Analyst Juan Villaverde raised the hypothesis that Bitcoin is killing Ethereum.
The battleground is smart contracts. To date, in fact, not only is Ethereum a network natively equipped with smart contracts, but these are in fact also the main reason for its success.
The Bitcoin blockchain, on the other hand, does not natively support smart contracts and the primary reason for the success of BTC is certainly to be considered more and more like digital gold.
But Villaverde questions this dichotomy, saying that:
“La regina delle criptovalute potrebbe diventare essa stessa una piattaforma per smart contract”.
The analyst notes that, if on the one hand Ethereum is now a platform for the execution of an infinite variety of applications, called smart contracts or dApps, on the other hand, however, its network would now be congested.
The reduced capacity and low speed of the Ethereum network in the execution of transactions would counteract an ever-increasing demand for transactions, so much so that many believe that some more scalable alternative could spread.
According to Villaverde, this alternative would be Bitcoin, thanks to sidechains like RSK.
Being able to count on the blockchain and the most important cryptocurrency in the world, projects like RSK would have all the credentials to become among the major competitors in the fight between platforms to support smart contracts or dapps.
Villaverde describes Bitcoin as the main highway on which we simply move or store value, while sidechains like RSK would be parallel freeways to do the rest.
In this scenario, the Bitcoin blockchain always remains the same, with its miners who will continue to mine BTC, but another is added based on the first, with its reference cryptocurrency (RBTC) and its miners.
RBTC would simply be a form of Bitcoin used for the execution of smart contracts on RSK. This way, in fact, Bitcoin owners can run dApps.
To tell the truth, to date it does not seem that RSK has managed to scratch Ethereum's dominance regarding smart contracts and dApps, so much so that for some time now the number of daily transactions on the Ethereum blockchain has largely exceeded those on the Bitcoin blockchain, but according to the analyst RSK it is destined to be successful.
In particular, he claims that the DeFi instruments of decentralized finance could be among the first to pass on Bitcoin's sidechain, although in reality today DeFi continues to be unquestionably dominated by Ethereum.
However, RSK, for example, has a lot in common with the Ethereum code, so much so that anything that is currently running on Ethereum could work just as well on Bitcoin. In addition, DeFi's dApps currently mainly use ETH as a guarantee reserve, while they could take advantage of using BTC for the same purpose instead.
Villaverde takes the example of DAI, arguing that if it had BTC as a collateral instead of ETH it could have a wider diffusion.
For these reasons, it suggests that Bitcoin could kill Ethereum and become the main platform for smart contracts and dApps, although in reality to date there is no evidence that this replacement process is taking place.
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