We recently added support for RSK, and I wanted to write a short post about why we chose to add this protocol to our platform.
If you aren't familiar with RSK, you may be familiar with Bitcoin. Bitcoin was and still is the first use case of Blockchain, the first cryptocurrency, and in my opinion the best store of value since gold. Some may argue that Bitcoin is more of commodity or digital asset, but regardless it's used to store value and used for payments and transactions between entities. But Bitcoin does not have capabilities like Ethereum.
Ethereum introduced the world to smart contracts, and since SIMBA Chain is a Smart-Contract-as-a-Service (SCaaS) platform, we were very excited when RSK was developed, because RSK is a EVM (Ethereum Virtual Machine) based side chain to the Bitcoin network that provides smart contract capabilities. So what is a side chain? A side chain is a completely separate blockchain from Bitcoin that is pegged at a 1:1 ratio to Bitcoin (BTC). The word pegged means Smart Bitcoin (RBTC), the RSK side chain, will maintain a consistent ratio with BTC in regards to coins in circulation as well as value.
RSK accomplishes this by something called a two-way peg. A two-way peg means that 1 BTC can always be transferred for 1 RBTC and vice versa. This is how it works, If I want RBTC, I will entrust my BTC to a Federation. The Federation secures my BTC and then releases RBTC to me. I can return my RBTC for BTC at any moment through the same Federation. The Federation is composed of several businesses that support RSK. This process ensures that there will always be a 1:1 ratio of RBTC to BTC. In order to keep a stable value ratio between the two blockchains, RBTC won’t be listed on any exchanges and can only be acquired through the Federation. However, tokenized assets created through RBTC will be able to be listed on exchanges.
For example, let’s pretend Ethereum was a side chain to Bitcoin. ETH would not be able to be traded on exchanges but ERC20 tokens would. Having the trust of Bitcoin along with Smart Contracts will allow for many opportunities to proliferate new business models and applications in Supply Chain and Logistics.
SIMBA Chain is very excited to add RSK and easily enable our API for everyone to build their applications on this network. Along with RSK, we support Ethereum, Quorum, and Stellar, with more to come and you can find us on the Microsoft Azure Marketplace for Enterprise Solutions. To get started log into app.simbachain.com, it's free ;-)
RSK is the first open source Smart Contract platform secured by the Bitcoin Network.
RSK adds value and expands functionality to the Bitcoin ecosystem by providing smart contracts and greater scalability.