What is Happening?
To enable the transfer of BTC, ETH, USDC, BUSD, and other similar assets across the RSK, Ethereum, and BNB chain, Multichain integrated with the RSK blockchain, the sidechain of the Bitcoin network. Integrating the first Bitcoin sidechain to provide access to DeFi is seen as a key accomplishment for Multichain because this is set to increase opportunities for bitcoin holders to explore DeFi avenues through sidechain integrations and explore the untapped money market on different blockchains.
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What Is RSK?
As Bitcoin’s smart contract platform, RSK (Rootstock Platform) has the potential to empower individuals and improve the lives of millions of crypto users specifically using bitcoin. The decentralized global economy is supported by RSK’s merged mining and EVM-compatible smart contracts, allowing a new decentralized global economy to emerge in the Bitcoin ecosystem. RSK is a second-layer virtual computer designed to alleviate some of the issues with the Bitcoin blockchain, such as smart contract capabilities and interoperability. RSK is a virtual machine. Developed in 2014 to speed up bitcoin transactions and allow smart contracts, it was first made available to users in early 2015.
What are Cross-Chain Bridges and What Is Their Significance?
If you’ve attempted to convert some ETH to another digital asset such as Aave, Cardano or BNB, you know it’s not as straightforward as DeFi applications claim. An interoperable cross-chain bridge enables two blockchains with distinct protocols, rules and governance models to interoperate safely. Using a blockchain bridge, token-based protocols and smart contract applications can transfer digital assets across blockchains.
RSK web3 developers benefit from Multichain’s integration with Rootstock as it gives essential advantages to web3 developers which are not available when developing on bitcoin. For example, users don’t have to invest money on bridges to access financing and the market for their products. In addition, new platforms developed on RSK have a quicker time to market due to smart contract development, verification and testing tools. Due to this, RSK developers benefit from the continuous improvements and optimizations of the Multichain bridge and its interoperability framework, which allows for the transfer of digital assets across a cross-chain ecosystem. Cross-chain bridges allow digital asset transfers to be executed quickly and easily, resulting in reduced transfer costs on non-scalable blockchains such as bitcoin. This also enables the installation of dApps on many platforms that operate on RSK Blockchain.
Understanding the Impact of RSK and Multichain on Bitcoin
A cross-chain bridge facilitates the transfer of data, bitcoin, or NFTs across blockchains. Data and tokens could be exchanged across blockchains that would typically be inaccessible to each other. This is the first time RSK has been integrated into the Bitcoin network. It retains a unique position between bitcoin supporters and those who use the EVM-powered DeFi. RSK developers benefit significantly from the inclusion of Rootstock into Multichain. There is no need to spend money building bridges to get access to funds and the market for their products. This is in addition to the fact that they can bring new RSK-based applications to market quicker.
Multichain just published an enhanced version of its any Call interoperability protocol, making it possible to transmit messages and identify contracts across chains. It will be a valuable tool for developing cross-chain decentralized applications on Rootstock and any other networks supported. Trustless bridges, or decentralized bridges, exist to help consumers feel more secure while transferring their cryptocurrency. Individual nodes participate in the validation of transactions in these systems, making them run like a real blockchain, allowing bitcoin users a secure method to move their digital assets across blockchains.
Final Thoughts on RSK and Multichain Integration
Cross-chain options that allow for the movement of digital assets across blockchains are critical for the development of the blockchain economy. Cross-chain applications unlock the locked potential of bitcoin and allow for such digital assets to be used in high-yielding applications or other protocols. In my opinion, cross-chain capacities are critical for developing the Bitcoin ecosystem as it allows for smart contract capabilities that have been absent for a long time on bitcoin.
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Image credits: Job Savelsberg, Ricardo Gomez Angel and Alexander Nowak.