Wednesday, January 19

Exchanging various tokens at very low cost in Bitcoin will be possible with the RGB protocol

Key facts:
  • RGB is a protocol based on the Bitcoin and Lightning Network, currently under development.

  • Francisco Calderón said that they are about to release a new trial version for developers.

RGB technology will bring many benefits to Bitcoin, among which facilitating access to financial services at a minimum cost will be the most relevant. This was expressed by Francisco Calderón, a Venezuelan developer focused on working with the RGB protocol for Bitcoin and the Lightning Network, in an interview with CriptoNoticias.

Calderón believes this new technology has the potential to make Bitcoin into an entirely fungible monetary system, since RGB will allow you to carry out confidential, secure transactions with minimal commissions. He argues that with RGB implemented 100% “there is no way to ‘stain’ some bitcoins, nor for some governments to ask exchanges not to accept bitcoin from some source. In this case, no one could tell them, ‘You cannot receive this bitcoin’, because (the exchange) is totally private.

As explained in other CriptoNoticias articles, RGB is a protocol that allows the development of scalable and confidential smart contracts for Bitcoin and the Lightning network. Although its developers clarify that It is not a protocol based on tokens, if it allows to issue and manage different types of assets.

RGB uses Bitcoin as a “truth machine”

Francisco Calderón explained that RGB makes it possible to create complex smart contracts “off chain”, that is, without resorting to a side chain or other blockchains such as Ethereum, Solana or EOS, but rather using Bitcoin’s own blockchain for validation. “The Bitcoin blockchain is used as the truth machine,” said Calderón.

The developer, who was funded by Fulgur Ventures three months ago to dedicate himself full-time to RGB development, said RGB privacy is achieved through a technology called client-side validation. This allows only the parties involved in a contract can directly validate it on the Bitcoin blockchain, “Without the need to tell the world.” Thus, transactions that are not traceable can be carried out.

It is as if in real life we ​​create a contract for the sale of a house, in that case only the two parties are involved, in addition, obviously, to the notary. But we here do not need a third party to validate it. The blockchain fulfills that function.

Francisco Calderón, developer of the Bitcoin RGB protocol.

RGB will allow from cheap transactions to save lives

Another of the striking benefits of RGB is its ability to manage fungible tokens (such as cryptocurrencies) and non-fungible (such as collectibles or NFT).

“For example,” the developer explained, “a fungible token like USDT, which is very popular and is like a crypto dollar, can be sent using the RGB protocol, using the Lightning Network. This will allow us to transactions using this type of currency known as ‘stablecoins’, at a very low cost. We are not going to experience those spikes in the transaction cost due to network congestion, since the commission that is paid in the Lightning Network would be paid. “

For Calderón, in this way, a solution to the volatility of bitcoin can be offered for people with low purchasing power.

There is a lot of talk that people who earn very little or what they earn is to eat and do not have the capacity to save, it is difficult for them to use bitcoin, because it could seriously affect them if after they are paid, the price of bitcoin falls, because that it may represent not eating that day. So, these types of tools, for those specific cases, can allow them to maintain a more stable currency.

Francisco Calderón, developer of the Bitcoin RGB protocol.

In your opinion, the future of Bitcoin with RGB is promisingAs it can solve many more problems, such as access to financial services for people excluded by banks, or the collection and management of money to protect vulnerable people in conflict zones.