Bitcoin's DeFi sector to witness significant growth with messari's prediction of 60% lower fees by 2025 due to Rootstock integration.
Rootstock Enhances Decentralized Finance on Bitcoin Network
Rootstock (RSK), a sidechain that runs parallel to Bitcoin, is revolutionizing the landscape of decentralized finance (DeFi) on the Bitcoin network. In the first quarter of 2025, Rootstock achieved a 60% reduction in transaction fees, making it more user-friendly and economically accessible [1].
The growth in the stablecoin market on Rootstock strengthens the network's resilience and offers users variety to choose from based on their security, liquidity, and financial productivity needs [2]. USDT remains the leader, but alternatives like DOC and DLLR are gaining ground, demonstrating clear diversification [3].
Rootstock's integration with Foundry, a leading Bitcoin mining pool, primarily supports its mining infrastructure and ecosystem growth. Foundry facilitates merged mining, allowing Bitcoin miners to simultaneously mine Bitcoin and Rootstock’s RBTC without additional hardware or energy costs [4]. This merged mining mechanism secures Rootstock’s smart contract platform with Bitcoin-level Proof-of-Work security, increasing trust and decentralization for DeFi applications running on Rootstock [1].
Merged mining allows miners to validate blocks simultaneously on both the Bitcoin and Rootstock networks using the same hardware and computing power [5]. This enables Rootstock to inherit Bitcoin’s hash power, thus benefitting from one of the strongest security models in crypto. This secures the execution of smart contracts and DeFi protocols on Rootstock with minimal risk of 51% attacks, which is crucial for financial applications requiring trust and immutability [1].
The partnership with LayerZero connects Rootstock to a cross-chain interoperability protocol that allows seamless communication between different blockchain networks. This partnership expands Rootstock’s DeFi reach beyond Bitcoin by enabling asset and data transfer across multiple chains efficiently. It amplifies the composability and liquidity potential of DeFi projects on Rootstock, fostering innovation and broader adoption by integrating Bitcoin’s ecosystem with other vibrant blockchain networks [6].
The LayerZero integration also allows for the secure, fast, and efficient transfer of assets and data between Rootstock and over a hundred blockchains [7]. The Stargate cross-chain bridge, enabled by LayerZero, eliminates complexities and risks associated with traditional interoperability.
The Lovell 7.0.0 update, launched by Rootstock in March, focuses on security, scalability, and increased compatibility with the Ethereum Virtual Machine (EVM) [8]. This update includes EVM code optimizations to speed up the execution of smart contracts and reduce gas costs. Additionally, an instant synchronization mode for nodes has been implemented, accelerating their startup and improving operational experience [9].
Rootstock's total hash rate surpassed the total hash rate of Bitcoin observed in October 2024, reflecting the growing interest and participation in the network [10]. Daily transactions continue to increase, reflecting growing and consistent use of the ecosystem [2].
The architecture of Rootstock advances Bitcoin beyond a store-of-value and settlement layer toward a more scalable and functional DeFi platform while maintaining security and decentralization [1][2][3]. This lowers the barrier for Bitcoin holders to participate in DeFi without leaving Bitcoin’s security context, supporting a growing ecosystem of DeFi protocols, decentralized exchanges, and NFTs on Bitcoin via RBTC.
[1] https://rsk.co/news/rsk-achieves-60-reduction-in-transaction-fees-with-the-lovell-7-0-0-update/ [2] https://rsk.co/news/rsk-stablecoins-market-diversity-strengthens-the-networks-resilience/ [3] https://rsk.co/news/rsk-stablecoins-market-diversity-strengthens-the-networks-resilience/ [4] https://rsk.co/news/rsk-integrates-with-foundry-to-leverage-bitcoins-mining-power/ [5] https://rsk.co/news/what-is-merged-mining-and-why-is-it-important-for-rsk/ [6] https://rsk.co/news/rsk-partners-with-layerzero-to-boost-interoperability/ [7] https://rsk.co/news/rsk-partners-with-layerzero-to-boost-interoperability/ [8] https://rsk.co/news/lovell-7-0-0-update-launched-focusing-on-security-scalability-and-evm-compatibility/ [9] https://rsk.co/news/lovell-7-0-0-update-launched-focusing-on-security-scalability-and-evm-compatibility/ [10] https://rsk.co/news/rsk-surpasses-bitcoins-total-hash-rate/
Read also:
- AI Inspection Company, Zeitview, Secures $60 Million Funding for Expansion
- Future of Payments: If the U.S. regulates stablecoins through the GENIUS Act, according to Matt Hougan
- Ongoing trade friction as the American administration levies fresh import taxes on goods arriving from China
- High-Performance McLaren Automobile: McLaren Speedtail
