RGB Protocol May Unclog Bitcoin’s Blockspace: Proponent Claims27. May 2023
•Gideon Nweze, the founder and CEO of Digital Bitcoin Art and Assets (DIBA) believes that there is an alternative way to bring NFTs to Bitcoin that doesn’t impact block space and transaction fees.
•He launched a beta version of his NFT marketplace on May 19 that leverages the RGB Smart Contract Protocol to mint NFTs on top of the Bitcoin (BTC) network.
•The RGB Protocol works in a similar way as a layer-2 scaling solution on Ethereum, solving Bitcoin’s blockspace problems without inscribing assets directly “into” the blockchain.
RGB Protocol Could Solve Bitcoin’s Ordinals Problem
Tom Mitchelhill, founder of Digital Bitcoin Art and Assets, claims that smart contracts on Bitcoin could solve the myriad problems created by Ordinals. This protocol, known as RGB Smart Contract Protocol, enables encrypted transactions with Lightning Network functionality allowing users to mint NFTs without taking up huge amounts of space on the network.
How RGB Works?
RGB works similarly to a layer-2 scaling solution on Ethereum in which transactions are layered on top of the network rather than being inscribed directly into it. This would allow for more efficient use of block space and reduce transaction fees associated with Ordinals Protocol.
Criticisms Against Ordinals
Since its introduction in January, assets minted by way of Ordinals have attracted widespread criticism for being inefficient and “clunky” due to having to inscribe assets directly “into” the blockchain. The RGB protocol provides an alternative solution where everything is built in layers on top of the foundation instead.
Trustless Computer: An Alternative
The RGB Protocol is only capable of minting NFTs, not BRC-20 tokens; however another protocol called Trustless Computer leverages smart contracts for BRC-20 token minting instead. It uses zero knowledge proofs for sending data between untrusted networks while maintaining privacy at all times – making it ideal for asset management solutions like DeFi protocols or tokenized securities solutions.
The emergence of protocols like RGB and Trustless Computer indicate that there may be potential alternatives when it comes to bringing NFTs onto Bitcoin without incurring high transaction fees or taking up too much block space – offering a viable solution for those looking to leverage their BTC holdings in creative ways without compromising security or decentralization principles inherent within cryptocurrency networks like Bitcoin itself!