Bitcoin holders can use DApps without sacrificing asset security — Here’s how

Rooch Network offers a native non-custodial application layer for Bitcoin, allowing users to interact with decentralized apps while maintaining full control of their assets.

Bitcoin ( BTC ) has long been regarded as the gold standard among digital currencies, often seen as a store of value rather than a tool for interactive applications. While Ether ( ETH ) has become the dominant force in Web3 and decentralized applications (DApps), Bitcoin’s utility in these key areas has remained limited. This gap represents a dilemma for Bitcoin enthusiasts who wish to do more with their BTC than just hold it as an investment.

Many users remain cautious about existing DApp solutions due to the security risks and privacy concerns inherent in third-party custodial wallets and services, such as hacks or unauthorized access to private keys. As demand grows for solutions that offer both utility and safety, Rooch Network — a native application layer for the Bitcoin ecosystem — emerges as a relevant option, allowing users to interact with DApps without relinquishing control over their assets.

Source: Rooch Network

Rooch Network aims to change how Bitcoin users interact with DApps by developing a native application layer for Bitcoin. Unlike other solutions, Rooch enables users to maintain full custody of their assets while interacting with various Bitcoin-based applications.

Using Bitcoin in DApps without relying on custodial wallets

Most existing solutions require users to transfer their BTC to custodial wallets or depend on bridges, creating potential security vulnerabilities. Rooch Network’s non-custodial framework eliminates these risks by allowing Bitcoin holders to interact with DApps directly from their wallets without surrendering control of their private keys. This fundamental feature adds a layer of security that is particularly appealing to risk-conscious users.

Rooch is powered by a unique stackable layer-2 (L2) architecture designed to enhance the scalability and security of Bitcoin applications. This L2 framework allows for more efficient processing of transactions and data, making it possible to build more advanced and scalable applications on top of Bitcoin. For instance, decentralized exchanges or complex smart contract operations could run more efficiently on this architecture.

BTCFi ecosystem opportunities

Beyond scalability, Rooch Network’s stackable L2 architecture offers yield-generating opportunities for BTC holders. By integrating with Babylon Finance , a self-custodial Bitcoin staking protocol for securing proof-of-stake (PoS) blockchains, Rooch enables users to earn additional returns in a non-custodial manner.

This approach contributes to the evolving BTCFi ecosystem, an array of financial applications and products built around Bitcoin, designed to expand its utility beyond basic transactions and storage. Examples include prediction markets, onchain credential systems and digital asset gamification platforms. These applications can natively engage BTC holders, offering them opportunities to participate and generate yields in a secure, non-custodial manner.

How Rooch Network’s non-custodial yield system works. Source: Rooch Network

From a technical standpoint, Rooch Network utilizes MoveVM, a virtual machine designed to serve as a flexible software layer for developing and executing applications. Unlike other virtual machines, such as Ethereum Virtual Machine (EVM), which are based on the account model, MoveVM is better suited for Bitcoin’s native unspent transaction output (UTXO) model. This avoids the programming challenges developers often face when working with smart contracts on Bitcoin.

Additionally, from an ecosystem perspective, MoveVM is an asset-oriented language designed to provide maximum expressiveness and flexibility when interacting with both existing and emerging assets on Bitcoin. This unique approach unlocks the potential for novel Bitcoin-based DApps.

Transitioning Bitcoin from a passive asset to a digital tool

Rooch Network co-founder Haichao recognizes the value of Bitcoin as a store of value in the digital form with infinite utility potential. “We are here to be the pioneer of exploring its utility and pave the way forward, by providing the infrastructure for all the other builders,” Haichao added.

Rooch Network has recently launched its public testnet , giving users the opportunity to explore Bitcoin applications built on its unique L2 architecture. Following the launch of testnet v0.7, Rooch Network is gearing up for its pre-mainnet launch, where Rooch plans to introduce a series of incentivizing campaigns demonstrating the full potential of its network.

By offering a native application layer for Bitcoin that operates in a non-custodial manner, Rooch Network allows users to engage with DApps while maintaining control over their assets. As the platform continues to develop, it has the potential to shift Bitcoin’s role from a passive store of value to an active participant in the evolving landscape of DApps, offering a new chapter for BTC’s utility.