The RGB protocol, like Ethereum, is a Turing-complete smart contract platform based on Bitcoin. This means developers can build complex smart contracts, enabling the issuance of fungible and non-fungible tokens, as well as the creation of decentralized applications (dApps) and decentralized autonomous organizations (DAOs).

introduce

The RGB protocol stands for “Really good for Bitcoin”, with the original goal of improving colored coins “Colored Coins”. It is a smart contract-based layer 2 (L2) and A Layer 3 (L3) protocol, built on top of the Bitcoin Base Layer (LNP/BP) and the Lightning Network,designed to extend Bitcoin transactions and provide enhanced transaction privacy.

RGB was originally proposed by Peter Todd and Giacomo Zucco in 2016. Since mid-2019, the main contributors to the project are Dr. Maxim Orlovsky and Pandora Core AG. Based on the Swiss non-profit LNP/BP Standards Association standard established by Dr. Orlovsky and Dr. Zucco in 2019, the RGB protocol launched on mainnet in June 2023.

The RGB protocol, like Ethereum, is a Turing-complete smart contract platform based on Bitcoin. This means developers can build complex smart contracts, enabling the issuance of fungible and non-fungible tokens, as well as the creation of decentralized applications (dApps) and decentralized autonomous organizations ( DAO). This article will start with representative projects in various subdivisions with potential based on the RGB protocol.

DAO——LNP/BP Association

LNP/BP stands for “Bitcoin Protocol/Lightning Network Protocol”,RGB Protocol Core Team built a non-profit organization based on this protocol ——LNP/BP Association, responsible for overseeing the development of all layers of Bitcoin. The mission of the association is to create and maintain standards in a standardized manner, develop libraries, nodes and tools, implement open source parameters; conduct community education and ensure that community values ​​are consistent. The association’s values ​​include resistance to censorship, privacy and layering.

LNP/BP Association products cover three main verticals:

• Bitcoin Protocol (BP);
• Client-side verification enhancements for Bitcoin components, Lightning Network Protocol (LNP);
• Generalization of the Lightning Network that supports advanced functions, smart contracts (RGB, etc.), enabling client-side verification of programmability.

Currently, the only official way to join is through contribution support, which allows any for-profit company, non-profit organization, DAO or individual to become a member of the association. All units and individuals who are willing to become members should make contributions that may include financial contributions, as well as contributions to the specifications, standards and design of the association’s projects.

https://www.lnp-bp.org/

NFT(UDA) MarketPlace - NO

While NFTs were thrust into the spotlight in late 2020, many are unfamiliar with the origins of artwork and assets on the blockchain that began with Bitcoin—from 2011’s Message from the Mines to the Colored Coin Proposal 》, it can be said that Bitcoin is the beginning of all NFT technologies.

DIBA is the first trading market to create, collect and trade NFTs directly on Bitcoin using the UTXO model and RGB protocol (Bitcoin smart contract protocol), building decentralized applications on Bitcoin and the Lightning Network. Founder Gideon Nweze said: “Bitcoin Art is a Trojan horse that will bring real utility to the financial system of the future… It will drive the mass adoption of censorship-resistant digital property rights. When we start with decentralized, transparent and honest As we build our future, art will be the common denominator for everyone everywhere.”

Artists can create digital assets on Bitcoin through DIBA. “The use of art as a key to change and adoption is a well-known movement, and I see a future where everyone can have equal opportunity to own valuable unique digital assets and participate in the economy while running their own Lightning node,” Gideon Nweze said.

The DIBA ecosystem allows users to collect digital artists tied directly to Bitcoin UTXOs (Unspent Bitcoin Transaction Outputs) using RGB’s client-verified smart contract system through a tokenless Bitcoin layer 2 scaling solution. The DIBA ecosystem is contributed by the LNP/BP Standards Association and Dr. Maxim Orlovsky and Dr. Olga Ukolova (Pandora Core) who collaborate with the agency.

At the same time, all digital assets accept the upgraded version of Taproot (Taproot upgrade is the most significant upgrade of the Bitcoin network since 2017. After the upgrade, it improves Bitcoin’s privacy, smart contract functions, and reduces transaction costs).

https://diba.io/

Infrastructure - Bosnia and Herzegovina

Satoshi Nakamoto wrote in a 2010 email in a private conversation with members of the Bitcoin community: “I am very convinced that in 20 years, Bitcoin will either achieve full mass adoption or have zero transaction volume.”

BiHelix is ​​a Bitcoin ecological infrastructure based on the Bitcoin native blockchain, combining the RGB protocol and the Lightning Network to build optimized nodes. Based on realizing large-scale application of Bitcoin, BiHelix combines the Lightning Network to introduce business models and incentive mechanisms for RGB, and promotes the engineering implementation of the RGB protocol by building a Turing-complete application ecological network. Through the establishment of a smart contract platform, the long-standing “non-Turing complete” problem of Bitcoin scripts is solved, allowing more applications to run on the Bitcoin blockchain. As the first infra built on the RGB protocol, it aims to create a fairer decentralized encryption world for miners, verifiers, node service providers, exchanges, and users.

Method to realize:

• Optimize the RGB protocol to make it better compatible with the Lightning Network, thereby increasing the scalability of the Bitcoin blockchain.
• Leverage native economic incentives and commerce to attract miners and developers to develop smart contracts on BiHelix.
• Optimize the connection between RZK (recursive zero-knowledge), storage, communication and other protocols and the RGB protocol to make it a complete underlying ecosystem.

https://linktr.ee/bihelix

Wallet - Bitmask

BitMask is an open source, multi-signature Bitcoin wallet that emphasizes privacy, security and decentralization. It allows users to retain control of their private keys while still enjoying the convenience of a web wallet.
Main functions:

• Multi-signature security - BitMask uses a 2-of-3 multi-signature setup. Transactions require 2 signatures to be valid to protect funds in case one of the keys is compromised
• Hierarchical deterministic (HD) key generation - keys are derived from the root seed in a tree structure, allowing unlimited address generation while only backing up the seed
• Decentralized Verification - Transactions are verified client-side rather than on BitMask’s servers for better privacy
• Tor Integration - All traffic is routed through Tor to hide the user’s IP address
• Open Source Code - BitMask’s code is fully open source for transparency and auditability
• Encryption Technology - User data is encrypted using AES-256 symmetric encryption and RSA-2048 asymmetric encryption

BitMask offers benefits including allowing users to control their own keys, off-chain transaction verification to protect privacy, and multi-signature security to prevent theft or loss. Provide convenience without compromising privacy or financial control. In general, BitMask’s target users focus on higher security and privacy than traditional centralized network wallets. It is the earliest and largest contributor to the RGB protocol.

https://linktr.ee/bitmaskwallet

RGB Explorer——RGBex

Supports searching RGB smart contracts by code/asset name/contract ID/mode ID/interface name on Bitcoin and Lightning Network.
The functions mainly include:

• Asset interface: RGB smart contracts provide API interfaces through wallets, exchanges and other software to interact with the world. They define types of assets and contracts, such as tokens, NFTs, DAOs, identities, etc.
• Smart Contract Schemata: A “template” for creating smart contracts and issuing assets. They allow to separate the role of the programmer from that of the contract and asset issuer and reduce the risk of designing the contract.
• Release: RGB smart contracts can be developed in Rust using the RGB standard library.

https://rgbex.io/assets

Conclusion

Although the RGB protocol is still in the early stages of development, time will tell as RGB leverages Bitcoin’s strong security and decentralization features to provide users with more benefits than the more popular L2 smart contract-centric Bitcoin protocol. A more reliable asset issuance solution. This deep integration creates a more transparent, trustless asset issuance process for users and is expected to bring greater reliability to the ecosystem. Its synergy with Bitcoin and its advantages in asset issuance and DeFi make it expected to become an integral part of the Bitcoin ecosystem. We can look forward to how the RGB protocol will demonstrate its role in promoting assets within the Bitcoin ecosystem in the future. A stronger value proposition in areas such as issuance and DeFi will play a more important role and bring more innovation and prosperity to the Bitcoin ecosystem.

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