Strong ownership: smart contract operates "owned state" which have a well-defined owner(s). Nobody except this owner(s) can update the state of the contract. Contracts always define types of rights as a set of operations which may be performed over the contract and these rights are assigned to be either "public" or "owned", utilizing right-specific validation logic.
Confidentiality: data should be known only to contract participants, namely state owners, unless they decide to make them public (disclose). All parts of the protocol must be protected from tools like chain analysis and the protocol should not store any information in the public ledgers.
Separation of concerns: the protocols must be designed in a modular and layered way, where each module solves one and only one task. The layers must be well abstracted, meaning that the layers below must be unaware of the structure of the layers above.
Extensibility: it must be possible to create advanced forms of smart contracts without the need to change the core of the protocol or add code & recompile RGB libraries.
Determinism: the RGB validation logic must be deterministic in a sense that giving the provided set of inputs and the state of commitment layer (blockchain or lightning channel) it always produces the same result independetly of the used platform or linked libraries. This is achieved by two main components: (1) the core of the validation logic generic to all contracts is implemented in rust language and must be used from any system running RGB using language bindings, (2) all contract-specific validation logic runs on AluVM – a highly deterministic functional virtual machine providing platform-independent instruction set.
LNP/BP interoperability: RGB must work well with all existing bitcoin and lightning technologies and be compatible with possible future upgrades.
Following these principles we were able to build the system which is
Creates zero blockchain footprint
Portable, working not only on
Works well with Lightning Networks and other bitcoin technologies like Taproot, (future) eltoo, DLCs (and other forms of scriptless scripts), atomic swaps, sidechains etc.
Learn more on how we deal with layer abstraction, confidentiality, ownership, extensibility & determinism in the following sections: