Along the way, this is a new breakthrough in the Bitcoin blockchain.
RGB is a smart contract system that provides scalability and privacy for the Bitcoin and Lightning network. It allows you to issue and manage different types of assets, working with the Lightning network and leaving no trace on the blockchain.
RGB also provides a high level of privacy through zero-knowledge encryption. It also has independent scalability from the Bitcoin time chain.
RGB is not a blockchain, but a type of DAG where there is no information about the full state of the network. Once you create a smart contract and transfer state to another party, you have no control over that state and information about its development. For example, as an asset issuer, you do not know who owns the assets you issue. You cannot tell which output you are paying for or transferring rights to, since the party receiving the data provides output information cobbled together from random data.
RGB is a partial state smart contract that remains globally consistent through the use of one-time seals.
As a user, you can confirm that the resulting state has not been tampered with, has been uniquely captured, and there have been no double spend events.
Public consensus on client-side validation rules also ensures that each subsequent owner of the asset will apply the same validation rules.
The genesis-level schema defines the validation rules for each asset/state, ensuring social consensus.
