In early September, Transfero announced the integration of BRZ into RSK, a bitcoin-based blockchain where it is possible to execute the same Ethereum smart contracts.
This characteristic, according to Transfero’s Blockchain Director, Solange Gueiros, provides several opportunities. “Besides bitcoin security, costs are lower, and it is possible to use smart contracts. This creates new possibilities in decentralized finance (DeFi) and allows interoperability between blockchains (BRZ Token Bridge)”, she explained.
According to the expert, the costs of a basic transaction on RSK were 6,000% lower than on Ethereum at this writing (September 27). However, about a week earlier, on September 21, the reduction reached 11,000%.
Another essential detail mentioned by Solange is that, generally, more than 50% of the miners in the bitcoin network also validate RSK transactions. “This represents a large hashpower (mining power), which brings the security of the bitcoin network to RSK”, she said.
The power of Ethereum smart contracts
The Ethereum blockchain was the first to have the ability to run real computer programs. According to Solange, it can be said to have the largest community of developers, who program in Solidity language, used to write the smart contracts.
“As RSK can use the same Ethereum smart contracts, they only need to be published to the RSK network. This ensures great flexibility in the use of BRZ”, she said.
Moreover, according to the expert, each individual has his values and principles. Thus, some (known as “bitcoin maximalists”, or “bitcoiners”) tend to trust the market-leading currency but not other blockchains. “For users with this profile, it is a great advantage to have the BRZ on RSK because they can finally use the BRZ on a network they trust”, she pointed out.
New DeFi opportunities at RSK
There are already several DeFi products and protocols developed at RSK. Some, like RSKSwap, came from Ethereum. This is a decentralized exchange with the automation of liquidity providers. “While it is easy and fast to trade one token for another, it is possible to earn by providing liquidity for the protocol and receiving the trading fees”, Solange pointed out.
Others, such as Money On Chain (MOC), were created exclusively on RSK. “It is impressive the structure created by MOC, where those who have RBTC can buy BPRO, a token that, while it follows the ups and downs of Bitcoin, is collateral for the other tokens in the protocol. In this way, its value will increase over time because it receives the fees of other tokens in the protocol”, she explained, recalling that RBTC is the cryptocurrency equivalent to bitcoin in RSK.
Oracles, such as Chainlink, and stablecoins, such as DAI, also already exist in RSK. Thus, according to the expert, using BRZ in DeFi applications in RSK means harnessing the full potential of decentralized finance.
BRZ Token Bridge: Interoperability between Blockchains
BRZ is an ERC-20 token first listed on Ethereum and then on other networks such as Binance Smart Chain and RSK.
“Imagine that you have BRZ on one blockchain network but would like to use it in another. The BRZ Token Bridge was created to ease that need, which currently works on Testnet”, Solange said, adding that it will soon be available on Mainnet as well.
With this solution, you can send and receive Binance Smart Chain, Ethereum, and RSK tokens, taking advantage of the best of each network.
“To understand how it works, it is worth making transactions on the test networks, at no cost and without fear of making mistakes”, Solange said. “Currently, the user needs the flexibility to take advantage of the best of each blockchain, and having the BRZ on several networks is a great differential”, she added.