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With New Integration, Chainlink lands on Bitcoin sidechain RSK

Crypto Business World
published on Fri, 04 Sep 2020
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With New Integration, Chainlink lands on Bitcoin sidechain RSK

Developers on RSK no longer need to create their oracle to build their DApps. Bitcoin (BTC) sidechain RSK will be equipped with Chainlink (LINK) oracles. This will allow developers on the smart contract-enabled chain to tap into market price feeds. It will also tap into other off-chain data to build their applications. 

The integration is being developed by IOVLabs. It is the company behind the RSK sidechain. It is currently live on testne. It is expected to be launched on mainnet in less than a month.

 

Chainlink data will be ported to RSK. This will be done via RIF Gateways. This is an interoperability framework. It is designed to let developers access a broad array of data. This will be from other blockchains and the external world. The framework connects to Chainlink nodes. It relays data between them and the RSK blockchain. The system also makes use of the RSK to the Ethereum bridge. This enables LINK token transfers between the two ecosystems. This allows Chainlink Node Operators to be paid with any token in the Eth blockchain. If they wish to be paid in LINK, they can. They need to go through the bridge to get those redeemed. 

Developers can capitalize on a smart contract network with this integration. It is anchored to the most substantial Proof of Work blockchain. RSK uses a pegged version of BTC as its native currency. The peg process is facilitated by a federation. It is similar to solutions adopted by WBTC or Liquid. 

The company has recently been pursuing the goal of “Bitcoin DeFi.” It will help to capitalize on the boom of lending DApps and decentralized exchanges. These occurred primarily on Ethereum. It features its lending protocol that generates a stablecoin. It is called Money On Chain, which uses RSK’s BTC for collateral.

 

Chainlink oracles are widely used in DeFi. But many projects still prefer to roll their own. The RSK integration could simplify development on the platform with an off-the-shelf solution. It makes a lot of sense for [RSK] to include Chainlink as one of the Oracle technologies. RSK’s security and functionality relies on Bitcoin. But it is still a separate network. It has a different architecture. It heavily focuses on smart contracts. The project wants to capitalize on its generalized scripting capabilities. So it recently started branching out into broader interoperability and enterprise-focused solutions. 

Recently, four major South Korean banks have partnered with Chainlink for a decentralized foreign currency platform.


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