update 19 August 2021

Bitcoin Dapps – Are there any Dapps on the Bitcoin Blockchain?

Dapps or decentralized applications are a part of the whole Smart Contracts ecosystem. When you think about it, the applications you use on your smartphone and computers are just generalized agreements between two parties: I agree to use a product produced by the developer who agrees to satisfy my desire and increase my utility. People realized that since blockchain is on a roll to decentralize everything, why not decentralize applications? And what better way to do that than using smart contracts?

There are dozens of platforms currently operating in the blockchain sector that support and innovate the dapp ecosystem. Ethereum, NEO, Stellar, among others, have built their entire business model centered around the development of dapps. And so, with all the competition, why should one consider looking into dapps on the Bitcoin blockchain? Can the Bitcoin blockchain even support the development of dapps?

Can the Bitcoin Blockchain support Dapps?

There is a debate that argues about the feasibility of building on top of the bitcoin blockchain because bitcoin is not really a general-purpose platform like Ethereum or NEO. But then, let’s not forget the monetary value that bitcoin holds. Bitcoin’s practical value is currently questionable as it has long been blamed for its dense traffic, high transaction fees, limited block capacity, poor scalability, etc. Nevertheless, Bitcoin remains the most broadly-known blockchain network globally with the highest market cap. This makes optimization performed on top of Bitcoin still able to generate great technical value. The added layer gives Bitcoin extra capacity to perform tasks it otherwise couldn’t. The following are six widely adopted applications that run on top of Bitcoin.

The Best Dapps on the Bitcoin Blockchain

  • RootStock – 2-way Peg to Bitcoin

RootStock or RSK is the first open-source smart contract platform with a two-way peg to Bitcoin. What that means is that to transact on the RSK platform, a sum of BTC is first locked on the Bitcoin Blockchain through multi-signature, and then an equivalent amount of RTC is unlocked on the Rootstock platform. These RSK can then be used to make smart contracts and develop applications on the Bitcoin blockchain.

The RSK project is dedicated to expanding on the side chain technology for Bitcoin. RSK exists as a side chain with a two-way peg to Bitcoin, which in reverse can expand Bitcoin’s ecosystem. RSK has proposed a two-way peg design when applying the side chain technology as per the initial plan. The advantage of RSK includes

1) Deployment of smart contracts: RSK provides a solution to the lack of smart contracts on Bitcoin with a Turing-complete RSK Virtual Machines (RVM);

2) High transaction speed: RSK allows creating blocks at 10 seconds average interval and 300 TPS without sacrificing decentralization.

  • Lightning Network – The Payments Channel

Initially conceived as a solution to bitcoin’s scalability problem, Lightning Network or LN has since gained serious momentum and scope. LN now even supports cross-blockchain transactions, although the number of blockchains under LN is relatively low for now.

In essence, Lightning Network solves Bitcoin’s scalability problem by shifting transactions off-chain and increasing throughput, essentially becoming a sort of smart contract for the Bitcoin blockchain. Users of the Lightning network essentially stake their holdings in a contract off-chain and shift the ownership without going through the tedious process of propagating transactions on-chain. This also ensures that transactions stay private, for better or worse.

After several failed attempts, LN finally saw a glimmer of success in 2018 when the protocol was fully out of the beta stage and ready for large-scale use. Adopting LN went through the roof, with Zebpay, Blockstream, Copay, and Stellar discussing and implementing some form of LN.

  • Zen Protocol – Building Financial Products on Bitcoin

The Zen Protocol is a multipurpose platform built on the Bitcoin Blockchain that offers a huge variety of commercial solutions for the financial world looking into Bitcoin. Zen allows anyone, anytime, anywhere to create and trade financial products on the proof-of-work based Bitcoin blockchain. Zen provides users with an open marketplace for options, futures, digital currencies, and all types of financial instruments.

Unlike other platforms, Zen makes it possible to build smart contracts with real utility, making it viable for them to use real-world data and work without intermediaries or central control. Zen’s assets are created by contracts, making possible decentralized, automated escrow, meaning that Zen traders no longer need trusted counterparties.

  • Factom

Managing, auditing, and protecting the authenticity of data is a major challenge. Factom runs on top of Bitcoin and provides tools to make record-keeping both transparent and inexpensive.

Paul Snow and David Johnson initiated the project in January 2014 under the name Notary Chains.

Factom’s first client software version was released in January 2015, followed by a token sale in March in which 2,278 bitcoins were raised by selling Factom’s native coin Factoid to backers. Factom counts the US Department of Homeland Security as a client, among other public institutions worldwide.

  • Colored Coins – Segregating Transactions

Perhaps the oldest proposed application for Bitcoin, Coloured coins, have lost the craze they once had. In essence, a ‘colored coin’ is a Bitcoin transaction that has been customized by adding metadata to it. Within Bitcoin’s structure, the ColoredCoin framework makes it possible to add information to a transaction and differentiate one coin from the rest. A coin that has been customized through the addition of metadata can be used to represent a real-world asset.

The idea for placing colored coins on the Bitcoin application came up as a realization by developers that they could add data to transactions and have coins represent whatever they wanted on the blockchain.

Btc
Bitcoin
$43.286
price
3.18686%
price change
BUY NOW

Enthusiasts of this use of Bitcoin have formed a loose organization, intending to expand the ColoredCoin framework. They have developed full node client software that helps users create, manage, and trade digital assets on top of the Bitcoin blockchain.

More posts

Can You Gamble with Crypto in Las Vegas

Las Vegas is best known for gambling with an enormous concentration of world-class casinos and hotels. This entertainment hub situated in the State of Nevada attracts thousands of tourists across the world to experience the glamour and gambling life. Following the massive growth of Bitcoin in recent years, Las Vegas has increasingly embraced it, with widespread use, especially as a mode of payment for dining, rent, cars, etc. Over fifty businesses in Las Vegas, Nevada accept cryptocurrency as a mode…

Cases of the Longest Bearish Price Trends in the Crypto Market

The crypto world's decade-long existence has not been flawless. Like in any other market, there is always a bear trend that leads to massive losses. The 2008 market crash is one of the biggest bear markets in the financial world, and others occurred in the following years.  Crypto has seen cases of long market crashes as well, some lasting over a year. This guide will be looking into 5 of the must-know crypto market crashes. Furthermore, it will highlight the…

Who will enter the CryptoSphere first: Amazon or Facebook?

Amazon and Facebook are some of the biggest technology companies in the world and have long been the main drivers of tech innovation across the globe. These two companies have substantially impacted billions of internet users, whether it's through Facebook's pioneering and massively successful social media platform or Amazon’s enormous e-commerce platform and cloud computing services.  Both Amazon and Facebook have made several steps in the cryptosphere pushing for the adoption of cryptocurrencies and blockchain technology. In fact, Facebook and…

What Really Happens When Swapping Cryptos?

The process of swapping cryptocurrencies can be somewhat complex. Sometimes, you may end up lacking the exchange assets you need. For instance, you may want to exchange BTC for ZIL. Generally, there are very few exchanges that support direct BTC to ZIL exchanges. Therefore, in many scenarios, an individual will have to find a BTC trading pair. Exchange the BTC to another pair connected to ZIL, then complete by exchanging the second asset to Zil. Generally, following the whole exchange…

Could Brexit be the Underlying Reason for Developing The Digital Euro

After the election in December 2019, the British Parliament decided to ratify the withdrawal from the European Union. Factors that influenced Brexit included immigration, sovereignty, anti-establishment politics, among others. Could Brexit have influenced the development of the digital Euro? Read on to find out as we break down factors that led to the development of digital currency. The Growth of Digital Assets The concept of digital assets is not novel; its penetration and influence have left no stone unturned. The…

What Are Crypto Validators and How do They Work?

Crypto Validators are new "payment processors" in decentralized networks, and as such, they produce blockchain rewards. It sounds simple, doesn’t it? However, the definition of validators in crypto is much more complex than that. Also, the role of a validator may change depending on the consensus mechanism that each blockchain uses. In this guide to validators in blockchain, we take a closer look at this entity and its indispensable role. Furthermore, we analyze four validator use cases in different blockchains…

How Many ETH Will Burn After the London Fork?

Since its launch in July 2015, Ethereum has grown exponentially to be the second leading cryptocurrency in market value after Bitcoin. The platform’s growth has primarily been attributed to its smart contract feature, which powers the deployment of a wide range of applications, including oracles, decentralized finance (DeFi), decentralized exchanges (DApps), marketplaces, crypto-collectibles (NFTs), and developer tools.  Despite its growth, Ethereum faces numerous challenges that hinder its usability. The scalability challenge is one of the biggest ones that Ethereum faces. The current state…

The Impact of Adoption of Cryptocurrencies on E-commerce Business

E-commerce is the short form of electronic commerce. It is the buying and selling of merchandise over the internet networks. It also involves the transfer of funds and the keeping of records to certify the transactions made. E-commerce is of three types; business-to-consumer (B2C), business-to-business (B2B), and business-to-government (B2G). The main reason for using cryptocurrencies in e-commerce is to get rid of third parties that control the transactions. This relationship can make online shopping much easier and safer since blockchain technology that backs up cryptocurrencies is…

What it Means to Make Bitcoin a Legal Tender

June 9, 2021, marks the first move that would make history in Bitcoin's timeline. El Salvador passed a bill where 62 of 84 congressional voters would make Bitcoin a legal tender. Fast forward to September 7, and El Salvador became the first country to make Bitcoin a legal tender. In this article, we shall look into what it means for Bitcoin to be a legal tender in detail; What is Legal Tender? "This note is legal tender for all debts, public and…

The Correlation Between Blockchain Activity and Transaction Fees

Miners and validators are essential cogs in any crypto project. They're the ones who process transactions on a blockchain (BC) activity. For their efforts, crypto projects compensate them for their efforts from transaction fees. A transaction is only valid when it has undergone validation. The process ends in the validators adding it to the BC. Mining consumes a lot of computing power. As such, it's an energy-intensive exercise. The motivation for the miners is the block reward that consists of…