Users validate their own contracts without sharing data with the entire network.
RGB 1.0 You can verify contracts without revealing its content, using ZK -Stark cryptography.
Bitcoin is on the edge of a new chapter in its evolution. With the publication of your “Yellow Paper” (or technical manual), RGB 1.0 is presented as a new tool that opens the door to intelligent contracts in Bitcoin, promising to enrich the network with advanced functionalities, maintaining its decentralized and safe essence.
Integrated to operate with the main network and with second layers (L2) such as Lightning Network (LN), RGB 1.0 is an L2 that bets on Improve privacy and scalabilityopening space for decentralized applications (defi) built directly on Bitcoin.
On August 12 he marked a milestone in the development of RGB. For the first time achievement With success the bridge that USDT moved from Ethereum to RGB, also marking its historical entrance to the Bitcoin ecosystem through this protocol.
This integration allows USDT to settle in Bitcoin, circulate through RGB and RGB-lightning, and preserve privacy by default, offering a safe and efficient solution.
This RGB bridge unlocks liquidity for Bitcoin and opening new possibilities for the decentralized financial ecosystem.
What is RGB I.0 for?
As mentioned, RGB I.0 is a Bitcoin L2 based on a smart contract system specifically to work on the main network, in Lightning and any other second -layer network of this ecosystem.
In one of its use cases, the LN network would play a fundamental role in acting as an efficient channel for Execute and manage The intelligent contracts that this system enables.
Bitcoin, although safe, can be slow and expensive to process many small or frequent transactions, especially when interacting with complex contracts.
The LN solves that by creating “payment channels” among users. These channels allow transactions (such as the transfer of an active token in RGB I.0) almost instantly and with minimal rateswithout registering each step in the base layer.
RGB I.0 could take advantage of that L2 to enable micropagos or applications in real time, such as instant voting games or systems.
The main purpose of RGB I.0 is to take Bitcoin beyond its traditional function for SEND OR SAVE VALUEturning it into a versatile platform for defi applications and intelligent contracts.
This means that, instead of depending on external platforms, users could manage agreements directly from each other using bitcoin as a base.
Potential use cases:
- Private and scalable intelligent contracts:
RGB I.0 could allow the creation of complex agreements, such as money transfers that are only completed if a condition is met (for example, deliver a product), or the emission of custom tokens that represent assets such as properties or digital art.
By maintaining details outside the public network, the users could protect your personal informationa key aspect for those who value privacy.
- Total decentralization:
Unlike some systems that require centralized nodes (single -entity controlled servers), RGB I.0 could eliminate this need, aligning with the Bitcoin principle not to trust intermediaries.
This could strengthen resistance to censorship, a potential benefit for users in countries with government restrictions.
When registering only minimum commitments in the network (32 bytes per operation instead of complete data), RGB I.0 could handle a much greater volume of transactions and contracts without saturating the Bitcoin networkwhich could reduce costs and waiting times.
Some possible cases of use of RGB I.0:
- Create a decentralized real estate market where purchase-sale contracts are executed automatically upon receiving payment.
- Manage decentralized insurance where claims are paid only if an event is verified (for example, a natural disaster).
- Facilitate anonymous donations to non -profit organizations, preserving the identity of the donor.
- Implement loyalty systems or rewards for online stores, all based on bitcoin.
How does it work?
He operation RGB I.0 is based on a combination of the following technologies:
- Customer side validation (Client-Me Validation):
Unlike networks such as Ethereum, where smart contracts (automated agreements that are executed by themselves under certain conditions) are stored and processed directly on the network, RGB I.0 takes a different approach.
This system uses what is called customer side validation (client-side validation, in English). This means that the details of the contracts are saved and verified in the personal devices of the users (such as computers or telephones), while only small “commitments” (cryptographic summaries of 32 bytes) are registered in the Bitcoin network.
This reduces the work of the miners (who process transactions) and makes the network more efficient when decreasing The amount of data stored in the chain.
- Single -use seals (Single -use Seals):
These are like “digital locks” that ensure that a contract or active can only be used once.
For example, if Alice sends an asset transferable in an intelligent contract to Bob, the seal “breaks” (spent) in the transaction, and cannot be reused. This is linked to a UTXO (unbound transaction output), which is like a “drawer” of Bitcoin that contains available funds. This mechanism prevents double expensea key problem in cryptocurrencies.
- Zk-Starks (Arguments of scalable, transparent knowledge and zero knowledge):
These are cryptographic tests that allow a person to verify that a contract is valid without revealing its details. For example, that person can confirm that another has a certain digital asset without knowing who originally created it.
The Zk-Starks They are “scalable” (they can handle large contracts) and “transparent” (they do not depend on secret keys), but generate large trial files, which may require more storage.
- Anchor structure (Anchoring):
RGB contracts “anchor” to the bitcoin chain through transactions that include commitments. This anchor acts as a public time seal. In addition, the Sharding (Data division into fragments) allows to group several operations in a single transaction, optimizing the use of the network.
- Typical RGB 1.0 flow:
Alice creates a local contract on your device and generates a cryptographic commitment. This commitment is anchored to a Bitcoin UTXO through a transaction.
Bob verifies the contract with its own copy of the data and the anclado commitment. The transfer is completed Off-Chain (outside the chain), and only the new commitment is recorded in Bitcoin.
This contrasts with other networks, such as Ethereum, where every step of the contract (creation, verification and execution) is saved and processed directly in the chain, which can be expensive and expose public dataRGB I.0 reduces the load on the network and protects privacy by handling most of the work locally.
Programming languages in the Bitcoin RGB protocol
For another lane, and in terms of programming languages, developers highlight that it can be used Rust (Used by Solana, for example) to create simple contracts, taking advantage of its robustness and accessibility.
For more complex projects the virtual machine of Alluvm Y and his language Aluassemblyspecifically designed for high performance and safety environments.
This integration suggests that RGB executes advanced logic efficiently, which enhances your versatility to create applications And Defi systems, all while maintaining the robustness and privacy of the bitcoin ecosystem.
In addition, the team is working in Contractum, a new developing language that promises to simplify and further enhance the creation of intelligent contracts.
What are the RGB 1.0 challenges?
Although RGB I.0 offers exciting potential, it also faces challenges that should be considered:
The validation of the customer side requires that users handle their own software and data. For a beginner, configuring an RGB portfolio could be as complicated as assembling a puzzle without instructions, Unless simple interfaces are developed.
Errors in the implementation of ZK-STARKS OR SINGLE-USE SEALS They could allow someone to rob assets or manipulate contracts.
In addition, if a user does not protect their device (for example, against malware), a Atacker could alter local data.
- Limited scalability by users:
Although Bitcoin is lightened, user devices must process complex contracts. On old computers or basic phones, this could be slow, creating a practical limit.
Thus, RGB I.0 is presented as an intriguing proposal that could redefine the future of Bitcoin, transforming it from a platform for intelligent contracts and decentralized applications.
However, as technology recently presented on August 1, 2025, it is still in its early development stages and we will have to wait for its evolution and adoption.
