Guide3 min read

Bitcoin RGB: wallets, transfers and backups

RGB is a system for defining and transferring assets with client-side validation and commitments anchored in Bitcoin. This community guide explains the concepts and a test-transfer checklist. It is independent of any particular wallet interface and does not assume that RGB is enabled in your Medusa Custody™ workspace.

Bitcoin balance and RGB balance are different

A Bitcoin wallet tracks bitcoin controlled by its keys. An RGB-aware wallet also keeps contract information and validates asset state. An asset name or ticker is not a unique identity: compare the contract ID with the source you intended to use. Holding bitcoin at an address does not by itself mean that you hold an RGB asset.

Why client-side validation matters

Participants validate the relevant contract data themselves. Bitcoin supplies commitments and transaction ordering; it does not publish all of the private contract data needed by an RGB receiver. A Bitcoin explorer can show a transaction and its confirmations, but that view alone does not establish that an RGB transfer was valid or received.

Prepare a test transfer

Use two compatible RGB wallets with support for the same protocol version, asset schema and Bitcoin network. Start in a supported test environment. Check each wallet's own documentation for its current backup, invoice and transfer steps rather than assuming that menu names or command-line examples are interchangeable.

1. Create the receiver's request

In the receiving wallet, select the intended asset and create an RGB receive request or invoice. Check the contract identifier, amount when specified, network and any expiry. Share the exact request with the sender. A plain Bitcoin address is not a substitute for the RGB request expected by that wallet.

2. Review and send

The sender reviews the request, asset quantity and Bitcoin transaction fee. The transfer also conveys client-side data, commonly called a consignment, to the receiver. Depending on the wallet, delivery may use a transport service or another supported mechanism. Follow the wallet's flow for validation, acknowledgement and broadcast.

3. Verify receipt on both sides

Check the receiver's validated RGB balance and transfer status as well as the Bitcoin confirmation status. If the transaction is confirmed but the asset is missing, examine data delivery and validation errors before sending again. Record the contract ID and transfer reference so the two parties can compare the same operation.

Back up the asset data as well as the keys

Do not assume a Bitcoin recovery phrase can reconstruct every RGB holding. Contract state and transfer data are not all recoverable from Bitcoin alone. Follow the RGB wallet's backup procedure and preserve its required data alongside protected key recovery material. Test restoration in a separate environment before relying on it.

Using RGB with Medusa Custody™

A Medusa Custody™ signing device approves governed requests; it is not an RGB wallet. RGB issuance or transfer requires the appropriate workspace capability and runtime. When those operations are available, review their contract, amount and network and follow the configured approval policy. Device pairing alone does not enable them.