Rainbow Protocol, A programmable meta-protocol on BTC and IC

Quick Intro

  • Bitcoin Native Assets, secured by BTC
  • Smart contracts enabled Virtual Machine
  • Assets Teleport: No Bridge, No Multi-sig
  • Smart Contracts enabling Defi and Web3 applications on BTC

Overview

Rainbow Protocol is an innovative overlay protocol designed to bring programmability to the Bitcoin ecosystem. By adding an interoperability layer on top of Bitcoin, Rainbow Protocol extends Bitcoin’s core functionalities, allowing developers to create and execute complex smart contracts and decentralized applications (dApps) on the Bitcoin network. This protocol retains Bitcoin’s advantages as the world’s most secure and widely adopted blockchain network while introducing flexibility and scalability to support a wider range of use cases.

Rainbow Protocol is inspired by other Bitcoin overlay protocols such as Atomicals, Runes, BRC20, RGB++, etc. It has learned from the strengths and weaknesses of these different protocols to design a protocol that minimizes user understanding and usage barriers, establishing standards for asset issuance and smart contract programming. Through these improvements, Rainbow Protocol facilitates Bitcoin’s evolution from a digital currency to a versatile decentralized platform.

Currently, Rainbow Protocol is in the experimental stage, focusing on the programmability of fungible tokens.

Vision

In today’s landscape, investing in cryptocurrencies has become increasingly complex. Bitcoin steadfastly holds its position as a store of value and digital gold. Altering Bitcoin’s culture is challenging, and activating Bitcoin Improvement Proposals (BIPs) is even more so. As a result, individuals often seek opportunities in altcoins, only to face disappointment. Venture capital-backed teams and chains frequently entice investors with ambiguous and meaningless technical jargon, leading to disillusionment. Users engage with purported Layer 2 bridges and chase airdrops, only to witness the inevitable dump following a short-term pump.
There exists a need for a superior and cost-effective approach to liberate us from these deceptions. You deserve the autonomy to deploy and issue coins on the most secure and widely adopted blockchain, coupled with a fee-based solution for sending and storing your assets.

Why Rainbow

Numerous protocols are built atop Bitcoin, each in varying ways. Rainbow distinguishes itself as an essential and unique protocol due to the following characteristics:

  • Isomorphic States and No Bridge: Rainbow is conceived as an overlay protocol, ensuring it does not alter Bitcoin’s fundamental operations. We integrate and compute the Bitcoin state within Rainbow’s execution environment, thereby eliminating the reliance on Multi-Sig bridges.
  • Programmable: Rainbow assets are implemented as Turing-complete smart contracts, autonomously deployed and decentralized. Developers are empowered to write smart contracts using high-level programming languages, facilitating greater innovation and utility.
  • Permissionless and Fair: The deployment of Rainbow assets is accessible to anyone through the simple act of sending a Bitcoin transaction. Parameters can be configured to define unique tokenomics, including hard caps, inflation rates, and fair launch mechanisms.
  • Blazing Fast Execution: Rainbow’s Virtual Machine (VM) operates atop the Internet Computer (IC), delivering high performance and scalable solutions for smart contracts. Current transaction speeds are observed to be less than 2 seconds, ensuring swift and efficient execution.

Benefits for Internet Computer

  • First Dual-Native (Bitcoin and IC) Metaprotocol
  • Bringing massive BTC TVL and Users to IC by leveraging:
    • Bitcoin Identity Generation (Sign-in With Bitcoin)
    • Bitcoin Lock-script and staking mechanism on IC
    • ICRC-compatible and predefined ledger of IC
    • On-chain PSBT marketplace
  • Embracing Chain-Fusion narratives and applications
    • Bringing/bridging ICRC-tokens back to BTC markets
    • Introducing/bridging all metaprotocols from BTC/other chains

System Architecture:

RBO Tokens

Roadmaps

  • Full documents and specs: end of July, 2024
  • RBO Testnet (Bitcoin Testnet 4 and IC Mainnet): Early August, 2024
  • RBO Mainnet (Bitcoin Mainnet and IC Mainnet): Early Sep 2024
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