Innovation Focus of the Bitcoin Ecosystem: RGB Protocol and Cosminmart Project

The Bitcoin ecosystem has always been the focus of technological innovation, with each advancement injecting new vitality into it. Among them, the RGB protocol, as a remarkable technological innovation, has been dedicated to building a universal smart contract system based on Bitcoin and the Lightning Network since its proposal in 2017. Recently, the RGB team released the V0.10 version client, attracting widespread attention.

Recently, Valestin, co-founder of Cosminmart, gave an interview sharing insights on the project's recent developments, ecological growth, and perspectives on the current BTC ecological development, technological achievements, and future technological roadmap. Here are the main points from the interview.

Project Introduction

Valestin introduced that Cosminmart is an ecosystem based on the RGB protocol, deployed on the Lightning Network, focusing on the issuance and trading of RGB20 tokens. The project includes the improvement of RGB infrastructure, launching Bifrost, developing Cosm Wallet, and Bitswap (the first Bitcoin AMM Dex based on smart contracts).

The COSM wallet is built on the Bitcoin Lightning Network and supports RGB protocol assets. In the future, it will support the management of other Lightning Network assets and low-cost real-time transfers. Currently, the wallet has released a Chrome extension version and is in the public testing phase.

Bitswap aims to become the first AMM Dex implemented based on smart contracts on Bitcoin, similar to Uniswap V1 on Ethereum. It will create liquidity pools between RGB tokens and Bitcoin, injecting stronger liquidity into the Bitcoin ecosystem, facilitating the issuance and trading of project tokens.

Project Vision

When asked why he was fully committed to the RGB project, Valestin stated that they conducted a comprehensive evaluation of various scaling solutions for the Bitcoin ecosystem. The popularity of Ordinals proves that Bitcoin assets can gain market recognition, while also showing that the market lacks fresh narratives.

Valestin believes that RGB is an almost perfect Bitcoin scaling solution and entrepreneurial track. It enables transactions based on the Lightning Network, featuring high TPS and low transaction fees; relying on Bitcoin's security, it supports a more powerful smart contract system without the need to modify the mainnet.

In addition, the CEO of a well-known stablecoin company is also a staunch proponent of the RGB protocol and has announced plans to issue stablecoins based on the RGB protocol. These factors have led Valestin to see the possibility of large-scale applications being realized on Bitcoin.

Challenges Faced

Although RGB technically shows advantages, it still faces some challenges, especially in the early stages of the ecosystem. Valestin acknowledges that RGB has been in development for many years, the community is still small, the enthusiasm is low, the infrastructure is not well-developed, and it has not gained attention from the mainstream market and venture capital institutions.

He pointed out that the biggest problem with RGB is the shortage of developers. The core personnel and the deeply involved team have very strong development capabilities, but are limited by a lack of manpower. Many aspects can only operate, and the engineering implementation still needs to be improved. Valestin believes that this is precisely where their team needs to actively improve.

Cooperation with RGB Official

Regarding the cooperation with the RGB official, Valestin stated that both parties have reached a consensus. He explained that the RGB Association is a Swiss non-profit company that has completed the underlying development of the RGB protocol. Contrary to common understanding, it is the project party that supports the association, rather than the association providing funding to the project party.

The RGB Association holds an idealistic philosophy, rejecting investments from venture capital and commercial companies, avoiding commercialization, and not issuing official tokens. They aim to ensure the purity of the technology, free from control by commercial entities. Valestin stated that as a member of the RGB development team, he hopes to see the RGB technology applied more widely without compromising its original intent and principles.

Competitive Landscape and Ecological Development

When it comes to the competitive landscape, Valestin stated that the competition within the RGB ecosystem is open and friendly. Currently, there are not many teams with brand recognition and mature products. In terms of wallet applications, Cosminmart has developed a robust RGB asset communication storage standard protocol, with plans to disclose details and open source by the end of the year.

They will also improve the underlying infrastructure of the RGB protocol and launch the first smart contract-based AMM Dex on Bitcoin. Valestin also mentioned collaborations with other projects, such as the upcoming NFT trading platform DIBA-Bitmask.

Future Outlook

Looking to the future, Valestin stated that Cosminmart will focus on the trading infrastructure of the RGB20 token and actively promote the listing of RGB tokens on major exchanges. He hopes that more entrepreneurial teams will participate in the development of the RGB and Lightning Network ecosystem, and Cosminmart will also provide technical, resource, and financial support for early-stage entrepreneurial teams.

In the long-term plan, Cosminmart will invest in the DeFi field of RGB, such as formulating lending protocol standards and promoting the development of Lightning Network applications. Valestin hopes to contribute to the large-scale application of Bitcoin, promote the development of the entire industry, and realize more valuable blockchain applications.

The RGB protocol is notable because it adopts a series of advanced technologies based on Bitcoin and the Lightning Network, meeting user demands for privacy, scalability, and programmability, without triggering a Bitcoin blockchain fork. With the popularity of the Ordinals protocol and the development of the Lightning Network, Bitcoin Layer 2 solutions like RGB are gaining renewed attention. The combination of these technologies and new ideas could foster new possibilities, driving further development of the Bitcoin ecosystem and expanding its functions and application areas.