# Federico Tenga - RGB Magic: Client-Side Contracts on Bitcoin (Highlights)  ## Metadata **Review**:: [readwise.io](https://readwise.io/bookreview/37860060) **Source**:: #from/readwise #from/reader **Zettel**:: #zettel/fleeting **Status**:: #x **Authors**:: [[Federico Tenga]] **Full Title**:: RGB Magic: Client-Side Contracts on Bitcoin **Category**:: #articles #readwise/articles **Category Icon**:: 📰 **URL**:: [bitcoinmagazine.com](https://bitcoinmagazine.com/technical/rgb-magic-client-contracts-on-bitcoin) **Host**:: [[bitcoinmagazine.com]] **Highlighted**:: [[2024-02-19]] **Created**:: [[2024-02-22]] ## 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