Quick Question

📔What is the RGB?

RGB is a smart contract system for Bitcoin and the Lightning Network, designed for scalability and confidentiality, developed by the LNP/BP Standards Association. It utilizes the notions of both private and collective ownership. RGB protocol is a Turing-complete, trustless form of distributed computation.

📔What are the key characteristics of RGB?

(1) High confidentiality, security, and scalability.

(2) no bitcoin time chain congestion, because the transaction only retains the homomorphic commitments that require additional storage

(3) Upgradable in the future without the need for a hard fork

(4) Higher censorship resistance than Bitcoin: miners cannot see the flow of assets in a transaction

(5) No concept of blocks and chains

📔What is the global state in RGB contracts?

RGB incorporates the notion of a Global State, a new feature for developing intricate applications on the platform, such as synthetic assets, algorithmic stablecoins, and others. Currently, every RGB contract possesses a global state, which is accessible to virtual machines and clients, including wallets and similar entities.

The XRGB Wallet utilizes this new feature released in RGB v0.10.

📔How RGB Stays Fully Compatible with the Lightning Network?

By integrating specific token payment channels with the Lightning Network, RGB assets can provide an experience and security level which is the same as standard Lightning Network transactions. This integration facilitates low-cost, rapid, and reliable payments, benefiting the broader ecosystem, including users, developers, and operators of Lightning nodes.

📔Will RGB require a fork of Bitcoin or Lightning?

No. RGB is compatible with forthcoming updates to Bitcoin and the Lightning Network (LN), such as Schnorr, Taproot, and Discreet Log Contracts (DLC). It will not necessitate any modifications to either the Bitcoin or Lightning protocols.

📔RGB NFT vs other NFT

no need in costly blockchain storage

no need in IPFS (which is also unencrypted)

no need in special data management solution

no need in trusting websites to keep the data

embedded DRM-type encryption and ownership management

infrastructure for backups utilizing Lightning Network

ways to monetize content (sell not the NFT itself, but access to the content, multiple times)

📔How is safety reached in RGB?

A significant portion of RGB depends on the security provided by Bitcoin and the Lightning Network at the Layer 1 level.

State Isolation: States are violated across various smart contracts, and interactions between them are only possible through designated protocols (like Spectrum) within channels.