The first wallet based on the RGB protocol for smart contracts on Bitcoin is already under development, and will allow not only to use the main network and the Lightning network, but also that collectibles, non-fungible tokens (NFT) can be issued and shared .
This wallet, called MyCitadel, is the first implementation in a wallet, so far, of the RGB protocol, introduced almost three years ago by the Italian developer Giacomo Zucco. The idea behind this protocol is that users can create and manage tokenized assets on Bitcoin with validations without going through the main chain and, therefore, without waiting for confirmations in the blocks of Bitcoin.
Dr. Maxim Orlovsky, developer of the LNP / BP Standards Association, explained during a virtual meeting that “the main idea of making this wallet is to make sure that RGB works in the practice. ”
Orlovsky explained that, in a first stage, MyCitadel will only support Bitcoin and the Lightning Network, the network of payment channels that allows instant transactions with very low commissions in bitcoins. But then the creation and management of NFT will be enabled , one of the most fashionable topics in the cryptocurrency ecosystem today.
MyCitadel will be available to be used on iOS, Android and PC operating systems: macOS, Linux and Windows. Being open source, anyone with the necessary knowledge can build a wallet based on its code, with the aforementioned support for RGB, Lightning and the Bitcoin mainnet.
Orlovsky commented that MyCitadel has a node-based design, which allows interoperability and gives the option that various connected computers can see the information about the tokens issued in RGB .
In the wallet’s Github repository, it is stated that MyCitadel is compatible not only with the aforementioned protocols. Also supports multi-signature, partially signed transactions and commission selection , in addition to Taproot and Schnorr signatures.
To run, MyCitadel can connect to an RGB node and a Lightning Network node. Also, “requires an external Electrum server accessed through the ElectrumX protocol,” adds the text.
Although the concept behind RGB was presented by Zucco in 2018, it was in mid-2020 that the trial version was released. At that time, Orlovsky referred to RGB as “the correct way to execute smart contracts”, since data from the blockchain is not used, is functional both on the main chain as in Lightning, is not dependent on a token and is private.
Advanced transactions and NFT on the Lightning Network
With the development of the RGB protocol, progress is being made in the implementation of more advanced transactions and NFT on the Bitcoin Lightning Network.
The market for NFTs, or collectible and ‘unique’ tokens issued on different blockchains, seems to be fast becoming the new trend in the world of cryptocurrencies .
The NFT fever has reached such a point that in a period of one month up to USD 500 million were traded. As reported by CriptoNoticias, between February 4 and March 4 that milestone was reached and thus exceeded the USD 300 million moved in collectibles throughout 2020.
This market contemplates all kinds of approaches: there are those who consider it a new medium for art, others have launched platforms for sports fans. Meanwhile, the fever has even reached fast food chains like Taco Bell; or the social network Twitter, with the sale of tweets (publications on the network) as collectibles. For example, the first tweet from Twitter creator Jack Dorsey is being auctioned for more than $ 2 million.
However, the wave has not been well received for all. And there are those who consider that it is only a fad and that most NFTs will end up lacking in value, as is the position of Charlie Lee, creator of Litecoin.
At least the “unique” nature of each NFT is already in question. Each token of this type is unique on the blockchain where it is issued, but nothing prevents a token that represents the same painting, photograph or video, for example, from being issued. And indeed, this media already reported this Thursday, March 11, that some Ethereum NFTs are duplicated on the blockchain of the Binance exchange, the Binance Smart Chain.