Contract network RSK announces that RBTC, a wrapped token that allows users to spend bitcoin on the RSK mainnet and Ethereum blockchain, will now be available to Filipinos.
According to a report from Yahoo! Finance, Filipinos are among some of the most active cryptocurrency holders in the world, with an estimated 20% of all Filipino respondents having used or owned crypto. This puts Filipinos far ahead of many other countries in the world like the US (6%) and Japan (4%).
With bitcoin still the most popular cryptocurrency around, it can then be inferred that many Filipino cryptocurrency traders hold at least a portion of bitcoin. The problem is that bitcoin transactions can only be completed on the Bitcoin blockchain, and not on an alternative like the Ethereum blockchain.
With RSK, bitcoin transactions can now take place on Ethereum.
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The RSK network is a contract platform that is connected to the Bitcoin blockchain. RSK has smart contracts enabling faster payments or transactions, greater scalability, and better security. As a native token of the RSK network, RBTC also helps add to the functionality of the Bitcoin network.
RBTC functions similarly to wrapped bitcoin or WBTC. WBTC is a token created to make bitcoin usable on the Ethereum blockchain, whether it’s Ethereum wallets, apps, or smart contracts. For one, the value of RBTC is also pegged 1:1 with Bitcoin.
Given that the Ethereum blockchain has enjoyed increasing popularity recently (with some speculating it could soon end Bitcoin’s reign as the dominant blockchain), the ability for bitcoin to be used on its blockchain is beneficial.
RBTC is managed by the Powpeg protocol, which enables secure, permissionless, and trustless crypto transactions from the main blockchain to the secondary blockchain (RSK) and vice versa. The Powpeg system is supported by 11 independent bodies, all tasked with keeping hardware and blockchain nodes up and running. None of these 11 have the power to affect smart contracts or change the number of RBTC tokens in circulation.
In contrast, WBTC is managed by a federation composed of three publicly disclosed members with two of them can even make changes to the smart contracts or move funds at any time.
According to Asia Partner and Adoption Marketing Manager at IOV Labs (the company behind the RSK platform) Estelle Reynal, RBTC fulfills true decentralization and empowers Filipinos like no other token.
“RBTC was created so that no outside body can just affect its value on a whim,” Estelle Reynal, Asia partner and adoption marketing manager at IOV Labs. “With RBTC, Filipinos can finally harness the best of both Bitcoin and Ethereum blockchains.”
Reynal also points out that because RBTC is connected to the Bitcoin blockchain, it comes with lower transaction fees. “Gas fees on Ethereum are significantly higher than on the Bitcoin blockchain,” Reynal explained. “Recently, costs have even run up to 200x more on Ethereum recently for certain transactions.”
Overall, Reynal and the rest of the RSK team see RBTC as a quintessential tool for helping Filipino crypto enthusiasts get the most out of their crypto investment in a safe and efficient manner.