After ten years of twists and turns, Tether has returned to its original starting point. Tether is going to deploy native USDT on the Bitcoin main chain again, this time through an RGB protocol controlled by Tether itself. But in fact, Tether's first USDT was deployed on the Bitcoin blockchain back then, relying on the Omni protocol. However, due to various reasons, the Omni protocol withdrew from the historical stage. We will talk about it later when we have time. ） Actually, the RGB protocol is quite interesting. Let me briefly explain its principle. The inspiration for the RGB protocol comes from Peter Todd, the former core developer of Bitcoin (also Todd haha). This principle is called: one-time sealing. It is equivalent to placing a sealed envelope on a designated transaction (UTXO) in Bitcoin. For example, this is 500 Satoshi BTC, but it can represent 100000 USDT. As long as you haven't opened this envelope, it's in your account and represents your balance. If you want to transfer money to someone else, open the envelope and the recipient of your transfer will receive a new sealed envelope. The so-called "envelope" and "seal" are both metaphors, which rely on cryptography to ensure that they cannot be tampered with. These complex cryptographic calculations occur locally, and only one hash is processed on the Bitcoin blockchain. On the one hand, this imposes no burden on Bitcoin; On the other hand, the privacy is also quite good, at least from the perspective of the Bitcoin network, there is no USDT hidden behind this, so relatively speaking, the censorship resistance will be better. Because its cryptographic calculations are all done locally, theoretically, when you receive an envelope, you can verify the money in that envelope, including all transfer records since the beginning of creation. In this way, you can follow the clues and ensure that the funds are genuine and not double spent. This is equivalent to two ledgers: 1. Bitcoin ledger, which is a digest ledger, is a simple hash; 2. All RGB protocol USDT users around the world add up to form a general ledger, ensuring that the money is clearly in vain. This is exactly the state that people in the Bitcoin community pursue the most: to use Bitcoin more often without adding any extra burden to it 。 The reverse case inscription has caused great controversy and even sparked extremely radical proposals like BIP-110 (digging a hole here, we'll talk about it when we have time) Additionally, you may ask a question: Bitcoin is so slow, it takes 10 minutes per block. How can it snatch market share from ETH, Tron, and those almost instant, free L1? The RGB protocol will also support Bitcoin's Lightning Network, which is almost instant and free. Even I think this is an important opportunity for the Lightning Network to rejuvenate. One important reason why no one used the Lightning Network in the past was that it required you to lock in a certain amount of BTC in advance to play, and no one had that much idle money. There is an RGB protocol that allows for the opening of a lightning channel for converting USDT with less than 0.0001 BTC. In the future, you can transfer funds freely, and you still have some idle funds.