714
views

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.

Bitcoin live price
Btc
Bitcoin
$23.512
price
1.28654%
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.

Stay up to date with our latest articles

More posts

Real Yield: The Top DeFi Tokens for Generating Actual Revenue

This year’s brutal bear market has claimed a sizable batch of crypto startups and nascent coins. To weather the volatility, the long-term believers in decentralized finance (DeFi) are in search of one thing: “Real Yield.” The term has grown in popularity among those looking for hidden gems in the market for decentralized finance applications. More importantly, it marks an appetite for responsible crypto investment opportunities that can outlast a turbulent market cycle.  So what exactly is “real yield” in the…

Get Top Notch Smart Contract Audit and KYC Services for your Crypto Project with Solidproof

Solidproof is one of the top auditors in the crypto industry with an increasing offer of smart contract auditing, KYC, and marketing services. The German company has developed quickly since its inception in 2021, building a vast portfolio of prestigious and successful clients. The DeFi space is a nourishing environment for crypto and decentralized finance projects. However, it is also a breeding ground for scammers, multi-million hacks, fraud, and money laundering. Protocols running on faulty codes risk exposure to cybercriminal…

What Is an Iceberg Order in Crypto?

Iceberg orders allow traders to buy or sell a large quantity of cryptocurrency without tipping off the market. By splitting their orders into smaller chunks, traders can execute their trades without causing undue price movement.  This guide will explain what iceberg orders are and how to use them in your trading strategy. What Is an Iceberg Order in Crypto Trading? An iceberg order lets traders buy or sell a large number of assets without revealing their intentions to the market.…

Ultimate Beginner Guide to Bitcoin Improvement Proposals (BIPs)

Bitcoin Improvement Proposals (BIPs) are essential tools in the crypto community. They allow the Bitcoin community to propose and vote on changes to the Bitcoin Core software.  BIPs can also work for other wallets/services and have a process for development and implementation. This guide will explore what BIPs are, how they work, and some of their benefits and risks. What are Bitcoin Improvement Proposals (BIPs)? Bitcoin Improvement Proposals (BIPs) are proposals for changes to the Bitcoin protocol. Anyone can submit…

A Beginner’s Guide to Identifying and Avoiding a Crypto Bull Trap

Cryptocurrencies are a relatively new and exciting investment opportunity but are also highly volatile. Prices can swing rapidly, and it is easy to get caught up in the excitement of trading. However, the hype may arise without understanding the risks involved. This guide provides basic information on identifying and avoiding a crypto bull trap to safely invest in this exciting market. How to Identify a Crypto Bull Trap Crypto investors are always on the lookout for signs of a bull…

Why Do Some Crypto Projects Issue More than One Token?

In recent years, the popularity of cryptocurrency has exploded. As a result, more and more people are looking to invest in crypto projects. However, not all projects are equal, and it can be challenging to determine which ones are worth investing in. This guide aims to help investors make informed decisions about which crypto projects to invest in. It will explain multi-token models and why they have become so popular among crypto projects.  The guide will also outline the benefits…

Are Hardware Wallets Safer than Online Ones?

An online wallet is a software program that stores cryptographic keys. This technology allows users to make digital payments and secure their online presence. Over the last years, many users have started to trust hardware solutions to store their coins. In this guide, we will explore the pros and cons of using these two wallets. In particular, we will focus on a matter that is vital for crypto enthusiasts: the security of their funds. What Is an Online Crypto Wallet?…

Tips for Trading in a Volatile Crypto Market

Cryptocurrencies are a new and exciting investment opportunity but can also be highly volatile. This guide aims to teach you how to trade in a volatile crypto market to increase your success probability.  We will cover everything from identifying a volatile crypto market to managing risk when trading volatility. So whether you are a seasoned trader or just starting, this guide has something for you. Why Is the Crypto Market so Volatile? The crypto market is volatile because it is…

How to Spot a Crypto Project with Great Tokenomics?

In the cryptocurrency world, there are a lot of projects with amazing tokenomics. However, it can be challenging to determine which projects are worth investing in.  This guide will help you spot a project with great tokenomics. In this way, you can make a great decision about where to invest your money.  Before analyzing the technical components of tokenomics, there are other red flags you should be able to spot. Our guide will begin with this premise and then move…

A Guide to the Signs that a Crypto Project is About to Fail

Cryptocurrencies are digital assets and a payment system invented by Satoshi Nakamoto. They use cryptography to secure their transactions and control new units' creation. Cryptocurrencies are decentralized, not subject to government or financial institution control. Bitcoin, the first cryptocurrency, appeared in 2009. With the rise in popularity of cryptocurrencies, there has also been an increase in crypto projects that end up failing.  This guide will explore the signs that a crypto project will fail. By understanding these signs, you can…