claude-dev-suite RGB Protocol
RGB is a system of client-side validated smart contracts on Bitcoin and Lightning. Maintained by LNP/BP Standards Association
- RGB Consortium.
Repos:
github.com/RGB-WG— main RGB working group.github.com/RGB-Tools/rgb-lightning-node— LN integration.
Concepts
Client-side validation
RGB contracts don't put state on Bitcoin's chain. Instead:
- Contracts publish schema + state transitions.
- Owners hold cryptographic proofs of their balances.
- Bitcoin txs commit to RGB state via Taproot tweaks (anchor commits).
- Verification: walk the proof chain back to issuance.
Schemas
RGB schemas define contract types:
- Fungible asset (RGB20).
- Non-fungible token (RGB21).
- Custom (e.g., medical records, supply chain) via AluVM scripts.
AluVM
RGB's virtual machine for contract logic:
- Stack-based.
- Register-machine with strict resource limits.
- Smart contract code runs client-side during validation.
RGB Lightning Network (RLN)
rgb-lightning-node (RLN node) is an RGB-enabled LN node:
- Lightning channels can carry RGB assets.
- Each commitment tx has an extra output anchoring the RGB state transition.
- Asset transfers via standard Lightning HTLCs with RGB-asset metadata.
Recent (2026)
- March 2026 update: refactored payment logic, BOLT12 integration, resource-oriented architecture.
- Desktop client for RGB Assets launched March 2026 (first product-ready RGB asset desktop app).
Bitlight Labs
Major contributor; runs testing infrastructure for RGB Lightning.
USDT on RGB
Tether announced (August 2025) intent to issue USDT natively on RGB-compatible Lightning. Rollout in progress.
Compared to Taproot Assets
| Aspect | RGB | Taproot Assets |
|---|---|---|
| Backing | LNP/BP Association | Lightning Labs |
| Smart contracts | Yes (AluVM) | Limited |
| LN integration | rgb-lightning-node | tapd + LND |
| Schema | Multiple (RGB20, RGB21, custom) | Single asset model |
| Maturity | Beta production (March 2026) | v0.7 production |
| Wallets | Limited | Wider (LN Terminal, etc.) |
Use cases
- Stablecoins (USDT on RGB).
- Custom smart contracts for regulated assets, NFTs, supply chain tokens.
- Programmable money with privacy by default (validation is client-side; on-chain only sees Taproot commitments).
Architecture
[User wallet]
- Holds RGB state proofs locally.
- Commits state to Bitcoin via Taproot anchor.
[Counterparty wallet]
- Receives state transition + proof.
- Validates client-side back to genesis.
Privacy: chain analyst sees only Taproot outputs, not asset amounts or recipients.
Implementations
- rgb-core — Rust core libraries.
- rgb-cli — command-line tooling.
- rgb-lightning-node — modified LDK with RGB anchor support.
- rgb-lightning-sample — example apps.
Common bugs
- Lost state proof = lost assets (unrecoverable, no on-chain history).
- LN state desync between channel updates → RGB commitment mismatch.
- AluVM contract bugs → logic errors hard to detect post-issuance.
- Wallet incompatibilities (different RGB schema versions).
Status (late 2025 / 2026)
- Production RGB Lightning beta.
- USDT-on-RGB rollout.
- Wallet ecosystem expanding (RGB Tools, BitMask, others).