How will the BiHelix|RGB-LN supernode catalyze the next evolution in Bitcoin’s native ecosystem?

11 min readMay 29, 2024

By： TokenPocket, BiHelix

Intro

While the current Bitcoin (BTC) ecosystem is experiencing rapid growth, with over 30 Layer2 solutions emerging, the majority of projects are relying on the Ethereum Virtual Machine (EVM) technology stack and cross-chain Bridges to enhance scalability. The ongoing development stage of the Bitcoin ecosystem indicates that while this approach allows for quick deployment of main network construction, there are concerns regarding long-term sustainability. Additionally, these solutions are not tightly integrated with the native Bitcoin blockchain and heavily depend on cross-chain bridges, posing risks to security and decentralization.

What about solutions that are highly integrated with Bitcoin’s native blockchain?

As a smart contract protocol, the RGB protocol stands out as the sole Bitcoin native solution with over four years of mature code base and sustained maintenance by core developers (LNP/BP Association, etc.). The RGB protocol effectively resolves the Turing completeness problem of the Bitcoin blockchain, thereby removing constraints on the upper application ecology. In contrast to utilizing EVM virtual machines for extending BTC based on the UTXO model, the RGB protocol fully aligns with the fundamental definition of Bitcoin Native. Furthermore, in conjunction with the Lightning network, the RGB protocol enhances Bitcoin’s
scalability, enabling support for Web2 application scenarios with high TPS requirements and offering boundless potential for widespread adoption.

Core Concepts

UTXO：

The concept of UTXO (Unconsumed Transaction Output) is crucial for comprehending Bitcoin transactions. Unlike traditional bank accounts, the UTXO model in Bitcoin does not involve the notion of an account; it is akin to carrying a wallet with various denominations of bills instead. Despite appearing unconventional, this approach offers significant advantages. Imagine that you have several bills in your wallet, each with a different face value. The UTXO model of Bitcoin is like these bills, with each output being a “Bitcoin bill.” In Bitcoin transactions, each transaction can contain multiple inputs and outputs. The input is the “Bitcoin note” you use to pay, while the output is the amount you paid and the part of the change. For example, if you go to a coffee shop and buy a cup of coffee, the price of the coffee is 0.03 bitcoin. You take out a 0.05 bitcoin “bitcoin bill” to pay, and this 0.05 bitcoin input generates two outputs: one is 0.03 bitcoin to pay for coffee, and the other is 0.02 bitcoin for change. Those “Bitcoin notes” that have not yet been used for payment are UTXOs (Unspent transaction outputs). These UTXOs are still in your “Bitcoin wallet,” waiting for you to use them in future transactions.

Enhanced performance: The UTXO model is highly suitable for concurrent processing in distributed systems. Similar to managing multiple bills simultaneously instead of a single large account, this enables the Bitcoin network to efficiently handle a large volume of transactions.
Robust privacy protection: The UTXO model also offers advantages in terms of safeguarding privacy. Due to the independence of each “Bitcoin bill,” it is possible to generate multiple UTXOs using different addresses. This can be likened to having numerous small wallets, each containing a portion of funds, making it challenging for others to monitor all your transactions.

RGB：

The RGB network is a Bitcoin-based protocol that utilizes the Lightning Network (LN) to solve the scalability problem of Bitcoin and tokenize digital assets on the Bitcoin blockchain. The RGB protocol introduces the ability to create and execute smart contracts on the Bitcoin blockchain. Smart contracts are self-executing programs that can be automatically executed according to predefined rules and conditions, eliminating the need for third parties and reducing the risk of fraud and manipulation. With the RGB protocol, developers can build dApps on the Bitcoin network, leveraging smart contracts to automate various processes and expand Bitcoin’s use cases.

The Bitcoin blockchain can be conceptualized as a highly secure, extensive public ledger accessible to all for transaction viewing. It functions akin to a publicly available journal, with individual transactions documented on separate pages. While this open journal is exceptionally secure, each recorded transaction necessitates time and resources. In contrast, the RGB protocol serves as an additional compact ledger capable of processing and documenting more transactions without requiring inclusion in the expansive public journal every time. This smaller ledger maintains robust security by leveraging the Bitcoin main chain while offering enhanced flexibility and expedited processing capabilities.

Enhanced scalability: By eliminating the need to record RGB transactions on the Bitcoin main chain for every transaction, the overall system’s capacity for handling transactions is improved, resulting in greater efficiency.
Heightened privacy: RGB transaction details are kept off the public Bitcoin blockchain, providing a private ledger where only the involved parties have access to the information.
Reinforced security: While transactions are recorded on a separate ledger, they still rely on the robust security of the Bitcoin main chain, akin to storing a small ledger in an extremely secure safe.

The Lightning Network：

The Lightning Network is a secondary payment protocol constructed on the Bitcoin blockchain, specifically designed to address the scalability issue of the Bitcoin network. It operates as an expedited channel for conducting numerous transactions without necessitating individual recording on the primary ledger, with final settlement occurring upon closure of the transaction, akin to completing a lap in a fast lane prior to settling charges at a toll booth.

Fast transactions: The Lightning network allows users to make transactions off-chain, which can be completed in seconds.
Low transaction fees: Lightning Network’s transaction fees are very low, as low as a few cents per transaction.• Scalability: The Lightning network is able to support a large number of users and transactions, thus solving the congestion problem of the Bitcoin main chain.
Privacy: Transactions on the Lightning network are anonymous and do not appear publicly on the Bitcoin blockchain.

Although the Lightning network has been in operation for many years and is already one of the best solutions to solve the scalability of the Bitcoin blockchain, it has not fully achieved the desired effect. One major issue is that it doesn’t support complex smart contracts. Smart contracts are like self-executing contracts, and the Lightning Network has technical limitations in this regard. Even with the upgraded Taproot Protocol designed to enhance Bitcoin’s smart contract capabilities, the technical progress is still slow, and the actual application will take time to land.

Evolution and optimization of RGB protocol

The origin of the RGB protocol dates back to 2018 and was discussed and proposed by members of the Bitcoin community, Giacomo Zucco, Peter Todd, and Alekos Filini. The goal is to design a protocol that takes advantage of Bitcoin’s security and decentralized features while supporting more complex functions such as asset issuance and smart contracts. To achieve this, they began to investigate how asset and state information could be combined with Bitcoin’s UTXO model. The core idea of the RGB protocol is to embed asset issuance, ownership, and status updates into the UTXO model of Bitcoin through client-side validation, thereby avoiding dependence on the full nodes of the Bitcoin network. This differs from the way the BRC-20 protocol relies on full nodes of the Bitcoin network, making the RGB protocol more flexible and scalable.

Since 2019, significant progress has been made in the design and implementation of the RGB protocol, and the original concept has been improved and optimized for practical applications. In 2021, the RGB protocol will be integrated with the Turing-complete AluVM virtual machine. AluVM is a pure function RISC virtual machine designed for advanced smart contract development. Unlike other virtual machines, AluVM’s register-based architecture does not allow random memory access, making it more robust and secure. This integration brings stronger smart contract execution capabilities to the RGB protocol. Similarly, the RGB protocol team built a decentralized Schema Store. This mechanism allows developers and users to create and manage complex smart contracts and assets on the Bitcoin network, further enhancing the flexibility and scalability of the RGB protocol.

In 2022, the LNP/BP Standards Association launched an official website for the Contractum language. Contractum is a functional declarative programming language tailored to build smart contracts for RGB technology. The introduction of this language simplifies the process for developers to create smart contracts on the Bitcoin and Lightning networks, making more complex financial and business applications possible.

In April 2023, the LNP/BP Association announced the release of RGB v0.10 and focused on developing support for the Lightning network. Through this integration, RGB assets can be
transferred quickly and at low cost over the Lightning network, thereby improving asset liquidity and efficiency. In addition, the RGB protocol is expected to enable the Lightning network to have full smart contract capabilities, making up for the limitations of Bitcoin and Lightning networks on smart contracts. At the end of the same year, the idea of RGB v0.11 version was proposed, focusing on asset distribution and security-related content. In RGB, users can use the Bitcoin Light client at a very low cost to check parts of the transaction with both Bitcoin and RGB. RGB is also lightweight compared to on-chain contract systems. Although RGB v0.11 is currently in the final testing phase, it is believed that the release of this subsequent version will mark an important milestone in the technical implementation and practical application of RGB.

Enrich the application scenarios of Bitcoin

The UTXO model-based RGB protocol combined with the Lightning network solution provides a perfect path for Bitcoin (BTC) to solve the scalability and Turing completeness problems it has long faced. This innovation not only enhanced Bitcoin’s technical capabilities but also gave it real potential as a global currency.

The long-term value of Bitcoin as a cryptocurrency depends on the breadth and depth of its application ecosystem. With the RGB protocol, we are able to build a BTC-based value transmission system on the Bitcoin native blockchain, similar to the position of the US dollar in the global economy. The system is capable of supporting a variety of complex asset issuance and smart contract functions, thus introducing a large number of commercial applications with practical application scenarios.

The RGB protocol provides an efficient and secure way to manage and transfer digital assets by combining asset and state information with Bitcoin’s UTXO model. The addition of the Lightning network further improves the scalability of the Bitcoin network, allowing fast, low-cost off-chain transactions that are ultimately settled on the Bitcoin blockchain. This combination enables the Bitcoin network to support not only simple value transfers, but also more complex financial and commercial activities. For example, smart contracts based on the RGB protocol can be used to automate the execution of various predefined rules and conditions, eliminating dependence on third parties and reducing fraud and operational risks. This has introduced new application scenarios for the Bitcoin ecosystem, such as decentralized finance (DeFi), application products such as gaming and social networking, and digital asset management. It not only enhances the technical capabilities of Bitcoin, but also injects new vitality and potential into its ecosystem. This innovation transformed Bitcoin from a simple store of value to a comprehensive platform that supports a wide range of applications. With the landing of more and more commercial applications and practical use cases, the value and application prospects of BTC will also be further enhanced, consolidating its important position in the global economy.

BiHelix: Accelerate the innovative development of empowered RGB-LN

The BiHelix project is committed to the engineering and commercialization of RGB-LN, and its core product is the RGB super node that can be linked to the Lightning network. Through node optimization, BiHelix aims to further improve the performance and efficiency of the Bitcoin network, enabling it to handle more transactions and more complex applications, thereby providing a more robust infrastructure for the Bitcoin ecosystem. Other important BiHelix products include Wallet SDK, Marketplace, and decentralized Schema Store, which together form BiHelix’s comprehensive ecosystem.

BiHelix Wallet SDK

The BiHelix Wallet SDK is an innovative solution designed for Web3 users and developers that provides secure and reliable support for native Bitcoin transactions, ensuring seamless digital asset management. As the basic traffic entry point for the Web3 ecosystem, the BiHelix Wallet SDK integrates the RGB protocol and Lightning Network (LN) technology, enabling developers to easily integrate the RGB protocol and Bitcoin payments into their applications with minimal learning. This tool provides powerful and flexible support for Web3 asset management, enabling users to easily control and manage their digital assets.

BiHelix Marketplace

BiHelix Marketplace is the first trading platform to offer RGB asset trading connected to the Lightning network, where users can experience extremely low-cost and fast asset issuance and
trading. Through the BiHelix Marketplace, users can efficiently manage and trade their RGB assets, and enjoy a fast and secure trading experience.

BiHelix Decentralized Schema Store

BiHelix Decentralized Schema Store collects schemas for various application functions and provides corresponding Schema acquisition services for developers. This allows developers to build applications on Bitcoin’s native blockchain with one click, greatly simplifying the development process and enhancing the flexibility and scalability of smart contracts.

In addition, BiHelix is working on and optimizing a way to use database storage to replace the existing RGB Stash file format. This improvement will significantly improve the efficiency and reliability of data management, making large-scale data processing and access more efficient. Through the innovation and improvement of the product matrix, the BiHelix project has not only enhanced the technical capabilities of the Bitcoin network, but also injected new vitality into its ecosystem and promoted the application of Bitcoin in more commercial areas. BiHelix is committed to building a stronger, more efficient, and more scalable Bitcoin ecosystem that enables Bitcoin to realize its full monetary properties and broad application prospects.

TokenPocket x BiHelix (RGB-LN)

The power of Bitcoin native BiHelix offers a high-performance token offering solution based on Bitcoin Layer1, designed to attract and integrate more Bitcoin native users. TokenPocket is about to complete the integration of BiHelix wallet SDK and launch the node of BiHelix (RGB-LN). TokenPocket also recently launched Runes’ existing assets on the market, further demonstrating its support for Bitcoin’s native technology. Through the partnership, BiHelix and TokenPocket will jointly open a low-cost, high-performance token offering for the RGB protocol. Users will be able to experience the unlimited potential of Bitcoin’s native RGB protocol. We believe that the lower cost and higher efficiency of our solution will make it easier for ecological customers to issue RGB20 tokens. This collaboration not only demonstrates BiHelix and TokenPocket’s vision to move forward together in the Bitcoin native ecosystem but will also provide users with more robust and diversified services to develop further and mature the Bitcoin ecosystem. Let’s look forward to witnessing the power of Bitcoin natives!

About BiHelix (RGB-LN)

BiHelix is a smart contract network ecosystem composed of a bunch of RGB super-nodes connected to the Lightning Network. We aim to make it easier for developers to use, increase the use cases for Bitcoin, and address the challenges of scalability and Turing incompleteness faced by the Bitcoin blockchain.

About TokenPocket

TokenPocket is the world’s leading multi-chain self-custodial wallet and supports EVM-compatible networks such as Ethereum, BNB Chain, Polygon, and Ethereum Layer2, as well as non-EVM-compatible networks like Bitcoin, TRON, Solana, and Dogecoin. The Recovery Phrase and Private Key are stored in the user’s own device and the user can fully control his own crypto assets.

TokenPocket product lineup encompasses Mobile Wallet, Chrome Extension Wallet, and KeyPal Hardware Wallet, forming a comprehensive ecosystem.

With the TokenPocket wallet, you can easily connect with 1000+ networks, thousands of DApps, and the whole Web3 ecosystem! Additionally, users can enjoy one-stop decentralized trading services and on/off-ramp services provided by TokenPocket.

TokenPocket has provided reliable services for over 25 million users around the world. The number of monthly active users exceeds 3.5 million and is located in more than 200 countries and regions around the world.