The stability and performance of Bitcoin price has solidified its dominance as a currency and soon developers may flock to Bitcoin to form sidechains, or extensions, bringing unification to developer innovation and stable economics.
The functionality of 2-Way Peg’s (2WP) creates a bridge for projects like Rootstock enabling developers to use the Ethereum Virtual Machine while tapping into the market of Bitcoin directly. A 2-Way Peg allows users to move Bitcoin into other Blockchains and back enabling sidechain technology. Rootstock’s(RSK) sidechain is merged mined with the Bitcoin network. While there are many models for implementing a 2WP, utilizing merge mining, taps the security of the Bitcoin network, and allows miners to determine the validity of the peg. This does require coordination with mining pools but if the economics are beneficial for miners to merge mine ultimately miners will add the minimal code required to compete for blocks on both chains.
I believe this is the model that brings the best of both Bitcoins PoW and decentralization, and the utility of a 2WP.
Rootstock passed their testnet launch called Turmeric recently and is slated for livenet release in mid-2017. Developers can already start experimenting and deploying testnet applications. In addition, RSK uses the Ethereum Virtual Machine (EVM), giving developers nearly all of the same functionalities as Ethereum, and the familiar Solidity compiler. In some cases, developers will need to modify code, so it’s not identical, but enough so, that most existing Ethereum applications will run without extreme modifications. Let’s see what Rootstock says about the potential in their own words:
“RootStock represents the culmination of 4 years of blockchain technology improvements and it will allow the cryptocurrency ecosystem to make use of the best features of programmable money and payments while increasing bitcoin (the currency) value.
It will allow