Lightning RGB: Building an LSP for RGB Assets
Lightning enables RGB assets to move with low fees and near-instant settlement. At the same time, it introduces new concepts and operational requirements for users.
Every Lightning payment takes place within a payment channel. The channel’s participants first commit funds to the channel, and subsequent payments update the allocation of those funds between the two sides. As a result, the amount a user can receive depends on the balance available on the counterparty’s side of the channel and its ability to be transferred toward the recipient.
This requirement—known as inbound liquidity—is unfamiliar to many new users and is precisely what they are least likely to have when they first begin using Lightning. Before receiving funds, they may need to identify a suitable counterparty, establish a channel, and understand how channel balances and liquidity work. Early users of Lightning Bitcoin encountered the same challenge.
The Lightning ecosystem addressed this challenge through the emergence of Lightning Service Providers (LSPs). Professional Lightning nodes package channel liquidity as a service that users can purchase when needed, allowing them to access inbound liquidity without having to manage the underlying complexity themselves.
We are bringing this model to RGB assets—building an LSP that makes receiving and transacting RGB assets on Lightning more accessible, predictable, and practical.
Make Bitcoin smart.