Rootstock Boosts Bitcoin DeFi Security, Cuts Fees 95%
1min read Decentralized finance (DeFi) on the Bitcoin blockchain, while still in its early stages compared to Ethereum, is becoming more secure and cost-effective. This development is largely attributed to the contributions of Rootstock, one of the oldest Bitcoin layer-2 projects, as highlighted in a recent report by crypto analytics firm Messari.
Ask Aime: What impact will Rootstock's advancements have on blockchain security and DeFi adoption?
Rootstock has significantly enhanced its security by leveraging 81% of Bitcoin's total hashrate. This means that miners responsible for this substantial portion of the hashrate are also validating transactions on the layer-2 network. This figure represents a notable increase from the previous 56% before the integration of Foundry and Spiderpool, the world's largest and sixth-largest mining pools, respectively, in February.
In addition to security improvements, Rootstock has made significant strides in reducing transaction costs. Transaction fees on Rootstock are now 95% cheaper than the average Bitcoin transaction and 55% cheaper than those on Ethereum. This cost efficiency is a major draw for users and developers looking to leverage DeFi applications on the Bitcoin network.
Rootstock is part of a broader effort to enhance Bitcoin's utility through the expansion of DeFi capabilities. This is achieved through smart contracts enabled by "BitVMX," a modified version of the BitVM programming language. Other notable Bitcoin layer-2 projects include Stacks and BOB ("Build on Bitcoin").
Rootstock has also formed a strategic connection with the bridging protocol LayerZero, allowing Rootstock-native applications to interact with dozens of other blockchains, including Ethereum and Solana. This interoperability is expected to drive further adoption of BTCFi throughout the remainder of 2025, according to Messari.
Messari analyst Andrew Yang noted that as BTCFi continues to grow, Rootstock is well-positioned for broader adoption. This is due to core upgrades such as a 60% reduction in transaction fees, along with sustained investment in builder education and incentive programs. These developments are set to make Rootstock an even more attractive platform for DeFi applications on the Bitcoin blockchain.
