Bitcoin ecosystem welcomes new breakthroughs: RGB protocol leads the wave of technological innovation

The Bitcoin ecosystem has always been the focus of technological innovation, with each technological advancement injecting new vitality into it. Among these, the RGB protocol, as a remarkable innovation, has been dedicated to building a universal smart contract system based on Bitcoin and the Lightning Network since its proposal in 2017. Recently, the release of the RGB V0.10 version client has attracted widespread attention.

Recently, Cosminmart co-founder Valestin accepted an exclusive interview, sharing the latest developments of the project, ecological development, and his views on the BTC ecological development, technological achievements, and future technological roadmap. The following are the main points of the interview.

Project Introduction

Valestin introduced that Cosminmart is an ecosystem deployed on the Lightning Network based on the RGB protocol, mainly focusing on the issuance and trading of RGB20 tokens. The project includes完善 RGB infrastructure, launching Bifrost, developing Cosm Wallet, and the first AMM Dex based on smart contracts on Bitcoin—Bitswap.

Cosm Wallet is built on the Bitcoin Lightning Network, supporting RGB protocol assets, and will also support the management of other Bitcoin Lightning Network assets and near-zero fee real-time transfers in the future. Currently, the wallet has launched a Chrome browser extension version and is in the public testing phase.

Bitswap will become the first truly smart contract-based AMM Dex on Bitcoin, similar to Uniswap V1 on Ethereum. It will be able to create liquidity pools between RGB tokens and Bitcoin, injecting stronger liquidity into the Bitcoin ecosystem, facilitating the issuance and trading of various project tokens.

Reasons for Choosing RGB

Valestin stated that the decision to fully invest in RGB is based on a comprehensive evaluation of various scaling solutions in the Bitcoin ecosystem. He believes that RGB is almost a perfect Bitcoin scaling solution and entrepreneurial track.

The advantages of RGB include:

1. Transactions are implemented based on the Lightning Network, theoretically achieving up to 40 million transactions per second, with transaction fees being nearly zero.
2. Relying on Bitcoin, the safest payment system, there is no need to modify or fork the mainnet, while supporting a more powerful smart contract system.

In addition, Tether CEO Paolo Ardoino is also a strong supporter of the RGB protocol. Tether and Bitfinex have long invested funds to support the development of the RGB ecosystem and participated in underlying code development. Tether recently announced that it will issue stablecoins based on the RGB protocol.

Challenges Faced by the Project

Although RGB technically shows long-term vision, it still faces some challenges in the early stages of the ecosystem, such as a small community size, low enthusiasm, and incomplete infrastructure. Valestin believes that these challenges mainly stem from the shortage of developers.

The core team of RGB and the teams deeply involved in the ecosystem have extremely top-notch development capabilities, but are limited by a lack of manpower, resulting in many aspects only being operational, with engineering implementation still needing improvement. The Cosminmart team is actively enhancing the infrastructure and implementing applications.

Cooperation with RGB Official

Valestin stated that communication with RGB officials is progressing smoothly, and both parties have reached a consensus on cooperation. The LNP/BP Association, as a Swiss non-profit organization, has completed the underlying development of the RGB protocol. Contrary to conventional understanding, project parties need to support the official, rather than the official providing funding to the project parties.

The RGB Association adheres to an idealistic philosophy, does not accept venture capital or commercial operations, and does not issue official tokens to ensure the purity of the technology. RGB is a completely open-source technology that anyone can use freely.

Competitive Landscape and Ecological Development

The competitive landscape of the RGB ecosystem is open and friendly, with few teams currently having mature products. Wallet applications serve as the entry point to the Lightning Network ecosystem, and various entrepreneurial teams are actively participating in the competition. Cosminmart has developed a powerful RGB asset communication storage standard protocol and is committed to improving the underlying RGB protocol and infrastructure.

In terms of ecological progress, DIBA-Bitmask will launch the DIBA Marketplace on November 11th, enabling systematic trading of RGB21 NFT assets. Cosminmart maintains a good cooperative relationship with DIBA and is actively preparing to assist in DIBA's launch.

Future Outlook

Cosminmart will focus on the trading infrastructure of the RGB20 token and actively promote cooperation with major exchanges to launch the RGB token. The COSM token is expected to become the first systematically traded RGB20 token.

Valestin hopes that more entrepreneurial teams will participate in the development of the RGB and Lightning Network ecosystems. Cosminmart will provide technical, resource, and financial support for early-stage entrepreneurial teams, and welcomes them to join its application ecosystem.

In the long run, Cosminmart plans to invest in the DeFi sector of RGB after perfecting token trading, such as establishing lending protocol standards. At the same time, it will vigorously promote the development of the lightning network application Lapp, contributing to the large-scale application of Bitcoin.

The RGB protocol is noteworthy because it employs a series of advanced technologies built on Bitcoin and the Lightning Network, meeting user demands for privacy, scalability, and programmability, without triggering a fork in the Bitcoin blockchain. With the popularity of the Ordinals protocol and the development of the Lightning Network, Bitcoin Layer 2 solutions like RGB are regaining attention. The combination of these technologies and new ideas may spawn new possibilities, further advancing the Bitcoin ecosystem and expanding its functionalities and applications.