RIF Launches 'Layer 3' Network to Scale Bitcoin-Based Smart Contracts, Tokens

RIF Labs, which developed the RSK Network for ethereum-like tokens and smart contracts on top of bitcoin's blockchain, has launched a "Third-layer solution" to help scale this technology.

After more than a year in the works, the Lumino project is now officially live, RIF said Tuesday.

While that may pale in comparison to the 65,000 tps the Visa network is capable of processing, it's still an improvement over bitcoin's transaction throughput, which rarely cracks two digits.

Conceptually, Lumino is similar to bitcoin's lightning network, in that it allows parties to transact off-chain, in so-called state channels, until one party decides to record their balance on the blockchain for final settlement.

In addition to bitcoin, Lumino can also scale transaction volume for the tokens running on the RSK Network, RIF said.

That network, launched in early 2018, is itself a so-called sidechain, or ledger that runs in parallel to the main bitcoin blockchain.

This allows for complex things like smart-contract creation and token issuance to occur on the sidechain without burdening the bitcoin network.

"While the RSK Network added smart contract capabilities and on-chain scaling improvements on top of the bitcoin network, it is not enough to achieve transaction processing levels on par with those offered by major payment processors around the world," RIF said in a press release Tuesday.

By contrast, Lumino offers "Near-instant processing capabilities and network transaction costs at a fraction of a cent," RIF claimed.

Still, Sergio Lerner, head of research and innovation at RIF Labs, was careful to describe the new network as only "The first step towards a scalable network infrastructure."