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Gaming To Earn Bitcoin While Bitcoining To Game Earning

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Gaming To Earn Bitcoin While Bitcoining To Game Earning

This is an opinion editorial by Tyler Parks, who has a background in biological science and spent a decade working in the restaurant industry.

Money is a topic people have come to take quite seriously. So serious in fact that grown adults wait with bated breath for news of the latest figures on consumer prices and interest rates. These have real impacts on perceptions of wealth and productivity. But what if I told you money is just a game we play, a game like any other, with a variety of rules and objectives. Money is a symbolic thing we use in order to achieve things of value and significance in the world and hence not an end in itself. A financial system is like a game board with pieces, obstacles and paths to success. The questions are: Are you aware of the kinds of money games you play on a regular basis? Did you voluntarily join or were you born into a game whose rules were never explained and with a hand you didn’t choose?

People experience stress when their concept of money is threatened. Prices of goods go up, asset prices fall, some people go bust and others get lucky. Too often we create our own anxiety because we haven’t yet evolved our view of the exact role and meaning of money. It’s not surprising we would get frustrated when we don’t even know the rules of the game. We are further limited by viewing money in terms of dollars and cents rather than a fluid reservoir of potential energy. Much of the worry evaporates when we adopt a less rigid view of money and get clear on the type of money games we want to be a part of. To get there, I want to discuss some clear examples of the association of games and money along with more figurative ways we can apply the spirit of games to our work, lifestyle, and personal philosophy.

But first a disclaimer: When it comes to money, it’s easy to equate gaming with gambling, and although that’s a view you can hold, it’s not what I would hope you take away from this article. So, it’s worth clarifying: To chalk up all of finance to a game is not a reason to be cynical. On the contrary, it’s a call for us to take an active role in our education as a participant of the economy in order to take our skills to the next level. We’ve seen what happens when making money is viewed in the most trivial sense, that is we allow it to take the place of adding value and creating relationships. Money as an end in itself breeds political corruption, the attention economy, and meme stocks. During the Gamestop moment of 2021, traders learned the hard way whose rules they were playing by when the attempt to expose market shenanigans uncovered a far more damning underbelly of the fiat machine.

Let’s Play

People are drawn to bitcoin because it’s a game where network consensus depends on clear, unambiguous rules. The incentive is such that doing good by yourself is to do good by everyone. As such it’s easy to want to share a love of bitcoin with everyone you know. A typical bitcoin transaction may be zero-sum in terms of net value, but the synergy of peer-to-peer networks yields exponential gains to society.

Gaming on mobile, PC and consoles is a vast market and is growing every day making it one of the major frontiers of bitcoin adoption. The play-to-earn concept is just the beginning of the match made in heaven that is bitcoin and games. Earning sats for playing a game is an opportunity to become a better player while getting familiar with the technology, and it also helps developers incentivize players to explore new titles. THNDR Games is spearheading play-to-earn with Lightning-powered mobile games.

Because bitcoin is internet native, it’s not limited in utility to one game but portable across platforms. Many other in-game collectibles either aren’t transferrable or have a short shelf-life in the digital world. Whether you’re switching games or logging off, your bitcoin balance can easily follow you. Say you’re ready to cash out after a gaming session and decide to use your bitcoin earnings to buy tacos down the street. That’s my idea of augmented reality.

Gamers will already be familiar with streaming paid content to fans, and until recently this was accomplished through traditional banking and credit. Bitcoin reduces overhead at the point-of-sale putting more sats in the pockets of players. Streaming more generally is taking over the way content is made and consumed, and bitcoin has transformed the landscape by enabling real time micropayments. Creators benefit from this high-precision feedback which allows them to better serve their audience.

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The culture and ethos of bitcoin has reignited a passion in users to conduct more of their activities on a peer-to-peer basis that extends not only to value exchange but to messaging, file sharing and all manners of computation. The internet was originally conceived with these features in mind, but along the way the tech got better while users got comfortable relying on third parties.

It might seem silly to send a text message to a friend over the Lightning network, but it’s possible and incredibly useful, and the beauty is that with the right privacy practices, there is no one snooping in the middle. If you think about it, there’s no reason we can’t stream video calls peer-to-peer as well. We simply take for granted the fact that much of our communication flows through centralized servers. Sure, there is a time and place for using the cloud, but I would venture to say our ability to preserve the peer-to-peer internet could mean the difference between free speech and censorship on a global scale. This is the essence of the game occurring on the frontline of the war of information. To help combat censorship, Impervious browser was designed to prioritize the core values of unfettered communication.

The fight for privacy is a game between the actions of individuals and the means of bulk data collection. In the past there may have been a reasonable expectation of privacy, and surveillance was the exception, but now the reverse is true; only that which can be concealed from prying eyes has a chance at being kept private. Although surveillance has made privacy nearly impossible in some respects, I wouldn’t give up hope on financial privacy with respect to bitcoin. Programmable money can be layered with new functionality; whether it’s used for freedom or tyranny is a choice we must seriously consider.

Stacking Skills

When you measure all of your possessions in terms of how much bitcoin you could own instead, it helps put your values into perspective. I don’t think this is an extremist attitude but merely a useful thought exercise that helps you decide whether it’s really worth buying new crap instead of saving. This is because saving bitcoin represents the opportunity cost of every other decision to spend money. National currencies have the opposite effect that I argue is to our detriment. Because we have an expectation of currency inflation, the incentive is to spend more today at the expense of tomorrow.

Something very interesting begins to unfold in your life when you internalize the nature of bitcoin as a deflationary force, and that is, you start prioritizing the future, which has a remarkable effect on present behavior. You don’t have to be naturally frugal in order to see the benefits of delaying gratification which can be both financial and psychological. Where the culture of instant gratification becomes a dopamine trap and hedonic spiral, saving for the future allows you to unwind and realign with the important things in life. This practice becomes a game in itself to gradually remove the excess from your life and connect with a deeper sense of fulfillment. Saving in bitcoin is a perfect way to start gamifying your budget. Merchants will frequently offer discounts for paying in bitcoin, and if you feel anxiety over breaking up with your credit card, you can even earn sats back on purchases with the right card providers. You might also discover ways to gamify your work — for instance, by earning bitcoin for completing microtasks from anywhere in the world.

Bitcoin mining at home is a natural consequence of the intersection between slashing living expenses and stacking sats. Those that venture into mining benefit from earning bitcoin directly from the network without having to sign up with an exchange, and recycling the vented heat of miners can help heat a living space, hot tub or greenhouse.

Embracing a Bitcoiner’s lifestyle and values inspires one to decentralize and self-host more of their personal data, but don’t be intimidated by believing it has to be all or nothing. Personal sovereignty exists on a sliding scale. The point is to exercise more autonomy in the areas that matter to you and understand the trade-offs of delegating control elsewhere. You can gamify your own bitcoin learning curve to increase your competence through testing and experimenting. As more work is being done online, we see an increase of nomads looking to optimize their physical and geographic surroundings. With your savings safe on a global ledger, you won’t need much else with you to hop between jurisdictions.

There’s no reason not to put a piece of your life or business on bitcoin rails regardless of your level of enthusiasm for blockchains, smart contracts and all the other buzzwords. There are convenient hand-holding solutions that will get you quickly accepting bitcoin payments followed by a range of open-source technologies with which you can build a more self-sovereign technology stack that includes self-hosting a Bitcoin node and point-of-sale. By using bitcoin for commerce, you may find it’s less scary than imagined and more a huge improvement in user experience mainly by cutting out a lot of red tape. Anyone with a smartphone can shop at a farmers market in El Salvador, for example, and the merchant can lock in a dollar value on the spot if they choose rather than speculate on bitcoin’s price in their business, plus both parties enjoy instant settlement and no fraud risk.

End Game

Since day one, bitcoin adoption has been a story of game theory. Why a bitcoin should have a price at all is testament to our inclination to behave in a game strategic manner. What made 10,000 bitcoin a fair price for two pizzas in 2010? The logical explanation is that bitcoin had graduated from a mere meme by bootstrapping a system of trust internally. The reason people developed faith in the world’s preeminent cryptocurrency is not just the fixed supply of 21 million but that your ownership in the network is secure and faithfully resilient. Critics point to bitcoin as simply a bet that a greater fool will buy you out, but this misses the point that we harp on beyond price — that of censorship resistance, which is something legacy systems have been unable to deliver or replicate. People that realize the value and utility of bitcoin are therefore not to be regarded as fools but as evidence of our collective wisdom and humanity.

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Nations don’t necessarily need to decree bitcoin as legal tender, because the people will speak for themselves, prompting governments to play catch up. Some say the end game is to begin pricing the energy trade in bitcoin, because in the midst of currency disruption, nothing stops bitcoin from emerging as a neutral reserve asset. To accommodate international trade though, the network needs to grow in value to many times what it is today. The race for adoption accelerates when neighboring countries see the real wealth accrued by competitors, especially that which lies outside the walls of financial imperialists. Bitcoin is on a trajectory of its own and has no obligation to bend to the demands of despots. However, Bitcoiners are happy to build bridges technically and socially with those who are friendly to adoption and thus share a common vision.

What makes a game fair and pleasant is the existence of clearly defined rules. Games like chess or poker persist through the centuries because the rules don’t change. That reliability doesn’t take away from the richness of outcomes and possibilities; rather it enables such richness. The game of capitalism is what happens when people are left to their own devices where the rules derive from the physical constraints of nature and the basic assumption that people will hunt and gather resources to survive. Man’s attempt to intervene in markets and impose rule by decree is to effectively rewrite the rules that favor the rich, and this doesn’t inspire confidence in others to continue playing the game.

Money itself is boring when it does what it is supposed to, i.e., facilitate trade among economic participants. It’s not something you invest in nor do you attempt to diversify your money by holding incrementally inferior tokens. I don’t store wealth in alternative cryptocurrency assets for the same reason I don’t store wealth in airline miles. There can be a token for anything just like there are loyalty points for coffee shops and department stores. But there is only one best money, because the best money is a magnet to the world’s liquidity.

To some, gamifying money means high-stakes gambling and the compulsion to metaphorically dance while the music’s playing, but I encourage you to go beyond the temptation to speculate on tokens, farm for black magic yield or seek safety in bank liabilities. Instead focus on the creative ways you can humbly stack sats and in so doing achieve greater amounts of freedom and more meaningful and impactful relationships.

I am reflecting on the words of Donald Hoffman who gave a poignant reminder that none of our possessions and desires can we take with us when we inevitably shuffle off. Therefore to internalize the fact of our mortality is to realize that all we can ever do is play games of all sorts socially and intellectually. It’s better that we occupy the driver’s seat of our cognitive machinery as opposed to someone else, and there is always someone else who wants to tell you what to see within your own “V.R. goggles.” But only you can experience what life is like in your head and heart. It’s high time we listen to what’s on the inside.

This is a guest post by Tyler Parks. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.

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El Salvador Takes First Step To Issue Bitcoin Volcano Bonds

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El Salvador Takes First Step To Issue Bitcoin Volcano Bonds

El Salvador’s Minister of the Economy Maria Luisa Hayem Brevé submitted a digital assets issuance bill to the country’s legislative assembly, paving the way for the launch of its bitcoin-backed “volcano” bonds.

First announced one year ago today, the pioneering initiative seeks to attract capital and investors to El Salvador. It was revealed at the time the plans to issue $1 billion in bonds on the Liquid Network, a federated Bitcoin sidechain, with the proceedings of the bonds being split between a $500 million direct allocation to bitcoin and an investment of the same amount in building out energy and bitcoin mining infrastructure in the region.

A sidechain is an independent blockchain that runs parallel to another blockchain, allowing for tokens from that blockchain to be used securely in the sidechain while abiding by a different set of rules, performance requirements, and security mechanisms. Liquid is a sidechain of Bitcoin that allows bitcoin to flow between the Liquid and Bitcoin networks with a two-way peg. A representation of bitcoin used in the Liquid network is referred to as L-BTC. Its verifiably equivalent amount of BTC is managed and secured by the network’s members, called functionaries.

“Digital securities law will enable El Salvador to be the financial center of central and south America,” wrote Paolo Ardoino, CTO of cryptocurrency exchange Bitfinex, on Twitter.

Bitfinex is set to be granted a license in order to be able to process and list the bond issuance in El Salvador.

The bonds will pay a 6.5% yield and enable fast-tracked citizenship for investors. The government will share half the additional gains with investors as a Bitcoin Dividend once the original $500 million has been monetized. These dividends will be dispersed annually using Blockstream’s asset management platform.

The act of submitting the bill, which was hinted at earlier this year, kickstarts the first major milestone before the bonds can see the light of day. The next is getting it approved, which is expected to happen before Christmas, a source close to President Nayib Bukele told Bitcoin Magazine. The bill was submitted on November 17 and presented to the country’s Congress today. It is embedded in full below.

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How I’ll Talk To Family Members About Bitcoin This Thanksgiving

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How I’ll Talk To Family Members About Bitcoin This Thanksgiving

This is an opinion editorial by Joakim Book, a Research Fellow at the American Institute for Economic Research, contributor and copy editor for Bitcoin Magazine and a writer on all things money and financial history.

I don’t.

That’s it. That’s the article.


In all sincerity, that is the full message: Just don’t do it. It’s not worth it.

You’re not an excited teenager anymore, in desperate need of bragging credits or trying out your newfound wisdom. You’re not a preaching priestess with lost souls to save right before some imminent arrival of the day of reckoning. We have time.

Instead: just leave people alone. Seriously. They came to Thanksgiving dinner to relax and rejoice with family, laugh, tell stories and zone out for a day — not to be ambushed with what to them will sound like a deranged rant in some obscure topic they couldn’t care less about. Even if it’s the monetary system, which nobody understands anyway.

Get real.

If you’re not convinced of this Dale Carnegie-esque social approach, and you still naively think that your meager words in between bites can change anybody’s view on anything, here are some more serious reasons for why you don’t talk to friends and family about Bitcoin the protocol — but most certainly not bitcoin, the asset:

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  • Your family and friends don’t want to hear it. Move on.
  • For op-sec reasons, you don’t want to draw unnecessary attention to the fact that you probably have a decent bitcoin stack. Hopefully, family and close friends should be safe enough to confide in, but people talk and that gossip can only hurt you.
  • People find bitcoin interesting only when they’re ready to; everyone gets the price they deserve. Like Gigi says in “21 Lessons:”

“Bitcoin will be understood by you as soon as you are ready, and I also believe that the first fractions of a bitcoin will find you as soon as you are ready to receive them. In essence, everyone will get ₿itcoin at exactly the right time.”

It’s highly unlikely that your uncle or mother-in-law just happens to be at that stage, just when you’re about to sit down for dinner.

  • Unless you can claim youth, old age or extreme poverty, there are very few people who genuinely haven’t heard of bitcoin. That means your evangelizing wouldn’t be preaching to lost, ignorant souls ready to be saved but the tired, huddled and jaded masses who could care less about the discovery that will change their societies more than the internal combustion engine, internet and Big Government combined. Big deal.
  • What is the case, however, is that everyone in your prospective audience has already had a couple of touchpoints and rejected bitcoin for this or that standard FUD. It’s a scam; seems weird; it’s dead; let’s trust the central bankers, who have our best interest at heart.
    No amount of FUD busting changes that impression, because nobody holds uninformed and fringe convictions for rational reasons, reasons that can be flipped by your enthusiastic arguments in-between wiping off cranberry sauce and grabbing another turkey slice.
  • It really is bad form to talk about money — and bitcoin is the best money there is. Be classy.

Now, I’m not saying to never ever talk about Bitcoin. We love to talk Bitcoin — that’s why we go to meetups, join Twitter Spaces, write, code, run nodes, listen to podcasts, attend conferences. People there get something about this monetary rebellion and have opted in to be part of it. Your unsuspecting family members have not; ambushing them with the wonders of multisig, the magically fast Lightning transactions or how they too really need to get on this hype train, like, yesterday, is unlikely to go down well.

However, if in the post-dinner lull on the porch someone comes to you one-on-one, whisky in hand and of an inquisitive mind, that’s a very different story. That’s personal rather than public, and it’s without the time constraints that so usually trouble us. It involves clarifying questions or doubts for somebody who is both expressively curious about the topic and available for the talk. That’s rare — cherish it, and nurture it.

Last year I wrote something about the proper role of political conversations in social settings. Since November was also election month, it’s appropriate to cite here:

“Politics, I’m starting to believe, best belongs in the closet — rebranded and brought out for the specific occasion. Or perhaps the bedroom, with those you most trust, love, and respect. Not in public, not with strangers, not with friends, and most certainly not with other people in your community. Purge it from your being as much as you possibly could, and refuse to let political issues invade the areas of our lives that we cherish; politics and political disagreements don’t belong there, and our lives are too important to let them be ruled by (mostly contrived) political disagreements.”

If anything, those words seem more true today than they even did then. And I posit to you that the same applies for bitcoin.

Everyone has some sort of impression or opinion of bitcoin — and most of them are plain wrong. But there’s nothing people love more than a savior in white armor, riding in to dispel their errors about some thing they are freshly out of fucks for. Just like politics, nobody really cares.

Leave them alone. They will find bitcoin in their own time, just like all of us did.

This is a guest post by Joakim Book. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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RGB Magic: Client-Side Contracts On Bitcoin

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RGB Magic: Client-Side Contracts On Bitcoin

This is an opinion editorial by Federico Tenga, a long time contributor to Bitcoin projects with experience as start-up founder, consultant and educator.

The term “smart contracts” predates the invention of the blockchain and Bitcoin itself. Its first mention is in a 1994 article by Nick Szabo, who defined smart contracts as a “computerized transaction protocol that executes the terms of a contract.” While by this definition Bitcoin, thanks to its scripting language, supported smart contracts from the very first block, the term was popularized only later by Ethereum promoters, who twisted the original definition as “code that is redundantly executed by all nodes in a global consensus network”

While delegating code execution to a global consensus network has advantages (e.g. it is easy to deploy unowed contracts, such as the popularly automated market makers), this design has one major flaw: lack of scalability (and privacy). If every node in a network must redundantly run the same code, the amount of code that can actually be executed without excessively increasing the cost of running a node (and thus preserving decentralization) remains scarce, meaning that only a small number of contracts can be executed.

But what if we could design a system where the terms of the contract are executed and validated only by the parties involved, rather than by all members of the network? Let us imagine the example of a company that wants to issue shares. Instead of publishing the issuance contract publicly on a global ledger and using that ledger to track all future transfers of ownership, it could simply issue the shares privately and pass to the buyers the right to further transfer them. Then, the right to transfer ownership can be passed on to each new owner as if it were an amendment to the original issuance contract. In this way, each owner can independently verify that the shares he or she received are genuine by reading the original contract and validating that all the history of amendments that moved the shares conform to the rules set forth in the original contract.

This is actually nothing new, it is indeed the same mechanism that was used to transfer property before public registers became popular. In the U.K., for example, it was not compulsory to register a property when its ownership was transferred until the ‘90s. This means that still today over 15% of land in England and Wales is unregistered. If you are buying an unregistered property, instead of checking on a registry if the seller is the true owner, you would have to verify an unbroken chain of ownership going back at least 15 years (a period considered long enough to assume that the seller has sufficient title to the property). In doing so, you must ensure that any transfer of ownership has been carried out correctly and that any mortgages used for previous transactions have been paid off in full. This model has the advantage of improved privacy over ownership, and you do not have to rely on the maintainer of the public land register. On the other hand, it makes the verification of the seller’s ownership much more complicated for the buyer.

Title deed of unregistered real estate propriety

Source: Title deed of unregistered real estate propriety

How can the transfer of unregistered properties be improved? First of all, by making it a digitized process. If there is code that can be run by a computer to verify that all the history of ownership transfers is in compliance with the original contract rules, buying and selling becomes much faster and cheaper.

Secondly, to avoid the risk of the seller double-spending their asset, a system of proof of publication must be implemented. For example, we could implement a rule that every transfer of ownership must be committed on a predefined spot of a well-known newspaper (e.g. put the hash of the transfer of ownership in the upper-right corner of the first page of the New York Times). Since you cannot place the hash of a transfer in the same place twice, this prevents double-spending attempts. However, using a famous newspaper for this purpose has some disadvantages:

  1. You have to buy a lot of newspapers for the verification process. Not very practical.
  2. Each contract needs its own space in the newspaper. Not very scalable.
  3. The newspaper editor can easily censor or, even worse, simulate double-spending by putting a random hash in your slot, making any potential buyer of your asset think it has been sold before, and discouraging them from buying it. Not very trustless.

For these reasons, a better place to post proof of ownership transfers needs to be found. And what better option than the Bitcoin blockchain, an already established trusted public ledger with strong incentives to keep it censorship-resistant and decentralized?

If we use Bitcoin, we should not specify a fixed place in the block where the commitment to transfer ownership must occur (e.g. in the first transaction) because, just like with the editor of the New York Times, the miner could mess with it. A better approach is to place the commitment in a predefined Bitcoin transaction, more specifically in a transaction that originates from an unspent transaction output (UTXO) to which the ownership of the asset to be issued is linked. The link between an asset and a bitcoin UTXO can occur either in the contract that issues the asset or in a subsequent transfer of ownership, each time making the target UTXO the controller of the transferred asset. In this way, we have clearly defined where the obligation to transfer ownership should be (i.e in the Bitcoin transaction originating from a particular UTXO). Anyone running a Bitcoin node can independently verify the commitments and neither the miners nor any other entity are able to censor or interfere with the asset transfer in any way.

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transfer of ownership of utxo

Since on the Bitcoin blockchain we only publish a commitment of an ownership transfer, not the content of the transfer itself, the seller needs a dedicated communication channel to provide the buyer with all the proofs that the ownership transfer is valid. This could be done in a number of ways, potentially even by printing out the proofs and shipping them with a carrier pigeon, which, while a bit impractical, would still do the job. But the best option to avoid the censorship and privacy violations is establish a direct peer-to-peer encrypted communication, which compared to the pigeons also has the advantage of being easy to integrate with a software to verify the proofs received from the counterparty.

This model just described for client-side validated contracts and ownership transfers is exactly what has been implemented with the RGB protocol. With RGB, it is possible to create a contract that defines rights, assigns them to one or more existing bitcoin UTXO and specifies how their ownership can be transferred. The contract can be created starting from a template, called a “schema,” in which the creator of the contract only adjusts the parameters and ownership rights, as is done with traditional legal contracts. Currently, there are two types of schemas in RGB: one for issuing fungible tokens (RGB20) and a second for issuing collectibles (RGB21), but in the future, more schemas can be developed by anyone in a permissionless fashion without requiring changes at the protocol level.

To use a more practical example, an issuer of fungible assets (e.g. company shares, stablecoins, etc.) can use the RGB20 schema template and create a contract defining how many tokens it will issue, the name of the asset and some additional metadata associated with it. It can then define which bitcoin UTXO has the right to transfer ownership of the created tokens and assign other rights to other UTXOs, such as the right to make a secondary issuance or to renominate the asset. Each client receiving tokens created by this contract will be able to verify the content of the Genesis contract and validate that any transfer of ownership in the history of the token received has complied with the rules set out therein.

So what can we do with RGB in practice today? First and foremost, it enables the issuance and the transfer of tokenized assets with better scalability and privacy compared to any existing alternative. On the privacy side, RGB benefits from the fact that all transfer-related data is kept client-side, so a blockchain observer cannot extract any information about the user’s financial activities (it is not even possible to distinguish a bitcoin transaction containing an RGB commitment from a regular one), moreover, the receiver shares with the sender only blinded UTXO (i. e. the hash of the concatenation between the UTXO in which she wish to receive the assets and a random number) instead of the UTXO itself, so it is not possible for the payer to monitor future activities of the receiver. To further increase the privacy of users, RGB also adopts the bulletproof cryptographic mechanism to hide the amounts in the history of asset transfers, so that even future owners of assets have an obfuscated view of the financial behavior of previous holders.

In terms of scalability, RGB offers some advantages as well. First of all, most of the data is kept off-chain, as the blockchain is only used as a commitment layer, reducing the fees that need to be paid and meaning that each client only validates the transfers it is interested in instead of all the activity of a global network. Since an RGB transfer still requires a Bitcoin transaction, the fee saving may seem minimal, but when you start introducing transaction batching they can quickly become massive. Indeed, it is possible to transfer all the tokens (or, more generally, “rights”) associated with a UTXO towards an arbitrary amount of recipients with a single commitment in a single bitcoin transaction. Let’s assume you are a service provider making payouts to several users at once. With RGB, you can commit in a single Bitcoin transaction thousands of transfers to thousands of users requesting different types of assets, making the marginal cost of each single payout absolutely negligible.

Another fee-saving mechanism for issuers of low value assets is that in RGB the issuance of an asset does not require paying fees. This happens because the creation of an issuance contract does not need to be committed on the blockchain. A contract simply defines to which already existing UTXO the newly issued assets will be allocated to. So if you are an artist interested in creating collectible tokens, you can issue as many as you want for free and then only pay the bitcoin transaction fee when a buyer shows up and requests the token to be assigned to their UTXO.

Furthermore, because RGB is built on top of bitcoin transactions, it is also compatible with the Lightning Network. While it is not yet implemented at the time of writing, it will be possible to create asset-specific Lightning channels and route payments through them, similar to how it works with normal Lightning transactions.

Conclusion

RGB is a groundbreaking innovation that opens up to new use cases using a completely new paradigm, but which tools are available to use it? If you want to experiment with the core of the technology itself, you should directly try out the RGB node. If you want to build applications on top of RGB without having to deep dive into the complexity of the protocol, you can use the rgb-lib library, which provides a simple interface for developers. If you just want to try to issue and transfer assets, you can play with Iris Wallet for Android, whose code is also open source on GitHub. If you just want to learn more about RGB you can check out this list of resources.

This is a guest post by Federico Tenga. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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