Ethereum is by far the public blockchain network of choice for ICOs. The platform has become almost universal in its applications for start ups because of the deep feature set available. Smart contracts, a Turing-complete foundation and simple templates for ERC-20 tokens allow entrepreneurs to easily gain funding for their business through token sales. However, a new company will be launching a sidechain on the Bitcoin network to offer a similar feature set with the security and notoriety of Bitcoin.
RSK Smart Bitcoin
The ICO concept was first created on the Bitcoin blockchain in 2013, but because of the clunky technology, Ethereum quickly took over when it was launched in 2015. RSK has been developing the Turing-complete, smart contract enabling sidechain for Bitcoin since early 2016. The are establishing a process for smart contracts to be written in the same dominant language as ethereum, Solidity.
The network will function through the SBTC token “Smart Bitcoin.” It will essentially be a 1 to 1 peg of Bitcoin held on the original Bitcoin network. CEO Scott Yoon believes "RSK ... will be dominating [the smart contract] ecosystem and [for] bitcoin that will open another era of bitcoin, like ethereum."
SBTC vs. Ethereum
One of the major differences is that there will be no “gas” fees on this network in comparison to Ethereum. And overall, the major pull for using this system over Ethereum would be trust in the Bitcoin network because of its long established digital ledger, and its overall number of users compared to Ethereum.
"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."
First Bitcoin ICO
Temco will be the first ICO to debut on the sidechain network. The startup's specific goal with the technology is in giving small - and medium-sized enterprises (SMEs) the ability to track products throughout the supply chain. The token will be used by both vendors and consumers for things like payment for products, storage of data and subscription to business intelligence tools.
There will be a reward points system for users as well. They will be able to converted to tokens for general participation in the network for things, like tracking their purchases from data stored on the blockchain and reviewing these purchases to ensure product quality, in the ecosystem.
By: BGN Editorial Staff