Over the past year, Ethereum has dominated the decentralized finance (challenge) ecosystem, but a number of other blockchain projects are planning to join the fray. The second layer, the RSK smart contract protocol aims to bring challenge demand to the Bitcoin blockchain and there are already some RSK based challenge projects in the wild.
In the world of challenge, users operate applications that delegate traditional financial concepts such as issuing assets, lending, borrowing, trading, and collecting interest in a non-custodial manner. Crypto proponents have certainly noticed the creative and sometimes very experimental challenge projects hosted on the Ethereum blockchain.
2020 has also undoubtedly highlighted the successes and interesting blunders of the challenge trend. With all the money invested in these projects, there is no doubt that other blockchains want a share of the challenge and RSK tries to take the reins.
RSK is an open source platform that enables smart contracts secured by Bitcoin (BTC) network. The process is carried out by merger-exploitation because the RSK network is operated by BTC minors representing 52 exahash (EH / s) by hashrate.
During a visit to RSK developers page, the website advertises the âbitcoin challengeâ and highlights a number of projects in development. For example, RSK allows stable coins and projects Money on the chain and FRR both allow guaranteed tokens.
The RSK Network lending, borrowing and liquidity concepts are operated by trading platforms like Huobi, Liquid and Coinswitch. RSK introduced its token bridge on February 6, 2020, and the protocol enables interoperability between chains between RSK and Ethereum.
Similar to Uniswap, the developers of RSK recently announced the decentralized exchange (dex) Rskswap. Essentially, Rskswap users can leverage the Automated Market Maker (AMM) to trade ERC20 tokens and provide liquidity. âAny ERC20 token can be listed on Rskswap,â say the creators of the platform.
âNo authorization is required. Each token has its own smart contract and its own liquidity pool. If there isn’t one, it can be created easily. Once a token has its own smart swap contract and its own liquidity pool, anyone can trade the token or contribute to the liquidity pool while earning a liquidity provider fee of 0.3% â , detailed Rskswap’s announcement.
The Rskswap platform is clearly a fork of the Uniswap protocol, and the website explains it on the Rskswap homepage.
RSK also symbolized bitcoin (BTC) called RBTC and the explorer RSK notes that there is 338 RBTC ($ 3.6 million) locked in the system to date. The RBTC can be leveraged on challenge applications like the Rskswap platform and serve as collateral for loans and peg programs like the RIF dollar.
A number of bitcoiners are excited to see what RSK brings to the bitcoin-fueled challenge space and the sophisticated use cases RSK smart contracts will deliver. RSK smart contracts are also leveraged by the California Energy Commission used in a pilot carbon credit trading project.
What do you think of RSK’s attempt to challenge the Bitcoin network? Let us know what you think in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons, RSK Developers Page, Rskswap App,
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