RGB HUB Community Call: Exploring Bitmask, DIBA, and UDAs on RGB.

This article covers the main topics discussed in the RGB Hub Community Call featuring Gideon, founder of DIBA and Bitmask. For the full discussion including the live demo, watch the video below.

Note: This talk was recorded before the RGB Protocol on Bitcoin mainnet launch (July 2025). Some details reflect the state of development at the time.

Bitmask is a Bitcoin wallet built by DIBA, focused on smart contracts on Bitcoin using RGB Protocol. DIBA has been one of the earliest teams building on RGB, with a particular focus on non-fungible assets, what they call Unique Digital Assets (UDAs).

What Are Unique Digital Assets (UDAs)?

Unique Digital Assets are non-fungible assets issued on RGB Protocol on Bitcoin: the equivalent of NFTs, but native to Bitcoin and the Lightning Network, using client-side validation instead of a public blockchain ledger.

Unlike NFTs on other chains, UDAs:

• Are anchored to Bitcoin UTXOs via cryptographic commitments
• Keep all asset data private and off-chain (only the parties involved can see the full history)
• Can include any kind of media file, regardless of size
• Can be transferred and traded atomically over the Lightning Network

How Does Minting a UDA Work?

Minting a UDA on Bitmask is free, no Bitcoin transaction fee is required at mint time. A fee only occurs when a Bitcoin transaction is made (for example, when transferring the asset on-chain or settling an atomic swap). Gideon walked through the four steps of the UDA contract:

1. Contract setup — genesis seal
The first step prepares the genesis seal: the cryptographic anchor that ties the asset to a Bitcoin UTXO. This part is the single-use seal primitive, meaning the mechanism that ensures each asset state can only be assigned to one owner at a time.

2. Media processing
RGB Protocol on Bitcoin allows any media file, regardless of format or size, to be attached to a smart contract and anchored to Bitcoin. At this step, the media is processed and a preview image is generated. The asset data itself stays off-chain; only a commitment goes on the blockchain.

3. Token allocation
UDAs are one-of-one assets. The contract sets the supply to exactly one, making the asset unique by definition. DIBA is also exploring fractionalized ownership contracts, where multiple parties can hold fractional stakes in a single one-of-one asset.

4. Issuance — anchoring to a UTXO
The asset is issued and anchored to a Bitcoin UTXO entirely on the user’s device. This action is client-side validation in practice, where the issuance happens locally, with a cryptographic commitment going to the blockchain. No information about the asset is publicly visible on-chain.

The DIBA Marketplace and Atomic Swaps

DIBA operates a marketplace where UDAs can be listed and traded via atomic swaps. A buyer and seller exchange assets without a trusted intermediary: the swap either completes in full or nothing happens.

The process:

1. The seller mints a UDA and lists it at a fixed price
2. The seller pre-signs a PSBT (Partially Signed Bitcoin Transaction)
3. The buyer completes the signing, and the swap executes; the UDA transfers to the buyer, BTC transfers to the seller
4. The completed transaction is visible on Bitcoin’s mempool

One-Click Atomic Mint

One-click atomic mint combines minting and an atomic swap in a single action, addressing a limitation of pure client-side minting.

Because UDA minting is client-side, there is no immediate Bitcoin blockchain footprint — the asset exists on the user’s device, but there is no on-chain proof that it exists at the moment of minting. This could create ambiguity in collection launches.

One-click atomic mint solves this: by pairing the mint with an atomic swap, the asset is immediately anchored to Bitcoin’s blockchain as part of a completed transaction. The asset becomes part of the Bitcoin block history from the moment it is created.

This mechanism is particularly useful for collection launches, where creators want to distribute assets to buyers at a set price in a single action.

Why UDAs on Bitcoin Matter

As Gideon described in the talk, the combination of RGB Protocol on Bitcoin with Lightning creates a unique asset category:

• Free to mint — no cost until a Bitcoin transaction occurs
• Private — asset history is visible only to the parties involved
• Atomic — trades either complete or fail, with no intermediate state
• Bitcoin-native — no sidechain, no bridge, no trusted third party

To explore Bitmask and the DIBA marketplace, visit bitmask.app.

RGB Protocol on Bitcoin is supported by the RGB Protocol Association. Learn more at rgbprotocol.com and docs.rgb.info.