SEED VENTURE: From Ethereum to RGB on Bitcoin

5th Dicember 2018

SEED VENTURE, the open source blockchain-based platform for the tokenisation of risk capital destined for the future and the financing of startups in a free competition regime, is told in its technological features.

The SEED VENTURE blockchain-based platform has a tendentially agnostic nature with respect to the underlying protocols, and its development will take place over time on different platforms, united by the satisfaction of the functions necessary for its complete implementation (including: decentralized internal exchange, smart contracts, oracles) .

The compatible Blockchains basically satisfy two eligibility criteria:

  • the existence of a large community of developers;
  • the development of solutions aimed at favoring its scalability in view of a widespread adoption on a large scale.

The first distribution of the platform will be released during the 2019 on the Ethereum Blockchain, since to date it is the most mature and ready to support the functions of SEED VENTURE: the Ethereum protocol is widely tested; provided with solutions to the problems of scalability determined by its adoption; and supported by a large community of developers.

In a second phase SEED VENTURE will move on RGB, the “new standard for the tokenization on Blockchain” of Bitcoin presented at the Building on Bitcoin Conference (Lisbon, July 2018) and currently under construction. The Bitcoin protocol fully satisfies both the eligibility criteria for the choice of the development platform, both for the vast development community and for the brilliant solutions adopted for scalability. Although the oldest and most validated protocol, distributed and resistant to attacks, at present, it does not present all the functionalities necessary for the complete development of the SEED VENTURE platform.

RGB: Elements and Workflow

RGB is the project that was born with the intent to define a system of tokenization on blockchain qualitative, official and uniform for anyone wishing to build projects that involve tokenisation processes, ensuring sufficient levels of security, scalability, privacy, flexibility and compatibility with standards more common. And it solves, optimizing the previous attempts to manage the standardization of emission, conservation and transfer of “tokens” on the Blockchain.

The main features that define and validate the standard with RGB are:

  1. the “client-side-validated” approach to architecture
  2. integration with Bitcoin’s Lightning Network

The “client-side-validated” approach to architecture requires that only one of its functions be delegated to the Blockchain, ie the “proof of publication” of the transactions (the verification of correctness is entrusted to the nodes), so as to guarantee:

  • greater scalability
  • more privacy
  • greater security

The only current limitation of this approach is, for now, the complexity of the “user experience” with a range of “trade off” similar to those of the Lightning Network technology (management of off-line communication between nodes, back-up). It should be noted that RGB, presenting a remarkable affinity of solutions and critical issues with Lightning Network, is already enabled and prepared not only to be compatible, but rather designed and prepared to rely on the precious resources of LN (codebase, tools, libraries and habits).

Further advantage of the integration of RGB with LN concerns the instantaneous, free and private transmission of fungible assets through LN channels, thanks to which it has also been possible to produce a DEX (decentralized exchange between fungible assets).