Bitcoin has been limited in scalability and programmability, hindering its use for high-frequency payments and smart contracts. However, the Lightning Network, launched in 2018, has improved scalability by creating side channels between sender and receiver, making transactions faster and cheaper. Secondary protocols like RGB have brought programmability to Bitcoin, allowing for smart contracts and digital assets. RGB powers decentralized applications and tokenization, enabling assets other than Bitcoin to exist on the blockchain.

CTDG Dev Hub has added Utexo as a participant, aiming to represent stablecoin transfers natively on Bitcoin by combining Lightning Network’s payment channels with RGB’s asset model. This eliminates the need for wrapping and bridging methods, reducing security risks. Utexo’s design separates execution from base-layer congestion, ensuring stable cost behavior as throughput grows.

Utilizing the Lightning Network and RGB typically requires manual labor, but Utexo simplifies the process by integrating Lightning execution and RGB asset issuance into a single flow accessible via an SDK and REST API. This allows developers to interact with both layers through one interface, streamlining the user experience.

As part of CTDG Dev Hub, Utexo joins a shared development environment where its approach can be reviewed and discussed by other contributors. The hub serves as a coordination point for developers and community members exploring infrastructure and tooling for Bitcoin-based applications.

Read more at Cointelegraph: Bitcoin-native USDT protocol joins CTDG Dev Hub