What is the Rosetta Network?
Rosetta is a Bitcoin Layer 2 Inscription Network, designed to address challenges pertaining to the verifiability, interoperability, and practical utility shortcomings inherent in the Inscription and BRC-20 protocol.
The Rosetta protocol stack is structured into four layers: Bitcoin Layer, Inscription Layer, BRC Layer, and Application Layer, arranged in a bottom-to-top hierarchy. The following graphical representation illustrates this architecture.
- The Bitcoin Layer utilizes the robust network secured by all Bitcoin miners to ensure permanent data storage for the Inscription and BRC-20 protocol.
- The Inscription Layer is a supplementary protocol based on the Ordinal Theory, associating inscriptions with each $Sat.
- The BRC Layer builds upon the Inscription Layer, providing a token protocol that updates token balances through predefined operations on inscriptions.
- The Application Layer encompasses applications centered around BRC-20 tokens.
Before the introduction of Rosetta, both the Inscription Layer and BRC Layer were defined artificially by Ordinal Theory and BRC-20 Protocol, controlled by centralized data indexers. Despite inscription data being recorded on the Bitcoin ledger, off-chain logic for resolving inscriptions and updating BRC-20 token balances presented verification challenges. Additionally, the absence of smart contract support in the Bitcoin network hindered the establishment of an application ecosystem around BRC-20 tokens.
What Benefits does Rosetta Network bring to Bitcoin?
- Cross-chain Interoperability: The Rosetta Bridge, operating on a decentralized cross-chain protocol, facilitates interoperability and enables Turing-complete smart contract functionality for BRC-20 tokens, opening up numerous opportunities for the BRC-20 token application ecosystem!
- Strengthened Consensus Framework: Rosetta introduces decentralized data indexers, supported by Bitcoin miners, forming a consensus network. This guarantees that both the Inscription Layer and BRC Layer benefit from the security of the Bitcoin network.
- EVM Compatibility: Rosetta enables Bitcoin to seamlessly integrate with the Ethereum Virtual Machine (EVM) and its surrounding ecosystem, enhancing compatibility and interoperability between the two networks.
What are the Rosetta Network's main use cases?
- Gaming
- DeFi
- DAOs
