# Maxim Orlovsky et al. - RGB Blackpaper (Highlights) ![rw-book-cover|256](https://readwise-assets.s3.amazonaws.com/static/images/article2.74d541386bbf.png) ## Metadata **Review**:: [readwise.io](https://readwise.io/bookreview/37909883) **Source**:: #from/readwise #from/reader **Zettel**:: #zettel/fleeting **Status**:: #x **Authors**:: [[Maxim Orlovsky]], [[Peter Todd]], [[Giacomo Zucco]], [[Federico Tenga]], [[Olga Ukolova]] **Full Title**:: RGB Blackpaper **Category**:: #articles #readwise/articles **Category Icon**:: 📰 **URL**:: [readwise.io](https://readwise.io/reader/document_raw_content/143613731) **Host**:: [[readwise.io]] **Highlighted**:: [[2024-02-20]] **Created**:: [[2024-02-22]] ## Highlights - RGB smart contracts operate with client-side validation paradigm, meaning that all data is kept outside of bitcoin transactions, i.e. bitcoin blockchain or lightning channel state. ([View Highlight](https://read.readwise.io/read/01hq3ad536v3zzhmgh1j0mx20m)) ^680684616 - do not require to store any data outside of cryptographic commitment on-chain ([View Highlight](https://read.readwise.io/read/01hq3adgen58ckxnqby1d07nk7)) ^680684634 - RGB leverages Bitcoin script for its security model and definition of the ownership and access rights. ([View Highlight](https://read.readwise.io/read/01hq3advw87075q5346qv72s88)) ^680684669 - Each RGB smart contract is represented by some genesis state, created by smart contract issuer (or, put simply, issuer) and a directed acyclic graph (DAG) of state transitions kept in form of client-validated data (i.e. this data is not stored on the blockchain or within LN transactions/channel state). ([View Highlight](https://read.readwise.io/read/01hq3aeg2jesaafse84v1gfknt)) ^680684698 - The state is assigned to unspent bitcoin transaction outputs, which defines them as single-use seals. The party that is able to spend corresponding transaction output is named a party owning a state: it is a party that has the right to change the corresponding part of the smart contract state by creating a new state transition and committing to it in a transaction spending the output containing a previous state. ([View Highlight](https://read.readwise.io/read/01hq3af0pefc3t268wx0631hme)) ^680684767