Bitfinex supports Bitcoin with RGB and OmniBOLT

RGB is a protocol first conceived by Bitcoin Core developer and crypto consultant Peter Todd, which aims to bring smart contract and tokenized assets to the Bitcoin blockchain. RGB is also sponsored by the Poseidon group of which The Cryptonomist is part.

OmniBOLT, on the other hand, is the first specification of a stablecoin for Lightning Network, based on Omni, and is designed to facilitate different protocols and permissionless blockchain.

Omni is also the first platform on which Tether’s USDT was based, a company that belongs to the same group as Bitfinex.

Both projects, RGB and OmniBOLT, should be able to start the first test transactions at the end of this year.

Bitfinex supports Bitcoin: the investment
Bitfinex started sponsoring both projects in mid-2019, and so far has already invested around £350,000 to promote their development.

This sponsorship is part of Bitfinex’s mission to build an open financial system, grow the Lightning Network and promote the use of BTC for traditional payments.

Currently, the exchange is one of the few nodes that have already integrated LN withdrawals and payments, and its nodes have already routed thousands of transactions through this new channel that allows very fast and cheap BTC transfers.

To date, the Bitfinex LN node is one of the largest capacity nodes within the Lightning Network.

Bitfinex CTO, Paolo Ardoino, said:

„Bitfinex was the first high-level exchange to support Lightning Network, an extremely scalable peer-to-peer protocol. RGB and OmniBOLT are building networks that allow digital tokens to be issued, sent and received on Lightning Network. In this way, Bitcoin can be the home of DeFi. Bitcoin can be the home of digital resources.

At the moment it is not yet possible to emit tokens such as ERC-20, or NFT, in a totally decentralized way on the Bitcoin blockchain, and RGB uses just the power of the Lightning Network protocol to allow its emission. In addition, LN also solves network congestion problems, as its transactions are carried out off-chain, with very short lead times and negligible costs.

OmniBOLT should also allow the emission of a stablecoin, in some ways similar to Tether, always on the Bitcoin blockchain, thus making it possible to create a new decentralized financial ecosystem based no longer on Ethereum, but on Bitcoin.