Rooch Network is making waves as it joins the Cointelegraph Accelerator program. This project is all about building an application layer for Bitcoin, and it features some exciting elements like MoveVM and Bitcoin staking.
Bitcoin (BTC) started as a digital cash alternative. Over the years, it has skyrocketed in value, becoming a popular investment choice. Now, people mainly use Bitcoin for transactions and as a store of value.
However, as Bitcoin gained traction, its ability to support decentralized applications (DApps) faced challenges. While blockchains like Ethereum adapted to allow DApps and smart contracts, Bitcoin struggled due to its lack of native smart contract capabilities.
In 2021, the Taproot upgrade changed the game. It introduced native smart contract functionality to Bitcoin, finally paving the way for DApps. But even with this upgrade, the number of Bitcoin DApps didn’t surge as expected. Why? The programming languages used were still lacking, which pushed developers toward layer-2 solutions.
Layer-2 (L2) protocols create an extra layer on blockchains. They help manage transaction loads, improving scalability and adding new features. For Bitcoin, these L2 solutions enable the development of more complex DApps.
Still, many layer-2 protocols have serious security and privacy issues. Most operate like sidechains and don’t offer the same level of security as the base layer. Plus, custodial solutions require users to hand over control of their assets to third parties, which can compromise both security and decentralization.
That’s where Rooch Network steps in. They’re creating a new way to build advanced, non-custodial DApps directly on the Bitcoin blockchain. By adding an application layer, Rooch gives developers the tools to create complex applications while keeping control over their assets and data. This could turn Bitcoin into a vibrant hub for decentralized applications, expanding its use beyond simple transactions.
Rooch’s unique “Stackable L2” solution connects Bitcoin’s base layer with a scalable layer 2. It mirrors Bitcoin’s full state, ensuring that both layers stay in sync. This setup offers a smooth experience for developers and users alike.
This modular approach also allows layer 2s to tap into third-party data availability chains. The result? Faster transaction speeds and better scalability.
As Rooch prepares for its upcoming “pre-mainnet” phase, it’s gearing up to support third-party full nodes and integrate Bitcoin’s historical data. This phase will connect to the peer-to-peer network and implement a decentralized sequencer. This sequencer will combine Rooch’s own programming language, Move, with Bitcoin Script to explore cross-chain functionality.
Imagine a DApp that uses Bitcoin to provide yields to holders without custodial risks. With Rooch, developers could create such applications right on Bitcoin. This means secure, fast transactions without relying on third-party control. It could be a game-changer for Bitcoin DeFi, attracting users who value both Bitcoin’s security and the flexibility of DApps.
Rooch Network aims to make Bitcoin a more versatile platform. As they move towards the mainnet and introduce new features, they could drive growth in Bitcoin’s DeFi sector. This could lead to broader adoption and financial freedom, aligning with the core principles of blockchain technology. In short, Rooch could help Bitcoin evolve from just a store of value into a powerful tool for decentralized applications, giving the wider Web3 community even more reasons to engage with Bitcoin.