RSK, the startup that has been developing a technology allowing to bring ethereum-style smart contracts to Bitcoin network, has reached an early milestone. The sidechain called “Lumino” that uses so-called “smart-bitcoins”- a separate version of bitcoin with the smart contract capability – is currently capable of processing 100 transactions per second, as stated today by RSK Labs co-founder Gabriel Kurman at CoinDesk’s Consensus 2018 conference.
Lumino project approaches the Bitcoin network scalability problem through bringing together the ideas of the developers who have been working on Lightning Network and Raiden Network (the former being compatible with Bitcoin blockchain and the latter with Ethereum blockchain).
“Before the end of the year, we hope to launch the Lumino network, which will allow for 20 000 transactions per second,” – Kurman promised.
First launched in January 2018, this sidechain pegged to bitcoin was admittedly limited in that it’s not pegged to bitcoin in a “trustless” way advocates have promised for so long. Rather, anyone who wants to move their bitcoin to the sidechain needs the approval of a ‘federation’ group of third parties.
The project is, nevertheless, much supported by bitcoin miners. This is due to the fact that the sidechain is designed to be “merged-mined”. In other words it allows miners to get transaction fees by contributing their hash power to the sidechain, while using the same equipment, electricity and power they’re already using to mine bitcoin.
“RSK has massive support from the mining ecosystem because it adds a new revenue stream for them,” Kurman said.
“It’s a major announcement for bitcoin as a whole. This 10 percent is coming from 80 percent of the total mining pool power,” – he specified.