RSK is working on creating a sidechain by the end of the year that would make it possible for ICOs to be launched using Bitcoin.
RSK working on bringing back ICOs to Bitcoin
Since 2013, developers have been working on the concept of fundraising on the Bitcoin network. J.R. Willett, who claims to have come up with the idea, was able to launch an ICO for the Mastercoin project on the Bitcoin network and raised $500,000 in the process.
Over the past two years, RSK has been working on its Turing-complete smart contract sidechain for Bitcoin. The sidechain would make it possible to launch ICOs on the Bitcoin network, and meaningfully improve crowdfunding.
Temco, a South Korea-based blockchain startup will be the first ICO to launch on the smart contract sidechain.
The company, which is looking to enter the supply chain management sector, will leverage RSK’s technology to launch an ICO which the company hopes will raise $19 million.
Just like Ethereum, RSK is writing their smart contracts using the Solidity language. The network would work using a bitcoin-pegged cryptocurrency dubbed called Smart Bitcoin or SBTC.
The RSK sidechain is still in its beta version, with only a few projects deploying their smart contracts on the network.
Temco CEO Scott Yoon and head of business development Joey Cho believe that given time, the Bitcoin network would be able to bring in more projects and even compete with industry leader Ethereum for ICO launches.
Yoon believes that Bitcoin has what it takes to become a cryptocurrency that is only used as a means of payment.
Temco token to be used for various purposes
Temco will issue tokens that will primarily be used to enable small and medium-sized businesses to track their products via its supply chain.
The token would be used by both the vendors and the consumers and can be used to pay for products, data storage, and subscribing to business intelligence tools.
Using the tokens as rewards, users of the platform are able to “review” their purchases, and incentivize high-quality products.
The public sale of the token is planned to commence in November and the organizers said they will accept both Bitcoin and Ether as a means of payment. The token sale would be available for users all over the globe with the exception of China and the US.
ICOs on the Bitcoin network could lead to mass adoption
Even though Bitcoin ICOs would be similar to those launched on Ethereum, several notable differences are intended to improve on Ethereum’s implementation and support of the projects.
Unlike Ethereum, launching ICOs on the Bitcoin network could sustain the creation of real products thus leading to mass adoption, claim Yoon and Cho.
“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.”
Cho further added that RSK would have transaction speeds to match that of online giant payment platform, PayPal.
RSK technology still in development
Despite the hype and expectations, the RSK sidechain is still being developed. The beta version of the platform was launched at the start of the year and is only available to a few select developers, business partners, and Bitcoin miners.
The project has been progressing smoothly, having received the approval of 80 percent of Bitcoin miners. They are set to implement some important upgrades that would help the Bitcoin network overcome its scalability issues.