During his presentation at Money 20/20 in Amsterdam, Ricardo Castro from Rootstock Labs emphasized the Bitcoin layer-2 protocol’s focus on expanding global access to decentralized finance (DeFi), especially in emerging markets.
Bitcoin (BTC) and Ethereum (ETH) are the two largest decentralized networks, each with its own strengths. BTC is known for its strong security measures, while Ethereum’s blockchain prioritizes functionality and utility through smart contracts.
Over the years, developers have attempted to merge these two concepts and create a network that can support decentralized finance solutions on top of BTC’s blockchain. Rootstock Labs claims to have achieved this goal, providing Latin American users and the wider crypto community with a secure BTC-backed smart contract platform.
According to Castro, the protocol has over 2,000 BTC, valued at more than $141 million, supporting DeFi development and liquidity for decentralized applications (dapps) on the layer-2 side chain. The chain operates using a native token called RBTC, pegged one-to-one with Bitcoin for transaction verification.
Data from DefiLlama also confirms that there is over $203 million in total value locked on Rootstock, including more than $15 million in stablecoins. Castro informed the audience that the company plans to continue fostering innovation around Bitcoin smart contract capabilities to bridge the gap between BTC and Ethereum’s offerings.
The startup has set up a multi-million dollar prize pool for developers and has already awarded over 100 grants in the past year, according to the executive.
In summary, Rootstock Labs is making strides in the DeFi space by providing a platform that combines the security of Bitcoin with the functionality of Ethereum, creating new opportunities for users and developers alike.