<p>Yes. Given that many applications for smartcontracts would have vastly diverging blockspace and interaction frequency requirements from the payment usecase, segregating such usecases onto sidechains or second layer networks with different performance trade-offs seems like a promising approach. There are already tentative beginnings of such a development. You may find it interesting to read for example more about:</p>
<ul>
<li>RSK</li>
<li>Liquid</li>
<li>Lightning Network</li>
<li>Discreet Log Contracts</li>
<li>Etleneum</li>
<li>Simplicity</li>
<li>RGB</li>
<li>Drivechains</li>
<li><code>OP_CHECKTEMPLATEVERIFY</code></li>
</ul>

CC BY-SA 4.0
2021-08-25T17:15:34.597Z
2022-07-07T11:09:29.680Z
2022-07-07T11:09:29.680Z
Murch
<p>I am not even personally convinced of the utility of smart contracts, but that aside, is it theoretically possible for a side chain or second layer solution to utilize/implement smart contracts? Ie is there is possibility that the 'DeFi' space eventually transitions to simply being a 2nd layer solution on the BTC network instead of on ETH, etc...? Not so much asking about likelihood, just feasibility given the structure of the BTC network and what is possible with sidechains/2nd layer solutions.</p>

<smartcontracts><sidechains>
Can smart contracts be set up on a side chain or 2nd layer solution?
Runeaway3
# Can smart contracts be set up on a side chain or 2nd layer solution?

(Asked by: username_0 on 2021-08-25)

I am not even personally convinced of the utility of smart contracts, but that aside, is it theoretically possible for a side chain or second layer solution to utilize/implement smart contracts? Ie is there is possibility that the 'DeFi' space eventually transitions to simply being a 2nd layer solution on the BTC network instead of on ETH, etc...? Not so much asking about likelihood, just feasibility given the structure of the BTC network and what is possible with sidechains/2nd layer solutions.

**Tags:** smartcontracts, sidechains


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## 1 answers

### Answer by username_1 on 2021-08-25. Score: 4 | Accepted answer

Yes. Given that many applications for smartcontracts would have vastly diverging blockspace and interaction frequency requirements from the payment usecase, segregating such usecases onto sidechains or second layer networks with different performance trade-offs seems like a promising approach. There are already tentative beginnings of such a development. You may find it interesting to read for example more about:

* RSK
* Liquid
* Lightning Network
* Discreet Log Contracts
* Etleneum
* Simplicity
* RGB
* Drivechains
* `OP_CHECKTEMPLATEVERIFY`


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