DeFi
Rootstock Bitcoin L2 eyes further expansion in Latin America
Speaking at Money 20/20 in Amsterdam, Ricardo Castro of Rootstock Labs highlighted the importance of the Bitcoin layer 2 protocol on providing global access to decentralized finance (DeFi), particularly in emerging markets .
Bitcoin (BTC) and Ethereum (ETH) are by far the two largest decentralized networks, each with unique strengths. BTC is known for its robust security standards, while the Ethereum blockchain emphasizes functionality and utility through smart contracts.
For years, developers have attempted to connect the two concepts and create a network capable of seeding decentralized financial solutions atop the BTC blockchain. Rootstock Labs claims to have achieved this, offering users in Latin America and crypto participants in general a secure smart contract platform backed by BTC.
According to Castro, the protocol has over 2,000 BTC, valued at over $141 million, supporting DeFi development and liquidity for decentralized applications (dapps) on the layer 2 sidechain. The chain uses a native token called RBTC , attached one by one to Bitcoin for the validation of transactions.
Data from DefiLlama also confirmed a total value of over $203 million locked on Rootstock, including over $15 million in stablecoins. Castro told attendees the company would continue to support innovation in the field Bitcoin smart touch capabilities to bridge the gap between BTC and Ethereum offerings.
The startup has a multimillion-dollar developer pool and has already awarded more than 100 grants in the past 12 months, according to the executive.
BTC L2 TVL rootstock | Source: ChallengeLlama