The Reed Network Upgrade is now live on Rootstock mainnet, marking a major milestone for Bitcoin’s first and longest-running smart contract layer. Reed strengthens the PowPeg, reduces peg-out costs by 60%, and lays the foundation for the next generation of trust-minimized Bitcoin bridging.
This isn’t just a technical upgrade, it’s a leap forward in Rootstock’s mission to scale Bitcoin without compromising its core principles of decentralization, openness, and security.
Key Highlights of Reed
60% Cheaper Peg-Outs with Segwit PowPeg
Reed will allow for a new PowPeg composition change that activates Segregated Witness (Segwit) support for the PowPeg, cutting BTC peg-out costs by 60%. This makes Rootstock more accessible and capital-efficient, reducing the cost of moving Bitcoin back to mainnet and improving the user experience across BTCFi applications.
This comes on the heels of the Lovell upgrade, which cut Rootstock transaction fees by 60%, continuing the momentum of making Rootstock faster, cheaper, and more efficient for users and developers.
Stronger Decentralization with More PowPeg Pegnatories
Reed will allow for an expansion of the maximum number of PowPeg pegnatories from 9 to 20, paving the way to reach 60 pegnatories in the future.
More pegnatories = more decentralization, less reliance on any single entity, and stronger guarantees for Bitcoin assets moving between Bitcoin and Rootstock. This reinforces Rootstock’s vision of a trust-minimized bridge.
Next-Gen Bridging and Parallel Execution on Testnet
While Reed activates key features on mainnet, it also opens the door for developers to experiment with next-gen innovations on testnet with Precompiled Cryptographic Contracts (RSKIP-516). These contracts aim to improve the efficiency of cryptographic operations (Secp256k1), lowering gas costs for dApps and DeFi protocols.
Mainnet activation of these testnet-first features is targeted for Vetiver Upgrade in early 2026.
What’s next
- Union Bridge (RSKIP-502): A trust-minimized, verifiable bridge powered by BitVMX. Union integrates with the PowPeg to enable secure rBTC transfers, setting the stage for the most secure and decentralized Bitcoin bridge yet.
- Parallel Transaction Execution (RSKIP-144): Enables multiple contracts to run simultaneously instead of sequentially, improving throughput, reducing congestion, and making Rootstock more scalable.
Why Reed Matters
- More Affordable: 60% cheaper peg-outs make Rootstock more accessible and user-friendly.
- More Decentralized: Allowing for an increase in PowPeg pegnatories strengthens Rootstock’s trust-minimized foundation.
- Future-Proof: Reed sets the stage for the upcoming Union Bridge and parallel execution, unlocking institutional-grade Bitcoin DeFi.
- Roadmap Momentum: Demonstrates steady progress toward Rootstock’s vision of scaling Bitcoin securely and trustlessly.
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