IOV Labs Explains New Off-Chain Bitcoin-Based Payment Channel

Bitcoin blockchain solution startup, IOV Labs, recently introduced the RIF Lumino Light Client.

The new offering “will allow to any DApp or mobile application to take the great advantages of the RIF Lumino Network,” an IOV Labs representative told Cointelegraph in an email. 

But what is the RIF Lumino Network?

A second layer payment network on Bitcoin’s blockchain  

IOV Labs manages Rootstock, or RSK, a sidechain on Bitcoin’s blockchain, which allows smart contract capabilities on the network. IOV Labs calls RSK a second layer solution on top of Bitcoin’s blockchain, which is layer one, the representative clarified.

IOV Labs’ May 13 announcement saw the RIF Lumino Light Client unveiled, letting integrators build blockchain-based solutions without complete blockchain node operation, IOV Labs detailed in a statement provided to Cointelegraph.  

“RIF Lumino Network is the first off-chain payments solution on top of RSK,” the representative said. “You can create an off-chain payment channel in any ERC20 compliant token deployed on top of RSK,” 

IOV Labs also manages a third layer solution on Bitcoin’s network, called RIF. 

The Lumino Network improves scaling 

IOV Labs’ RIF Lumino Network aims for several goal posts in terms of improvement, when compared with Bitcoin’s main chain. The new solution looks to cut down on fees while facilitating thousands of transaction-per-second, or TPS, the representative noted. 

The RIF Lumino Network also shoots for “near real time confirmation times,” while making “Lumino interoperable with other networks, including Lightning, in the near future — all without losing security,” the representative added. 

Scaling has been a hot topic over the past few years as the Lightning Network, another layer two Bitcoin solution, aims to improve on Bitcoin’s sluggish network TPS numbers.