Lto second level platform Root Stock, Also known as RSKWas designed in order to allow the creation of smarts contracts or smart contracts within the blockchain of Bitcoin, but without changing anything in the way Bitcoin works.
Bitcoin was deliberately designed with high restrictions when executing smart contracts, due to the search for a solid and secure platform. However, due to the boom in block chains and Ethereum, which do allow the creation of evolved smart contracts, there are many requests to be able to execute advanced smart contracts in Bitcoin.
Despite the fact that implementing the necessary changes in Bitcoin for this to happen is something really complicated at the consensus level, projects like RSK offer solutions aimed at satisfying this need. In the next chapter of Bit2Me Academy we will explain in detail What is it, how it works and the features of RootStock.
What is RootStock (RSK)?
The RSK platform is a language based protocol Solidity it works like a side chain running in parallel to the Bitcoin blockchain. This protocol is based on a bidirectional communication that operates as a bridge to connect both chains. In this way, it allows the Bitcoin network to assist RSK in its execution. That is why the native currency or token of the RSK platform is the RSK smart bitcoin (RBTC), which has a 1: 1 ratio with the original currency of the Bitcoin network, bitcoin (BTC).
Thanks to the functionality of this platform, today it is possible to enjoy decentralized applications (DApps) and complex smart contracts within the Bitcoin network, much like they occur within Bitcoin networks. Ethereum, EOS and others. But with all the security and robustness that the Bitcoin blockchain enjoys thanks to its great computing power.
Origin and creation of the RSK protocol
The RSK protocol is born from the evolution and merger of two major crypto platforms: QixCoin y Ethereum. QixCoin is a platform designed by the Argentine developer and researcher Sergio Demian Lerner. Lerner first met Bitcoin two years after its launch, and has been passionate about getting to know the Bitcoin network and its blockchain technology in depth ever since.
Thus, in 2011 Lerner, who is a world-renowned computer security researcher, began to develop his own research on Bitcoin and blockchain technology. Searching for bugs within Bitcoin he gradually became an expert in the technology. Later, in 2013, Lerner began to develop new implementations of the technology in order to improve the levels of privacy, scalability and usability of the network. As well as improve your decentralization and the efficiency in carrying out payments and transactions.
All this research and development process led Lerner to create the QixCoin platform. This is a blockchain that integrated its own token that allowed the development of a Turing Complete virtual machine. The project at an early stage was preparing to use the language Solidity of Ethereum, still in development at the time. But despite this, QixCoin allowed the implementation of DApps and smart contracts within the Bitcoin blockchain. A huge technical advance compared to other platforms at the time.
Later, in 2015 the QixCoin project was redesigned, emerging the RSK protocol that we know today. With RSK, Bitcoin can enjoy many functionalities that were not possible or that were limited within its blockchain from the beginning. Currently the development of RSK is in the hands of IOV Labs, the company that resulted from the transformation RSK Labs and joined all its developments in the same suite.
How does RSK work?
RSK is a second level protocol which operates on a blockchain parallel to the Bitcoin blockchain. However, both networks use the protocol Proof of Work (PoW) to perform validations and generate new blocks within your blockchains. Likewise, both networks use the mining algorithm SHA-256. A feature that allows both blockchains to perform the combined mining or merged mining using the same mining equipment and the same computational computing power.
However, RSK provides special features or functionalities that are not possible in the Bitcoin network, for example: RSK Federation, made up of recognized and trusted companies that allow users to exchange their currencies in both blockchains when they need to use functions of the RSK platform. Or have bitcoins sent back to the parallel chain when they need to use them on the main network. On the other hand, RSK allows the implementation of the protocol DECOR +, with which fair and equitable control can be maintained among miners so that they carry out their work in a completely reliable and transparent manner.
Likewise, each time a user requires an action within the RSK network, he must transfer funds from the Bitcoin network, which will be blocked or frozen by the RSK Federation. Once this is done, those bitcoins are transformed into RSK's native token, RBTC in a 1: 1 ratio. These tokens will be used by users to pay miners for actions executed within the RSK platform, such as the execution or processing of smart contracts or the implementation of DApps. Likewise, if users do not use RBTC tokens, they can request the process of returning RBTCs to BTC, to use them in the main chain, that is, in Bitcoin.
Federation: RSK approved members
RSK has an internal operation of the permitted and federated type. In other words, all the members that support the RSK ecosystem are fully registered and identified. They are the well-known members of the Federation and their work is essential for the functioning of RSK.
The operation of the Federation is simple, its task is to block and unblock funds that enter and leave the RSK ecosystem. In exchange for their work, the members of the Federation are awarded 1% of the transaction fees generated in RSK, to cover the costs of hardware and maintenance.
Basically what happens when exchanging BTC for RBTC (RSK BTC), is that the Federation nodes receive some BTC and block their use within the network. Upon receiving these BTCs, the Federation authorizes the issuance of the same amount of RBTCs on the RSK network. When RBTC needs to be converted back to BTC, RBTC is blocked on the RSK network and the same amount of BTC is unlocked on the Bitcoin network. A swap structure that allows RSK participation securely.
But to achieve this functionality without using full Turing smart contracts (which are not supported in Bitcoin) RSK uses a two-way pin system that requires trust in a set of semi-trusted third parties (STTP). These semi-reliable and fully identified third parties are the Federation. Thus the Federation holds the keys that protect the funds blocked in the two-way system. No STTP alone can control blocked BTCs, but only most of them have the ability to release BTC funds. So basically, the members of the Federation what they have is a series of multi-signature addresses under their control, with which they lock and unlock funds as needed.
Of course, there is an automated process that allows you to modify the composition of this Federation. Each member of the Federation can accept or reject a change of composition. The process, which is rare, is driven by a smart contract, so it is open to the public. The protocol has a consensus enforced delay of one week until the change is activated. This allows users to transfer the Bitcoins back to the Bitcoin network in case they do not trust the new composition of the Federation. As of January 2019, the RSK Federation comprises 15 known notaries.
RVM: RSK Virtual Machine Turing Complete
Without this implementation it is highly unlikely that the RSK protocol will work correctly. The RSK virtual machine (RVM) allows the use of a Turing Complete platform through which smart contracts and DApps can be executed without major obstacles or inconveniences. So RVM is the heart of the RSK platform.
For its part, as the RSK virtual machine is compatible with the Ethereum platform virtual machine, the EVM, it is possible to import contracts from RSK to Ethereum, or vice versa. A process that does not demand great work capacity thanks to its compatibility, and which in turn offers great benefits. As the improvement in the processing capacity of transactions, allowing the interaction between smart contracts, DApps and users to be carried out much faster and more efficiently.
RIF OS, an integrated solution for Bitcoin
Currently, IOV Labs has started to develop RIFOS, a solution that integrates all the technologies that it currently has in development and works on its RSK protocol. RIF OS seeks to transform itself thanks to this integration into a platform that covers a series of services that allow the development of DApps ecosystems, DeFi, digital identity, payment systems, communication, data storage and cross-chain bridges or between chains. You can read their whitepaper directly on this link.
With these features, IOV Labs aims to provide tools to overcome Bitcoin's current weaknesses, without having to unnecessarily alter its protocol. For example, RIF Directory is the RIF OS digital identity system. This system would be equivalent in functionalities to what Namecoin and Ethereum Name Services currently provide, even superior in some cases, according to its founders, because RIF Directory can be directly associated with other functionalities such as RIF Storage, to give secure access. to data stored on your network, something very similar to what it does SIA.
On the other hand, RIF OS also offers RIF Payments and Lumino Network. The first is a payment system that allows the use of stablecoins (RSK Dollar), RBTC, or some other token established within RSK. The second is a functionality that allows instant payments using any of the tokens supported by the network (whether from RIF Payments or given by cross-chain bridges). Lumino also allows you to make integral payments in the Lightning Network bidirectionally, because this network is fully compatible.