Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
With the Ethereum/RSK bridge, DAI or any other Ethereum-based stablecoins or assets can easily be converted to rDAI or their RSK equivalents.
Making a Move Away from Ethereum’s High Gas Cost
Those who have tried to make Ethereum-based transactions will understand how expensive a single transaction could cost. From swapping two tokens on any Ethereum-backed decentralized exchange (DEX) like Uniswap to sending Ether or ERC-20 tokens from one wallet to another, the fees are almost always unbearable.
We cannot throw blames on the Ethereum blockchain. The network was designed as the first public blockchain to let smart contracts and DApps thrive. In fact, Ethereum is the foundation for the growing decentralized finance revolution the blockchain ecosystem is witnessing today. The network got congested against the initial expectations, with new projects building on the blockchain. The resultant implication is the high gas fees.
Irrespective of the root cause of the congestion, users demand a less expensive means to transact, at least, something cheaper than what traditional finance offers. Many developers have designed and launched other competing blockchain networks including Polkadot, and Binance Smart Chain, but these are also witnessing considerable congestion today.
Then, RSK came into the picture. RSK is a smart contract blockchain protocol that is provably secured by the Bitcoin Network. Its design qualities make it one of the most durable blockchain infrastructures that can meet the needs of today’s decentralized finance ecosystem.
RSK Network in Retrospect
The RSK protocol was designed to be a direct answer to the woes of the Ethereum Blockchain. Despite being described as a Bitcoin sidechain, RSK has Ethereum Virtual Machine (EVM) compatibility and can easily communicate with Ethereum’s smart contracts, DApps and tokens.
What this implies is that ERC-20 tokens can function effectively in the RSK ecosystem. RSK offers an extremely cheap alternative to transact, cutting the average gas fees from a few dollars, to just about 15 cents, or 80 times lower than what the Ethereum blockchain currently offers.
While many alternative blockchain networks are attaining the peak of their capacity, RSK has only utilized as much as 15%, with 85% additional capacity to go. RSK’s block mining rate can be doubled in order to accommodate more, and scaling up can easily be implemented.
Presence of DAI, Other Ethereum Stablecoins on RSK
With the Ethereum/RSK bridge, DAI or any other Ethereum-based stablecoins or assets can easily be converted to rDAI or their RSK equivalents. The conversion is bi-directional and each r/DAI asset can easily be converted back to its original forms.
One of the easiest ways to convert an Ethereum-based asset to its RSK equivalent is by connecting the token bridge dApp via Wallet Connect with Defiant wallet which supports both blockchains. For those not conversant with DeFi and related connections, you will need to scan the QR code shown on the website which will enable you to start swapping the tokens in the dApp. After scanning the QR code, you will be required to confirm the incoming transaction on your phone after which you are done. After a few seconds, the swapped tokens should appear in your wallet.
Using Defiant, users who do not want to pass through the complications of using the Token Bridge can simply utilize the swap feature on the app. There are a lot of Ethereum-RSK pairs to choose from.