RGB Protocol and Taro Protocol are ways to enhance self-custody within the Bitcoin ecosystem. RGB takes a unique approach, building a smart contract system on top of the Lightning Network. This enables you to create and transfer various assets via Lightning channels without sacrificing full ownership control. Your wallet software enforces ownership rules locally, preventing fraud even though Lightning nodes facilitate the actual movement of assets. Taro, on the other hand, leverages the Taproot upgrade to "commit" assets onto the Bitcoin blockchain. Through advanced scripting techniques, assets become governed by rules you define, ensuring no one but you can authorize movements. Both protocols promote self-custody by minimizing reliance on trusted third parties.
This has nothing to do with self custodial bitcoin.
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