Compared to new-generation blockchain platforms like Cardano, Ethereum or Solana, Bitcoin was never intended to host applications on its base layer.
Bitcoin’s core architecture is as simple as it gets, which makes building anything on it difficult, at least until now.
Without getting overly technical, Turing completeness is a concept that denotes a machine’s ability to solve complex computations.
Ethereum uses a Turing-complete scripting language, meaning it can be adapted to different uses.
Another problem with Bitcoin development is the low throughput of the base layer.
Currently, Bitcoin processes around five to seven transactions per second, partly due to limits on its block size.
One solution would be to create a system that benefits from Bitcoin’s qualities, but extends the functionality of the base layer.
Unless a radical change happens, Bitcoin’s base layer won’t change to allow for the development of complex applications.
Rather, building on the Bitcoin blockchain is possible by employing scaling solutions that aim to improve the system’s scalability and functionality.
With the Lightning Network, you can open a “channel” between you and Joe to process the payment.
When the transaction ends, both parties can agree to close the channel and have the final state recorded on the blockchain.
Another popular application built with Lightning Network is LightNite, a multiplayer battle-royale game similar to Fortnite.
The Rootstock Virtual Machine is similar to the Ethereum Virtual Machine, which facilitates the execution of smart contracts.
According to estimates, the Rootstock blockchain may be able to handle up to 100 transactions per second, which is way higher than Bitcoin’s current throughput.
Stacks differs from the other solutions on this list, as it’s not a Layer 2 scaling solution.
All transactions conducted on Stacks or Stacks-based applications are settled on the Bitcoin blockchain, boosting Stack’s security.
If you want an in-depth description of Stacks, read this article from the Stacks Foundation.
And there aren’t that many hackers out there ready to make that kind of investment, so we can rule out the possibility of a Bitcoin hack.
Although Bitcoin isn’t traditionally suited to running complex applications, newer solutions make it easy for developers to run DApps on the platform.