# Federico Tenga - RGB Magic: Client-Side Contracts on Bitcoin (Highlights)  ## Highlights - But what if we could design a system where the terms of the contract are executed and validated only by the parties involved, rather than by all members of the network? ([View Highlight](https://read.readwise.io/read/01hpzf4stsywjmfjnvc16qc924)) ^679757165 - A better approach is to place the commitment in a predefined Bitcoin transaction, more specifically in a transaction that originates from an unspent transaction output (UTXO) to which the ownership of the asset to be issued is linked. ([View Highlight](https://read.readwise.io/read/01hpzf5pvgmjyf8mx8t4bbxgva)) ^679757184