Panama City, Panama, Feb. 06, 2024 (GLOBE NEWSWIRE) -- Gate Ventures, the venture capital arm of the Gate.io crypto exchange, recently led the seed round for Bitlight Labs, an innovative blockchain solutions provider utilizing RGB protocols to transform the Bitcoin ecosystem, bringing Layer 2 smart contract technology to Bitcoin.
Since Satoshi Nakamoto launched the first node in 2009, Bitcoin has proven to be the safest decentralized network. As Bitcoin adoption spreads, it now grapples with scalability issues. The Lightning Network (LN), a Bitcoin scaling solution capable of ~1 million transactions per second (TPS), was developed based on the concept of off-chain protocols, allowing instant Bitcoin transactions. However, it remains limited in its support for smart contracts.
Enhancing Bitcoin While Preserving Security
Centred on Really Good for Bitcoin (RGB) protocols, Bitlight Labs offers scalability over layer 2 and 3 solutions while maintaining Bitcoin-level safety and privacy guarantees. RGB protocols support more complex smart contract functionality, enabling users to inspect, execute, and independently verify a smart contract at any time without incurring additional costs.
The foundation of RGB protocols draws from Peter Todd’s exploration of single-use seals and client-side validation. Envisioned in 2016 by Giacomo Zucco as an enhanced asset protocol for Bitcoin and the Lightning Network, RGB underwent further refinement. Maxim Orlovsky has been spearheading its implementation since 2019, transforming RGB from a concept into a comprehensive smart contract system with active community involvement.
By leveraging RGB protocols, Bitlight Labs is developing multiple products, including the core product–Bitlight Wallet. Bitlight Wallet is the first non-custodial wallet following the LNP/BP Association’s specifications for RGB assets. The wallet is designed to facilitate compatibility between RGB and the Lightning Network, thereby accelerating the growth of the RGB-LN ecosystem.
Kevin Yang, Managing Partner at Gate Ventures, said: “People have been criticizing Bitcoin as too slow in technical development. But in recent years, innovation on Bitcoin has been revived. Now is the time to build on Bitcoin.”
He further added: “Bitcoin is a $1 trillion asset, more than any others combined in the crypto space. With the recent approval of spot ETFs, Bitcoin has the most potential for mass adoption. The value of Bitcoin’s security could be further leveraged by exploring smart contracts functionalities on it.”
About Gate.io
Established in 2013, Gate.io is one of the world’s earliest cryptocurrency exchanges and a leader among compliant and secure digital asset platforms, offering diverse trading services with 100% user-verifiable Proof of Reserves. Further, the platform has consistently ranked as one of the top 10 cryptocurrency exchanges on CoinGecko based on liquidity and trading volume.
About Gate Ventures
Gate Ventures, the venture capital arm of Gate.io, is focused on investments in decentralized infrastructure, middleware, and applications that will reshape the world in the digital age. As a long-term investor, Gate Ventures is committed to offering support in product development, operation scaling, and global growth for its portfolio companies.
