and unlocking of funds.
Currently, there are few exchanges that support RBTC, mainly concentrated on Kucoin and Bitfinex.
$RIF
$RIF is a token issued in the RSK blockchain, with a total of 1 billion, and is intended to be a utility token that allows any token holder to consume all services that are compatible with and integrated into RIFOS's architecture. Such services may include infrastructure services developed by third parties, as well as any other applications that may be deployed on top of them.
The token distribution plan is:
Approximately 35%-40% will be allocated to private placement contributors. The initial price is in BTC. Approximately 40% will be retained by RIF Labs and unlocked at a rate of 1/60 per month, primarily to promote and increase the adoption of RIF OS. 20% will be allocated to RSK Labs shareholders, founders, and management team as an acquisition of all RSK Labs assets and intellectual property, and as an adjustment to ensure long-term cooperation with the RIF project. These tokens will be unlocked at a rate of 1/48 within 4 months after the end of the token sale, with an initial cliff of 6 months. There will be no public sale of tokens, but RIF Labs will initially set aside 21 million tokens to provide RIF token rewards to early adopters of RIFOS through a series of bounties and early adoption. IX. Advantages and Risks Advantages
The RSK protocol is based on a two-way peg to the Bitcoin mainnet. This layer uses RBTC as gas running on top of the Bitcoin network and is pegged 1:1 to BTC, allowing Bitcoin to fully realize its potential through Turing-complete smart contract capabilities.
The RSK protocol is secured through merged mining, which means that it can achieve similar levels of security as the Bitcoin network in terms of double-spend prevention and settlement finality, provided that pure Bitcoin miners and Bitcoin/RSK merge miners have aligned incentives.
In its current state, the RSK protocol has demonstrated its ability to scale far beyond the Bitcoin network (up to 100 transactions per second, 20 times that of the Bitcoin network) while also reducing storage and bandwidth usage.
Risks
Market competition is a major risk for the project. As more and more projects emerge, RSK needs to compete with other projects to gain market recognition (such as the emerging BTC second-layer project Stacks). The RSK protocol must be more secure, efficient and decentralized to gain broad support from the ecosystem.
In terms of the token model, we need to note that the current circulation of RBTC is relatively low, which means that the block mining situation of the RSK network is also very low. Increasing the access to RBTC is extremely important for the development of RSK, and progress in this area needs to be improved. For RIF, the future development of the RIF OS ecosystem also requires the support of RIF token incentives.
In short, as a smart contract platform protected by Bitcoin computing power in the form of joint mining with Bitcoin, RSK provides more services for the future Bitcoin ecosystem. RIF OS will not be limited to the RSK blockchain, but will be built on infrastructure on different blockchains to truly create value and financial systems. The RSK protocol has a reasonable overall architecture, but in the face of market competition and challenges, there is still room for improvement in its subsequent development.
references
https://dev.rootstock.io/rif/
https://rootstock.io/rsk-white-paper-updated.pdf
https://rootstock.io/rif-whitepaper-en.pdf
