What is RGB and what are the possible use cases. Discussion in this presentation by Maxim Orlovsky and Federico Tenga at Viareggio Lightning Summit 2023.
To dowload the slides
Some informations from rgbfaq.com
What is RGB
RGB is client-side validated state and smart contracts system operating on Layer 2 and 3 of Bitcoin ecosystem.
- RGB is not a token protocol. Though issuance and management of highly scalable, programmable and private assets of different sort is possible with RGB, it can be applied in many indusrtied far beyond financial world.
- Works with Lightning Network
- No on-chain usage nor trackable footprint because of client-validated paradigm
- Scales independently from Bitcoin timechain
- Includes zero-knowledge & privacy built on best research-based products: Mimblewhimble: Bulletproofs by Andrew Poelstra, Liquid: Confidential Assets by Blockstream
- No bitcoin timechain congestion: transactions keep only homomorphic commitments which require no additional storage
- Future-ready without hardforks
- Higher censorship-resistance than in bitcoin: miners do not see that there is something going on with assets in transactions
RGB main features
- able to manage rich state
- uses client-side validation paradigm offered by Peter Todt where the data is held by a “state owner” (like asset owner) and not by public consensus
- Operates on top of Bitcoin transaction graph, either from Bitcoin blockchain, or Lightning channel (or any other kind of state channel). Can work on top of Bitcoin as Layer 2 solution and on top of Lightning Network as Layer 3 one
- Can be scripted with Turing-complete formally-verified
Simplicity scripting language by Blockstream (once it’s released)
Basically, RBG is a digital rights management system. Issuance, burning, secondary issuance, reissuance etc – are different forms of rights managed by RGB, alongside asset ownership rights. How these rights are structured and managed is defined by particular RGB Schema. Rights are controlled by Bitcoin script in Bitcoin transaction output; i.e. whoever can spend the output, has/owns the right, which was assigned to that output. Assignments are done with the current right owner; i.e. in case of genesis, is the issuer.