Bitcoin sidechains to support smart contracts for ICOs
An open-source smart contract platform is purportedly developing a sidechain that will allow Bitcoin’s blockchain to launch ICOs.
RSK, which claims to be a smart contract 2-way peg to Bitcoin platform, aims to fulfil the concept of fund raising, which is a project first initiated on the BTC platform in 2013.
At the time, Bitcoin’s blockchain infrastructure was far too limited to support crowdfunding akin to what Ethereum provides. Computer scientist J.R. Willett raised about $500,000 in BTC when he added a second-layer solution “Mastercoin”.
The smart-contract solution is set to host Temco, a South Korean firm developing a supply chain management system on RSK’s technology. The company aims to raise $19 million through its public token sale.
Smart Contract on BTC network
This is not exactly a recent development, as RSK’s dev team has been looking to finalise a Turing-complete sidechain for smart contract support since March of 2016. RSK’s sidechain project also uses a bitcoin-pegged digital currency called “smart Bitcoin”. Presently, there are few cryptocurrency platforms that are utilising RSK’s sidechain solution for smart contracts as it’s still in its experimental testing phase. However, this is bound to change as the flagship cryptocurrency continues to develop its second-layer solutions.
Former equity manager and current CEO of Temco, Scott Yoon, told Coindesk that he believes more crypto projects will start using the Bitcoin platform to launch their smart contract applications. According to Yoon, the platform will be able to effectively perform “the same function as Ethereum” in the future.
Not just a cash alternative
Bitcoin will soon have more use cases apart from being “just a payment cryptocurrency”, according to Yoon. He went on to say that RSK will probably be the leading smart contract solutions provider which will “open another era of Bitcoin, like Ethereum.”
According to developers at Temco, their own recently introduced token will help small and medium sized businesses track their products on its supply chain.
This comes as part of a wave of improvements in the form of second-layer solutions for cryptocurrencies. The same way the Lightning Network focuses on enabling the execution of micro transactions instantly via a new layer, RSK is the rising solution of choice that enables the execution of smart contracts to a distinct second-layer protocol.