RTHB — Thai Baht Stable Coin in the 1st RSK Hackathon in Bangkok

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KULAPofficial

4 min readDec 13, 2018

Our team at Kulap won the first runner-up in the 1st RSK Hackathon in Bangkok which was held at the Knowledge Exchange Center. Most of the teams participated in the event came from abroad countries. There were only two teams from Thailand, one is ours.

Understanding Stable Coin

USDT is one of the well-known stable coin. The way it works is that they claim that every USDT have the real USD (or related with) backed in their bank account (i.e., fiat money). With the USDT, however, it is hard to prove and verify that the rate ratio is always 1:1.

Recently, the project called MakerDAO has come. They aim to create the pure USD stable coin on a smart contract called DAI with the so-called Crypto-Asset-Backed mechanism. The project is just 1 year old but gain popularity among decentralized exchanges as the main token.

The DAI system provides more transparency as everyone can look up at Ethereum Blockchain to see all activities such as issuing, repaying, list of all contracts, collateral ratio and etc.

What is RTHB — ThaiBahtCoin?

We believe that the crypto-asset-backed stable coin is the future. If we organize it in the right way, it will unlock much more financial services and bring trust to the crypto ecosystem, resulting in the mass adoption.

Introduce RTHB, is a proof of concept for securely issuing Thai Baht Stable Coin which is backed by Bitcoin (BTC). Anyone can issue RTHB by lock up their BTC. In this case we use RBTC (Native BTC on RSK Blockchain Network) to back RTHB with the ratio 1.5:1.

We believe that BTC has potential to be the new gold standard, and RTHB that backed by BTC could be a strong stable coin.

How RTHB Works?

Alice sends 1 RBTC at a rate 1,500 THB/BTC to RTHB Smart Contract (calling issue()).
Alice receives 1,000 RTHB back (at 1.5:1 ratio).

Now Alice can freely transfer any amount of RTHBs to anyone. This’s the real usage of this protocol.

3. Alice decides to return 1,000 RTHB to get her own RBTC back (calling claim()).

4. Fortunately the rate is still the same as when the RBTC was deposited, so the RTHB Smart Contract would return 1 RBTC back to Alice.

More scenarios are available here: https://github.com/kulapio/RTHB-ThaiBahtCoin#example-scenarios-of-rthb

RTHB Use Case

To prove the concept of RTHB adoptions, we developed the IoT-featured device called Candoreum which is a candy machine connected to RSK blockchain network to accept the proposed RTHB.

That is, users can buy some candy from the machine by simply scanning QR-Code to sending 10 RTHB to Candoreum address and wait for seconds to get their candy.

There’re many more use cases, for example, buy a cup of coffee at coffee shop, buy movie ticket, loan, and so on.

Conclusion

RTHB (Thai Baht Stable Coin) is just one use case of smart contracts on the blockchain. There are also many awesome projects out there. We hope this project would inspire you to create some exciting projects to bring the world to the Decentralized era.