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RGB state transitions

RGB operates on a Bitcoin-inspired single-use-seal model. In this model, when a transaction in RGB takes place, what actually happens is the sender creates a state transition of the contract, which dictates the rights being transferred. Considering fungible assets as an example: initially, the issuer of a contract establishes the genesis state. This state outlines the contract's specifications, such as the asset's name, its total supply, and the UTXO (Unspent Transaction Output) that has the authority to move this supply. Subsequently, when the assets are transferred for the first time, the holder of the initial UTXO is able to create a new state transition. This new state transition specifies which UTXO will now possess the asset.

State transitions in the RGB system are not limited to just transferring asset ownership, they can also be applied to various other rights. For instance, in the context of asset issuance, this could include the right to conduct a secondary issuance or the authority to modify/add certain attributes of the asset, such as its metadata.

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Last updated 1 year ago