The most popular cryptocurrency Bitcoin and its blockchain protocol are often considered to be the best for the ‘transfer of value’. On the contrary, Bitcoin rival Ethereum is considered to be the most preferred destination for crypto firms for launching decentralized applications (dApps) and smart contracts. The Ethereum blockchain is also considered to be the hot choice for fundraising through Initial Coin Offerings (ICOs).
However, the latest report shows that the Bitcoin blockchain can host an ICO by the end of the year, made possible through a sidechain created by RSK. South-Korean blockchain startup Temco, which targets the supply chain management industry, plans to launch a public token sale by the end of November. Temco says that it will leverage the RSK’s technology of sidechains and plans to raise $19 million through an ICO on the Bitcoin blockchain.
Since early 2016, RSK is working on a smart contract sidechain project for Bitcoin. Just like Ethereum. the smart contracts are written in Solidity. The sidechain smart contract is further fueled by a Bitcoin-pegged cryptocurrency dubbed “smart Bitcoin” or SBTC.
Note that the RSK sidechain is currently in the beta stage of its development. Temco’s CEO Scott Yoon and head of business development Joey Cho, however, are quite optimistic about its future. They believe that with time, Bitcoin will start to attract more blockchain projects as one day it will have “the same function like ethereum.”
In a word with CoinDesk, Yoon said:
“RSK … will be dominating [the smart contract] ecosystem and [for] bitcoin that will open another era of bitcoin, like ethereum.”
Temco’s Crypto Tokens
The South-Korean blockchain startup’s main aim is to empower small-and-medium scale enterprises (SMEs) to track products through its entire lifecycle – from origin to consumption – in the supply chain. Several industry experts have said that blockchain stands as the most affordable and immutable method to store the supply chain data.
For Temco’s application, it token will be used by consumers and vendors to make payments for products, storage of data and also for the subscription to business intelligence tools. Temco will also have a reward point systems for its consumers for activities like general participation, reviewing purchases to ensure product quality, tracking the purchases based on the data stored on the blockchain, etc. The points accumulated can be later converted into Temco’s native digital tokens.
Cho says that the company plans to raise nearly 40 percent of the money required to develop the blockchain infrastructure through its public token sale. The remaining amount of money can be raised in private investment deals. The public sale of tokens will accept both Bitcoin and Ether.
ICOs on Bitcoin Can Set a New Precedence
The ICO fundraising to be conducted on the Bitcoin blockchain will be exactly similar to that currently done on the Ethereum network. However, Yoon and Cho believe that unlike other blockchains, including Ethereum, the Bitcoin blockchain network holds a larger capacity to sustain the creation of “real products” developed for mass adoption.
“We believe RSK is one of the best blockchain technology because … if we create our supply chain on top of let’s say ethereum … number one the gas fee is amazingly expensive…which is not ideal for the Temco supply chain since we use lots of smart contract transactions.”
Furthermore, Cho says that the transaction per second (TPS) speed of the RSK sidechain is at par with online payment giants like PayPal. Yoon added:
“Bitcoin network is really ideal because scalability is number one and you don’t have to worry about hacking. So when smart contract tool is brought to the bitcoin network … everybody’s going to want to come to bitcoin.”
In a highly optimistic scenario, Yoon and Cho also predict that going further projects on Ethereum will be migrated to Bitcoin due to RSK’s robust technology implementation.
Miles to Go Ahead for RSK
The entire optimistic scenario of using the RSK technology for deploying the sidechain smart contract deployment sounds very exciting at the moment. However, RSK is still very much in the novice stage of development. After its beta launch in January this year, RSK is currently accessible only to a select group of Bitcoin miners, developers, and business partners.
Future plans certainly include opening the sidechain to everyone. While sharing his optimism about getting smart contracts to the Bitcoin blockchain network, Yoon said: “The reason why we started Temco was we want to see a real blockchain technology actually implementing in the real world and change the society for the better.”