Ethereum has long been the dominant platform, being the pioneer of smart contract development. However, developers still face challenges with high gas fees and network congestion, leading to high costs for developers to build and deploy on blockchain. In this context, Rootstock as a Bitcoin based smart contract platform, emerges as an attractive alternative with significant cost saving advantages for users.

In this article, you will understand:

• The cost savings of deploying on Rootstock compared to Ethereum.

• Why developers should consider Rootstock for their projects.

• Why Rootstock stands out against Ethereum L2s: Rootstock unique value proposition.

Understanding Rootstock Platform

Rootstock is a smart contract platform built on Bitcoin as a sidechain, utilizing a merge mining process that inherits Bitcoin security. Rootstock is compatible with Ethereum Virtual Machine (EVM), meaning developers can port Ethereum dApps with minimal modification. Rootstock boasts low fees, high scalability, and seamless Bitcoin integration, making it an ideal platform for dApps targeting cost-conscious users.

Ethereum High Gas Fee Challenge

Gas fees on Ethereum are paid in Ether (ETH) and it fluctuates based on network activity. During periods of high demand, gas fees spike significantly, pricing out smaller users and making certain dApps that involve in micro-transactions or NFT minting economically unfeasible.

For instance, in 2023, average Ethereum gas fees ranged between $5 and $50 per transaction, depending on complexity. Complex decentralized finance (DeFi) transactions, like yield farming or token swaps, often cost between $30 to $200 during peak congestion. Minting an NFT on Ethereum could cost up to $100 or more in gas fees during high-demand periods. These high fees present a significant barrier for developers looking to target broader user bases, especially in emerging markets.

Cost Savings on Rootstock

Rootstock addresses Ethereum fee challenges by offering significantly lower transaction costs. Gas fees on Rootstock are paid in RBTC, a token pegged 1:1 to Bitcoin. Transactions on Rootstock typically cost less than $0.10, even for complex operations. The platform scalability ensures stable gas fees, minimizing unpredictable cost spikes during network congestion.

See the image attached below for a real-world comparison:

Why Rootstock Cost Efficiency Matters

The cost efficiency of Rootstock has several important implications:

1. 1. Affordable dApps for Users: Low fees make Rootstock based dApps accessible to users in emerging markets, where transaction costs can determine adoption.

2. Enables Micro-transactions: Applications requiring small payments such as tipping platforms and micro-payment services, are viable on Rootstock.

3. Incentivizes Experimentation: Developers can test and iterate on their dApps without being hindered by high fees.

4. Attractive for Small Developers: Startups and independent developers save on deployment and ongoing operational costs, allowing them to allocate resources elsewhere.

Case Studies: Rootstock Cost Advantages in Action

Money On Chain is a DeFi platform that enables Bitcoin holders to mint stablecoins, Dollar on Chain (DOC), leveraging Rootstock low fees, making it accessible to a global audience.

Tropykus is a lending and borrowing platform targeting underserved populations in Latin America. The low fees on Rootstock enable microloans and financial inclusion for users who would otherwise be excluded due to Ethereum high gas costs.

SovrynBTC is a decentralized platform where users can trade, lend, and borrow Bitcoin, offering leveraged trading, Bitcoin savings, and margin loans.

Oku Trade facilitates fee-free DeFi transactions with support for on-chain limit orders, built on Uniswap v3 innovation.

WoodSwap is a decentralized exchange (DEX) on Rootstock for token trading with fast transactions and low fees.

Elk Finance provides cross chain liquidity solutions, enabling users to swap assets across different blockchains, including Rootstock.

Beefy Finance offers yield optimizer where users can stake their tokens to earn compound interest across various protocols on Rootstock.

Developer Benefits: Why You Should Deploy on Rootstock

There are several compelling reasons for developers to consider deploying on Rootstock, which is stated below:

1. EVM Compatibility: Developers can port existing Ethereum dApps with minimal code changes, saving time and effort.

2. Bitcoin Integration: Rootstock enables seamless interaction with Bitcoin, offering an additional layer of security and liquidity.

3. Scalability and Stability: The network handles high volumes without fee spikes, ensuring predictable operating costs.

4. Ecosystem Support: Rootstock ecosystem includes tools like the Rootstock Infrastructure Framework (RIF) for identity, storage, and payments.

How Developers Can Leverage Rootstock Cost Advantage

Developers can capitalize on Rootstock cost advantages in several ways like:

• Porting Ethereum dApps; Developers can use Rootstock EVM compatibility to migrate their projects, targeting cost sensitive users.

• Building low cost solutions by leveraging Rootstock low fees to create dApps for micro-transactions, gaming, and financial inclusion.

• Integrating micro-donation systems, incentive driven reward programs, and community engagement tools that make it easier and low cost to reach and support a wider audience.

Why Rootstock Stands Out Against Ethereum L2s

While Ethereum Layer 2 solutions (L2s) appear to reduce gas fees with improved scalability, Rootstock offers a unique value proposition centered around Bitcoin unmatched security, liquidity, and decentralized ethos. Here are notable unique values that make Rootstock stand out.

Bitcoin Integration

Unparalleled Security: Rootstock uses merge mining, leveraging Bitcoin hash power for security, making it the most secure smart contract platform compared to Ethereum.

Direct Access to Bitcoin Liquidity: Through RBTC (pegged 1:1 to BTC), developers can tap into Bitcoin over $500 billion liquidity without relying on wrapped tokens or custodians like on Ethereum L2s.

Decentralized Ethos: Rootstock aligns with Bitcoin principles of censorship resistance and decentralization, which appeals to developers and users seeking true decentralization.

Unique Developer Use Cases

Rootstock enables developers to build decentralized finance (DeFi) applications that directly cater to Bitcoin holders, creating opportunities unavailable on Ethereum Layer 2 solutions. Its low, predictable fees and stablecoin options make it ideal for microfinance, remittances, and financial services in underserved regions. Additionally, Rootstock offers EVM compatibility with the added advantage of Bitcoin's robust security and liquidity, allowing developers to port existing Ethereum dApps seamlessly while benefiting from Bitcoin's strengths.

Stability and Trust

Unlike Ethereum Layer 2 solutions, which often rely on volatile tokens for fees, Rootstock uses RBTC, pegged to Bitcoin, ensuring stable value for gas and transactions. Developers who build on Rootstock align with the rapidly growing Bitcoin ecosystem, fostering trust and accessibility for Bitcoin first users.

In Conclusion

Rootstock offers a compelling alternative to Ethereum by combining the security of Bitcoin with the flexibility of smart contracts, all at a fraction of the cost. By choosing Rootstock, developers can reduce their operational expenses, attract a broader audience, and focus on innovation without worrying about prohibitive gas fees. As we advance with blockchain technology towards mainstream adoption, Rootstock prioritizes cost efficiency and scalability well positioned to lead the way.

Rootstock is more than just an alternative to Ethereum L2s; it is the developers dream between Bitcoin security and Ethereum smart contract flexibility. For developers looking to build scalable, affordable, and decentralized dApps while tapping into Bitcoin liquidity and ethos, Rootstock is the standout choice.

For developers looking to build the next generation of dApps, Rootstock is not just an alternative; it is an advantage.