Rootstock, which has been in development for many years now is probably one of the most important projects for the Bitcoin ecosystem because it will allow Turing-Complete Smart Contract participation and near instant payments. For those who do not undertand what this means: In computability theory, a system of data-manipulation rules (such as a computer’s instruction set, a programming language, or a cellular automaton) is said to be Turing complete or computationally universal if it can be used to simulate any Turing machine. Much has been said about what Bitcoin lacks the past year, and Rootstock will solve a lot of these issues. Another benefit of Rootstock is that it can scale to 100 transactions per second, which is the same as PayPal.
“Since the creation of Bitcoin there has been a race for faster transaction confirmations. Instant payments allow new use cases, such as retail store payments, and transactions in online games. RSK carefully chosen parameters and new theoretical protocols (such as DECOR+GHOST) allow creating blocks at 10 seconds average interval, with low stale block rate, and no additional centralization incentives..”
Turing-Complete Smart Contracts were proposed by Nick Szabo in 1993. Rootstock will be implementing this, allowing for compatibility for Ethereum developers.
- Micropayment Channels – allow two parties to make secure regular low valued payments without paying fees for each payment, but only one time when the channel is closed.
- P2P Distributed Exchange – Exchanging Crypto Assets without 3rd parties.
- Retail Payment Systems – To allow for more global adoption of Bitcoin. As most BTC users know, transaction times can take 10 minutes or more. RSK aims to solve this problem, with transactions taking just a few seconds. This is one of the most important elements of the project and also one of the most discussed topics regarding BTC. The RSK network, using the DÉCOR+ protocol, allows to process over the Bitcoin Blockchain up to 300 tps (twice as much as Paypal).
- Escrow Services – Oracles will sign, or not, a transaction defining whether or not it should be executed without having any contact with the funds under escrow.
- Crypto Assets Creation – RSK supports the creation of Altcoins secured on the Bitcoin network.
- Decentralized Remittances – Important for developing countries.
- IP Protection – Proof-of-Existence.
- Voting – Digital voting.
- Micro Lending – 50% of human civilization does not have access to the global financial system. RSK will allow for the growth of Micro Lending Contracts for developing nations.
- Supply Chain – The origins of a variety of things like food for example can be traced using the Bitcoin Blockchain at an extremely low cost.
- Online Identity – Digital global registries of people in developing countries who do not have access to traditional identification documents.
Will Rootstock be Revolutionary for Bitcoin?
Is it possible that Blockchain is the 4th industrial revolution? Rootstock and it’s contribution to the Bitcoin Blockchain could impact the world tremendously. With all of the RSK projects proposed, if implemented, could be a massive shift in terms of global finance.