The RGB protocol is based on client-side verification proposed by Peter Todd in 2016, a client-side state verification and smart contract system that runs on the second and third layers (off-chain) of the Bitcoin ecosystem.
The basic layer of the RGB protocol is the Bitcoin blockchain, including the Satoshi PoW consensus and transaction ledger. While it does not require any data to be stored on-chain, it still follows existing infrastructure, utilizing Bitcoin transactions as the repository for these commitments. This is accomplished by building upon the Bitcoin protocol layer, laying the foundation for client-side verification.
RGB development history
Let’s take a brief look at the development history of RGB:
2016: Giacomo Zucco originally conceptualized the RGB protocol, inspired by Peter Todds ideas.
2017: BHB Network launches the original version of the RGB protocol, supported by the Poseidon Group.
2019: Maxim Orlovsky and Giacomo Zucco established the LNP/BP Standards Association to promote RGB towards practical applications. Dr. Maxim Orlovsky began redesigning the RGB protocol.
2021: The association demonstrates RGB’s Turing-complete virtual machine (AluVM), and RGB starts running on the Lightning Network.
2022: Introducing Contractum, a new language for writing RGB smart contracts for Bitcoin and the Lightning Network, and its new website.
April 2023: RGB v 0.10 is released, bringing comprehensive smart contract support to Bitcoin and Lightning Network, marking an important development stage of the RGB protocol
In fact, RGB was born very early, but there has been no ecological project hype. The reason is because there are few ecological projects and the BTC ecological development is too slow. But this year is different from the past. Every protocol in the BTC ecosystem has been dug out for speculation and attention. For details, please see our previous article.
So with the help of this east wind, the big ship RGB can ride the wind and waves and set sail.
Why do we focus on the RGB track first? The main reason is that there are currently many projects on this agreement that are about to be launched. Compared with other agreements, the action is faster. The fastest projects may be online for trading by the end of the month. And everyone should know how powerful the concept of smart contracts is. Ethereum has created two bull markets with its smart contracts.
So let’s take a look at RGB’s ecological projects worth paying attention to:
LNP/BP Association
The LNP/BP Association is a non-profit organization that oversees the development of all layers of Bitcoin. The associations products cover three main vertical areas: client-side verification enhancements for the Bitcoin component of the Bitcoin Protocol (BP); Lightning Network Protocol (LNP) to support advanced features Generalization of the Lightning Network; smart contracts (technologies such as RGB that enable greater programmability with client-side verification).
The association’s sponsors and contributors:
Bitfinex Tether are very supportive of the RGB protocol and are currently the largest ecological participants. In October this year, Tether CEO publicly stated that the RGB protocol represented the “best opportunity” to issue stablecoins on Bitcoin.
They are currently accepting donations without any return. For details, please see; https://btcpay.lnp-bp.org/btcpay/apps/XoNQvS2C2ePC2nWuRm3qajUWGkV/crowdfund
Their goals for future development efforts in 2023 include:
Improving better RGB developer documentation and educational materials
Complete the integration of RGB smart contracts and Lightning Network
Contractum: The RGB programming language. Templates for the main types of RGB smart contracts: Fungible Tokens, NFTs, Decentralized Identity.
Further development of Lightning Network extensions (Bifrost), including support for channel factories, channel composability, and the use of Schnorr signatures/Taproot
BiFi protocol is built on LN and RGB, including DEX, liquidity pool and AMM.
DIBA and bitmask
These two projects belong to the same company. Let’s talk about them together. They are also the fastest-moving RGB ecological projects at present, and they are also projects that we are relatively optimistic about. After all, they have seized the opportunity and are likely to develop into leading projects in the future.
Let’s talk about DIBA first. It is a Bitcoin NFT market that allows users to trade any assets issued by Bitcoin smart contracts on layer 2 networks (such as the Lightning Network). DIBA has also partnered with crypto miner Hut 8 Mining (HUT) to release a Bitcoin-only wallet. Here we think this wallet is bitmask.
Hut 8 Mining has a great background. It is one of the largest digital asset miners in North America. In June this year, Bitcoin mining company Hut 8 merged with US Bitcoin Corp to form a new company, New Hut, which went public.
With the digression out of the way, lets continue to introduce DIBA. The diba journey started in 2021, and it wasnt until this year that it really stood out.
DIBA is working on “Really Right for Bitcoin” (RGB) smart contracts built on a layer 2 network. DIBA co-founder Gideon Nweze said in a statement that the RGB protocol allows for cheaper and more private transactions, making it easier to issue Bitcoin tokens.
Among the investors in DIBA, for example, the famous venture capitalist Tim Draper is a well-known venture capital godfather in Silicon Valley and founded well-known investment institutions such as DFJ Venture Capital, Draper Associates, and Draper University.
BitMask Wallet: Browser extension for decentralized applications on Bitcoin. Use RGB protocol to access Bitcoin Finance, NFT (UDA), website:https://bitmask.app/
Bitmask wallet creation tutorial:https://bitmask.app/#/blog/BitmaskonChrome
You can pay more attention to project developments in the near future, and the RGB asset market will be launched at the end of the month or early next month.
PePe-RGB and Single-Use-Seal
PepeRGB is the first RGB project to issue tokens. The current off-site whitelist is about 300 U. I think what needs to be criticized is that the name is not original enough. The project vision is to create a social metaverse where users can use the Lightning Network to exchange real goods and Services, will not involve land sales, but focus on social interaction and building a business.
At present, it seems that it is still far away from realization, and we still have to wait.
Total: 21, 000, 000
Fair launch: 19,000,000 (90.5%)
Leaflets: 1000
Team Retention: 2,000,000 (9.5%)
Works with bitmask wallet.
Single-Use_Seals is an RGB native project, the first 10k PFP NFT. The heat is also relatively high.
Bitlight Labs（Cosminmart）
Bitlight Labs develops infrastructure based on the RGB protocol and deploys multiple applications on the Lightning Network. Among them are Bitswap and Bitlight wallets. The establishment of this ecosystem provides users with more ways to trade and interact, enabling faster and maximum transactions.
Features:
1. A smart contract system capable of managing rich states
2, using Peter Todds client-side validation example: data is held by a state owner (like an asset owner) rather than by public knowledge.
3. Operations in the above chart of Bitcoin transactions can come from the lightning channel of the Bitcoin blockchain.
4, scripts can be written using Blockstream’s Simplicity scripting language that has been formally verified by Turing arguments.
Infinitas
Infinitas is a Bitcoin application ecological network that integrates the RGB protocol and the Lightning Network, aiming to achieve higher privacy protection, excellent throughput and excellent low-latency transaction processing.
It is said that Infinitas will have an incentive plan for its native economy, and will use mining to generate market output in the early stage to promote the long-term development of the ecosystem.
Pandora Prime Inc
Products: MyCitadel (wallet), RGB Explorer (browser) and Pandora Network, disadvantages are not for public use
You can mainly pay attention to dibas progress, because they will be online soon, and there will be great opportunities. After all, it is the first project of the RGB track, as well as the first token and NFT.
