What Is RSK (RBTC)?

Rootstock Platform (RSK) is a second-layer virtual machine that addresses specific limitations of the Bitcoin blockchain. It was introduced in 2015 by developers to increase Bitcoin transaction times and provide smart contracts.

RSK is not a cryptocurrency or coin; it is a platform that runs alongside the Bitcoin blockchain. When a bitcoin (BTC) is transferred to RSK, that BTC becomes an RBTC, which is a smart contract-enabled bitcoin. The RBTC can be transferred back to the Bitcoin blockchain at any time for standard RSK and Bitcoin transaction fees.

Understanding RSK (RBTC)

RSK seeks to overcome long transaction confirmation times and network congestion by placing smart contracts on a sidechain. A smart contract is a script or program embedded in a blockchain that executes the terms of an agreement between two parties. This automated process reduces the need for trust in an agreement.

The blocks on Bitcoin's blockchain are limited to one megabyte—placing a smart contract into a block reduces the block's capacity to store transaction information and slows down the network much more than it already is. Without significant changes, the Bitcoin blockchain cannot accept additions or extra features—aspects that make a blockchain "scalable."

A sidechain like RSK increases the scalability of the primary blockchain by allowing other tasks to be completed on a secondary blockchain and then be recognized by the primary blockchain. For example, Bitcoin's blockchain takes around 10 minutes to verify one transaction due to the processing power and time needed to open a new block. A side chain like RSK conducts additional tasks to decrease transaction times because it allows the primary chain to focus on mining and validating.

Block confirmation in RSK takes about 28 seconds, much less than the time required for the Bitcoin blockchain. This yields much faster times for users exchanging and transferring cryptocurrency, with reduced costs. In addition to cutting down the time between initiating a transfer and its validation, the substantial price swings that can happen during that 10 minutes—called slippage—are reduced because transaction times are decreased.

You've experienced slippage if you've ever paid for something using bitcoin and had to wait for the transaction to be approved—only to find out its price had dropped while you were waiting, and you suddenly didn't have enough in your wallet to pay for the item.

How Is RSK Different From Bitcoin?

Unlike Bitcoin, RSK is not a cryptocurrency or designed to be a payment method—it is a layer that works in the background to validate transactions much faster via merged mining. Its chain validates blocks and sends them to Bitcoin's chain.

RSK also allows decentralized finance application developers to create DeFi protocols, NFTs, or other digital assets using the Bitcoin blockchain. This concept is believed to allow Bitcoin to become a cryptocurrency ecosystem similar to Ethereum.

On the Bitcoin blockchain, miners are paid transaction fees for using their resources to verify transactions and open new blocks. Transaction fees have risen sharply since Bitcoin was first introduced, so RSK's approach works to lower these fees. Ethereum, in particular, has experienced large "gas fee" increases—"gas" is the term used by the Ethereum community for transaction fees and was adopted by RSK. RSK fees are much lower than Bitcoin or Ethereum, averaging around $.052.

Another prominent aspect of RSK is its focus on security. For example, it uses monetary bounties to help appeal to developers, hackers, and security professionals to help identify vulnerabilities so the system can improve overall security for stakeholders.

The Bottom Line

Rootstock Platform is a second-layer platform designed to supplement slower blockchains. It allows users to create smart contracts, move digital assets across blockchains, and develop decentralized applications.

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