RGB Protocol, which is a smart contract system and an asset-issuance platform, announced that it has launched its mainnet Bitcoin network. This allows tokenized assets such as stablecoins and non-fungible (NFT) tokens to be used within the Bitcoin ecosphere.
The protocol was held on Thursday. announced Tokenization tools were now available, allowing Bitcoin users and Lightning Network users to send digital assets and create them.
According to the protocol, it allows new tokenization features on top of its network while maintaining decentralization principles, privacy, and self-custody.
RGB relies on client-side verification, meaning that the asset data will be processed by and checked by users. The asset activities are kept off-chain, while the proofs of Bitcoin transactions remain. This allows privacy to be preserved and minimizes blockchain bloat.
RGB Protocol to Bring USDT to Bitcoin
Viktor Ihnatiuk, founder and CEO of Boosty Labs told Cointelegraph the USDT stablecoin from Tether will be RGB’s first use case in real life for secure, scalable transfers using Bitcoin.
Ihnatiuk, when asked about the benefits for USDT users of this Lightning Network compatibility, said that they would enjoy cheap and fast transfers on Bitcoin. “No need to use other chains with their own trust trade-offs,” Ihnatiuk told Cointelegraph.
Ihnatiuk added that RGB projects already in existence want to include Tether.USDTOnce Bitcoin becomes available, you can purchase it.
He also added that Lightning-based swaps would allow for decentralized trade functionality.
“RGB allows you to build any DeFi logic on top, leveraging its VM possibilities, that could be even compatible with EVM,” Ihnatiuk told Cointelegraph. “So any use cases we know in Ethereum, Solana, DeFi can be built now natively on Bitcoin.”
Ihnatiuk said to Cointelegraph, that RGB is also an advantage because of its direct connection with Bitcoin. This allows it leverage Bitcoin’s safety.
The client-side model of validation also provides privacy, as transaction data isn’t visible on chain.
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RGB Protocol Association provides grants to the ecosystem
The RGB Protocol Association was formed by prominent crypto-organizations to promote and coordinate the adoption and development of RGB via education and funding.
“Founding members include Bitfinex, Plan B Network, ThunderStack, Boosty Labs, Bitmask by Diba, Fulgur Ventures, LNFI, Kaleidoswap and Tribe RGB,” Ihnatiuk told Cointelegraph.
The association, he said, will support and encourage innovation in Bitcoin through grants and sponsorships.
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Source: cointelegraph.com
