When most people hear about decentralized finance (DeFi) or smart contracts, they think of Ethereum, where the majority DeFi applications are hosted. RSK is working to change that, creating Bitcoin and smart contract compatibility through its sidechain that anchors DeFi to the world’s largest digital currency network. Without RSK, the only way for Bitcoin users to interact with DeFi applications is through Wrapped Bitcoin on the Ethereum network, a synthetic token. RSK has now released a product for better interactions between BTC and dApps in the form of RIF Enveloping.
Easy Onboarding for Defi Beginners
RSK’s latest product is specifically designed to facilitate the DeFi onboarding process. Known as RIF Enveloping, the service will support the use of meta-transactions, allowing third-party applications and developers to subsidize and reduce transaction fees for their end-users. This addition eliminates the need for native cryptocurrencies to interact with smart contracts, majorly simplifying the user experience. Wallet, application and program developers will be able to cover the cost of new user interactions.
The current industry standard across almost all DeFi applications is for the end-user to pay transaction fees. Whether this is on a decentralized exchange, a gaming platform, or purchasing a unique NFT, these fees can begin to add up for frequent users. For new users especially, this can be a significant barrier to entry, as it adds an additional step, and one that can be very expensive when using networks like Ethereum.
Using Smart Wallets, like that offered by RSK partner Beexo Technology, RIF Enveloping can solve this problem. The introduction and support of meta-transactions represent a first for the Bitcoin ecosystem, allowing for greater usability with the option to reduce or eliminate service charges.
IOVLabs CEO and RSK co-founder Diego Gutiérrez Zaldívar stated:
"Bitcoin and RSK are about enabling a new financial system open to everyone."
He continued:
"Making our technology easy to use for non-technical users is key to drive positive change with real impact. RIF Enveloping is a key tool to provide a user experience on decentralized blockchain networks on par with that offered by neobanks while also creating a path to sustainability for wallets and token issuers."
Beexo Does Beginner-Friendly Bitcoin
Beexo is a privacy-focused blockchain company whose wallet allows users to retain full control over their funds, and to send and receive digital assets without revealing personally identifiable information. As operators of a secure and private peer-to-peer wallet whose users have made over 15 million transactions, Beexo has a deep insight into what it takes to onboard new users into the blockchain ecosystem. Its integration of RSK’s Enveloping product is likely to be the first of many such moves, as wallet developers roll out the meta-transaction service for DeFi users.