I have been playing around with RSK (Smarter Bitcoin) and Sovryn, the decentralized exchange, and trying to find ways so that people with very little money can participate and find out the best alternatives for those who are less fortunate don’t have many funds at hand.
Pretty much now, you can use Lightning Network to save on fees when moving assets from one network into another. My lowest transaction was $10, so anyone with at least $10 can participate on RSK. I had to withdraw my Bitcoin Cash that I earn from writing into LN, by utilizing a custodian to receive my funds, so to exchange into Bitcoin, I had to use a custodian because I don’t have a channel of my own, nor the need to create one at this moment.
Once I receive my funds on the Wallet of Satoshi, I send those funds into the bridge and claim the rBitcoin once my funds have been put into the contract, and so that way I can move my funds from on-chain to once again into a sidechain. If you have funds sitting on SmartBCH, you will have to convert them into regular Bitcoin Cash, and from there, into Bitcoin LN. And the same process is when going out from RSK into whatever other altcoin you may need.
If you don’t have much money now, it is possible to participate in a decentralized exchange that utilizes Bitcoin. You can exchange without the need to move funds into a custodian that may register how much money you have and where it is going. At least for Salvadorians now, they can transfer funds much easier because they have their funds on custodians already. They are moving from custodians into a Bitcoin sidechain.
You won’t be able to yield farm with $10 funds because the transaction fee to claim your rewards is just too expensive at this moment; it cost 0.00036 to claim your compensation, but that cost will eventually decrease once developers can fix that high cost, by improving the smart contract interaction. Still, with $10, you will be able to buy and sell tokens without much of a few for swapping your money once inside the RSK network, and getting into RSK won’t be that expensive if you are willing to use a Lightning Network custodian for just 30 minutes.
I could see it in the future needing a Lightning Network channel if you plan to move funds a lot from and to RSK. I guess that will be my next article; how fun it is to create a channel and use it to move funds now without any custodian and utilizing LN together with RSK and without any custodian whatsoever. Obviously, for that, you will need at least 0.004 to 0.01 BTC to make it worth your channel and fees.
The post was published first on read.cash by me.