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RGB Protocol

A digital asset created using the RGB protocol. RGB assets are client-validated smart contracts that leverage Bitcoin’s security while maintaining scalability and privacy through off-chain validation.
Non-Inflatable Asset — the RGB interface for fixed-supply fungible tokens, similar to ERC-20 on Ethereum. Used for creating and managing divisible assets like stablecoins or utility tokens. This is the asset type KaleidoSwap trades today.
Inflatable Fungible Asset — the RGB interface for fungible tokens whose supply can be expanded or replaced by the issuer (mint/burn). Not currently supported by KaleidoSwap.
Unique Digital Asset — the RGB interface for non-fungible tokens (NFTs), comparable to ERC-721. Used for unique digital assets and collectibles. Not currently supported by KaleidoSwap.
Collectible Fungible Asset — the RGB interface for collectibles with rich media and metadata. Not currently supported by KaleidoSwap.
A unique identifier for an RGB asset, typically in the format rgb:xxxxxx-xxxxxx-xxxxxx. Each asset has a globally unique ID derived from its genesis transaction.
A core RGB concept where asset state and transaction history are validated by clients rather than being stored on the blockchain. This provides enhanced privacy and scalability.
A data package containing all necessary information to validate an RGB asset transfer, including proofs, history, and state transitions.
The blueprint defining an RGB asset’s properties, state transitions, and validation rules. Different interfaces (NIA, IFA, UDA, CFA — formerly RGB20/21/25) enable different asset types.

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Lightning Network

A Layer 2 payment protocol built on Bitcoin enabling instant, low-cost transactions through off-chain payment channels.
A bidirectional payment channel between two Lightning nodes allowing multiple transactions without touching the blockchain until the channel is closed.
The total amount of Bitcoin (and potentially RGB assets) locked in a payment channel, determining the maximum transaction size.
The amount of funds others can send to you through a channel. Determined by your channel partner’s balance.
The amount of funds you can send through a channel. Determined by your balance in the channel.
The standard Lightning Network invoice format for requesting payments. Contains payment amount, recipient, and other metadata.
A Lightning payment method allowing spontaneous payments without requiring an invoice, used for pushing assets or funds.
A conditional payment mechanism ensuring atomic transactions across Lightning channels using cryptographic hashes and time locks.
The process of finding a path through the Lightning Network to deliver a payment from sender to receiver.

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LSP (Lightning Service Provider)

A service provider that offers Lightning infrastructure, liquidity, and channel management services to users.
A set of standardized protocols for Lightning Service Providers, defining how they interact with clients.
The first LSP specification defining channel opening and liquidity services. KaleidoSwap implements LSPS1 for RGB-enabled channels.
A request from a client to an LSP to open a Lightning channel with specific parameters like capacity and asset allocation.
Just-In-Time channel opening where an LSP opens a channel on-demand when a user receives a payment, providing instant onboarding.

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KaleidoSwap Specific

A Lightning Service Provider that supports RGB assets in payment channels, enabling instant RGB asset transfers over Lightning.
A trustless exchange of one asset for another that either completes entirely or fails entirely, with no possibility of partial execution.
An order to exchange one asset for another at a specified price, which can be settled on-chain or via Lightning.
A request to get a price quote for swapping between two assets. Quotes are valid for a limited time.
A compact string encoding all parameters of a swap transaction, used for coordinating atomic swaps between parties.
The method used to finalize an asset transfer - either LIGHTNING (instant via payment channels) or ONCHAIN (via Bitcoin transactions).
The process of transferring RGB assets through Lightning channels using keysend after a channel is opened.
When market rates change significantly during order processing, users can choose to accept the new rate or request a refund.

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Bitcoin & On-Chain

The smallest unit of Bitcoin, equal to 0.00000001 BTC. All amounts in KaleidoSwap are denominated in satoshis.
One-thousandth of a satoshi, used for precise calculations in Lightning Network payments (not enforceable on-chain).
A discrete chunk of Bitcoin that can be spent. RGB assets are anchored to specific UTXOs on the Bitcoin blockchain.
When a Bitcoin transaction is included in a block on the blockchain. More confirmations mean higher security against reorganization.
The pool of unconfirmed Bitcoin transactions waiting to be included in the next block.
The cost per byte to include a transaction in a Bitcoin block, typically measured in satoshis per virtual byte (sat/vB).
A separate Bitcoin network used for testing, where coins have no real value.
A newer test network with more predictable block times, used for development and testing.
Regression test mode allowing developers to create local private Bitcoin networks for testing.

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Wallet & Security

A 12 or 24-word phrase that can restore your entire wallet. Must be kept secure and private.
The public portion of a cryptographic key pair, safe to share. Used to receive payments and verify signatures.
The secret portion of a cryptographic key pair, never to be shared. Used to sign transactions and prove ownership.
A scheme for generating multiple keys from a single mnemonic seed in a deterministic way.
A wallet that can view balances and transactions but cannot sign or send transactions.
A backup file containing essential data to recover Lightning channel funds in case of data loss.

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Trading & Market

A combination of two assets that can be traded against each other, e.g., BTC/USDT.
The first asset in a trading pair - what you’re buying or selling.
The second asset in a trading pair - what you’re paying with or receiving.
The number of decimal places an asset supports. For example, USDT typically has 6 decimals of precision.
The party providing liquidity by creating a swap offer that others can accept.
The party consuming liquidity by accepting an existing swap offer.
The difference between expected price and actual execution price, typically due to market movement or liquidity constraints.
The current state of a swap order: OPEN, PENDING_PAYMENT, PAID, EXECUTING, FILLED, CANCELLED, EXPIRED, or FAILED.
This glossary is continuously updated. If you encounter unfamiliar terms not listed here, please let us know via our support channels.