rsk (rootstock) - smarter bitcoin

Rootstock

Smarter Bitcoin. A look at the RSK White Paper.

BlockchainHub■ Stefan Kliment ■ August 29, 2016

Video: What is RSK?

Introduction to RSK

Introduction to RSK

A little background info

• “Smart contracts” first introduced as a concept in 1993 by Nick Szabo

• Rootstock serves as a smart-contract platform that incorporates a Turing Complete Virtual Machine to Bitcoin

• Also provides faster transactions and better scalability

Introductionto RSK

A little background info

• RSK is an evolution of QixCoin, created in 2013

• Near instant confirmations: 300 tps, confirms payments in less than 20 seconds

• SHA-256D merged mining

RSK as a Bitcoin Sidechain

RSK as a Bitcoin

SidechainMoving on to the hot stuff

• BTC transferred into RSK blockchain become “rootcoins” (RTC). Essentially BTC living on the RSK blockchain

• Can be transferred back anytime at no additional cost (standard RSK tx fee)

• RTC: base currency used to pay miners for tx and contract processing

• No currency issuance: all RTC created from BTC

RSK as a Bitcoin

SidechainMoving on to the hot stuff

• Turing-complete Rootstock Virtual Machine (RVM) allowing smart contracts

• Average first confirmation after 10 seconds

• Safe merged mining combining PoW with federation (threshold-signature based)

• Low-delay fast relay backbone into peer-to-peer network

• Two-way pegging with sidechain (currently federated, later fully automated)

RSK as a low-cost BTC payment network

A low-costBTC payment

networkSave some dough

RSK Use Cases

RSK Use CasesOk. And why is this interesting?

• Micropayment channels: secure low valued payments without fees for each tx, only when channel is closed

• Hub-and-spoke networks allow mutually untrusted users to make low-cost one time payments to and from third parties with minimal trust

• Peer-to-peer distributed exchanges


• Retail Payment Systems: BTC adopted globally for everyday retail transactions

• Escrow Services: oracles sign (or don‘t sign) a transaction defining whether it should be executed (or not) without touching funds under escrow

• Crypto-asset creation (“altcoins”)


• Asset Securitization: creation of digital tokens backed by real assets (shares, debt, any other asset)

• Decentralized remittances

• IP protection / registry

• Voting system: RSK allows the creation of digital votes

• Micro-lending


• Supply chain traceability: digital wallets allow for tracking and tracing physical locations of a product

• Online reputation & digital identity

• In-game global currencies: BTC as RSK coins, spendable in other games

• Internet gambling / prediction markets / fair-playing

RSK Technology Overview

RSK Technology

OverviewUnder the hood

• Turing-complete resource-accounted deterministic virtual machine for smart contracts

• Two-way pegged Bitcoin sidechain for BTC denominated trade

• Hybrid merge-mining / federated consensus protocol for consensus security and low-latency network for fast payments

RSK Technology


• RVM: independent, compatible with EVM (at opcode level)

• Provides Ethereum users possibility to run projects with security of the Bitcoin network

• Planned: new opcodes for fast int32 arithmetic and better just-in-time compilation for enhancing performance

RSK Technology


• A sidechain is an independent blockchain, native currency is pegged to the value of another blockchain by using proofs of payment

• Two currencies can be exchanged freely, automatically and without incurring in price negotiations

• BTC are locked in Bitcoin and the same amount of RTC are unlocked in RSK, vice versa

RSK Technology

OverviewUnder the hood (Or: what the hell

is going on here?)

• Dynamic Hybrid Merged mining / Federation: DECOR+ block reward sharing scheme. GHOST rule counts uncles as normal blocks and secures best chain. BTC mining efficiency is maximized

• Please dig into white paper for more on this

RSK Technology

OverviewUnder the hood (Or: what the hell

is going on here?)

RSK Technology

OverviewMore fancy words. Really, pleasehave a look at the white paper.

• DECOR+ protocol

• Two Stage Block Propagation (2SBP)

• Push Missing Transactions Protocol (PMT)

• Delayed Transaction Inclusion Heuristic (DTI)

• Immediate Block Header Propagation (IBHP)

• Two Prioritized Streams for each Connection Protocol (2PSC)

RSK Technology

OverviewMore fancy words. Really, pleasehave a look at the white paper.

• Mining on Unverified Blocks Heuristic (MUB)

• Local Route Optimization Protocol (LRO)

• Re-using of the Bitcoin Mining Network

RSK Technology


• Transaction Privacy: RSK itself does not provide better transaction privacy than Bitcoin, relies on pseudonyms. VM: CoinJoin or AppeCoin can be implemented securely

• Scalability: far beyond Bitcoin in its current state. RSK requires a fifth of the size of a standard Bitcoin payment, block payload per time interval 8 times higher, 50% less bandwidth than Bitcoin since blocks do not contain tx data but only references to known tx

Conclusions

ConclusionsIs this the end?

• RSK is the culmination of 4 years of blockchain technology improvements, making use of the best features of programmable money and payments while increasing the value of BTC

• Developers can create personal and corporate decentralized solutions that run on the most secure network worldwide with low tx cost

ConclusionsIs this the end?

• Bitcoin miners can participate in the smart contract market, ensuring sustainability of the mining industry

• Broaden the base of miners strengthening Bitcoin’s network security

• Development of a decentralized, instant and inexpensive financial system

Follow RSK

Rootstockrsk.co

@RSKSmart