So, Tether just dropped a press release saying they're gonna roll out USDT on the RGB protocol, which means we’ll finally have a stablecoin issued right on Bitcoin.
I hadn’t come across the RGB protocol before, but from what I’ve dug up, it seems like it’s a Layer 2 solution using zero-knowledge proofs.
Anyone got more details on this?
If you want to know more about what Really Good Bitcoin (RGB) is, you can read this news about the USDT that will be issued on RGB: https://www.ccn.com/news/crypto/usdt-on-bitcoin-tether-embraces-rgb
This will really be a good development. The transaction fee will likely also be very cheap.
I googled this RGB protocol, and from what I understand, sending USDT on RGB will be completely private and the token cannot be frozen like USDT on Ethereum or Tron. Transactions on RGB are free. RGB tokens are trustless, but you need to run your own RGB and Bitcoin full node. These advantages . privacy, trustless, and no token freezing . will attract a huge number of USDT users. If they want trustless USDT, they must run their own RGB node and Bitcoin full node. When the issuer mints tokens or settlement occurs, the fee is paid in Bitcoin, just like on Lightning when channels are opened and closed.
The real question is how many normal Bitcoin users are using RGB? I have not even encountered a wallet that supports it and wouldn't know how to use it myself.
Somehow I doubt this last part. Do you have a source? The key feature that stablecoin issues love is being able to freeze the token when they want to.
What you wrote does not make any sense in English. I have reasonable doubt because they use this feature on all blockchains where they operate. I asked for a source, I don't need a lecture on doubting.
The last part isn't true, tether can enforce blacklist on the contract level.
RBG is just a contract functionality that lives on top of Lightning network (btc layer 2) so the contract maker can definitely make some censorship or blacklist at that level.
Trust me with the genius ACT tether isn't in any way releasing decentralized stablecoin.
I had long waited for more developments on bitcoin Lightning Network, I guess we are closer to that point than ever and this will solve the issue of high network fees, volatility and make the Lightning Network easier to use unlike what we have at the moment that is too technical for a beginner to use. This will definitely come with its challenges but with time those will be addressed and improved. I can only imagine what opportunities awaits us when this is fully developed.
That's funny because didn't they retire Omni very recently?
I don't understand why they would want to put a stablecoin on the Bitcoin network after they have done that.
I have to admit that Im not technically competent, but I read that ownership of RGB tokens is tied to Bitcoin UTXOs, so I concluded that they cannot be frozen unilaterally. If anyone with technical expertise could explain, it would be interesting to
To be fair, Tether itself started "atop Bitcoin" as an Omni Layer token and it was only later that it expanded to other blockchains and it was because you can't actually enforce any of its scripts on Bitcoin (it is not part of the Bitcoin protocol) but you can do it on an actual token creation platform.
So in short they are not "enabling" anything new on top of bitcoin.
Also what they are creating is not "native" to Bitcoin, since it is still happening elsewhere and is not part of Bitcoin protocol.