Recently, with the victory of the US election, $BTC has continued to hit new highs, and funds have begun to flow back to mainstream currencies. Large institutions have also begun to build positions and join. Will the Bitcoin ecosystem accelerate its development? Let's discuss how CKB L2 promotes the development of the Bitcoin ecosystem~ Lets Go~
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1. What is Nervous CKB?
The CKB mainnet was launched in November 2019. It is a public chain based on the PoW + UTXO model, which is completely isomorphic to BTC. It aims to provide cross-chain interoperability and scalability support for the Bitcoin ecosystem, and promote the Bitcoin ecosystem through protocols and ecological products.
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2. How do CKB ecosystem products help the development of the ecosystem?
📍RGB++
The key technology of RGB++ is called "isomorphic binding". Through the RGB++ protocol, stablecoins can be issued on the Bitcoin blockchain and circulated to off-chain payment systems such as the Fiber Network and the Lightning Network. Turing-complete smart contracts can also provide stablecoins with advanced features such as payment conditions and time locks.
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📍Fibre Network
Fiber Network is a lightning network implemented on the Nervos CKB chain. It can be closely integrated with Bitcoin's lightning network to form a larger and more robust hybrid network. The main function of this hybrid network is to introduce stablecoins into the lightning network. For example, stablecoin assets based on the RGB++ protocol can be issued on the Bitcoin chain and then transferred to the CKB chain through a bridgeless cross-chain method.
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📍LocationID
JoyID combines the Lightning Network (off-chain channels) to create BTCFi, a payment method that settles within seconds, providing users with real-time finality! Compared with traditional Web2, it has cheaper fees, smoother throughput, and most importantly, complies with regulatory frameworks. This will help the application prospects of BTCFi in the ecosystem, such as in scenarios such as small payments and cross-border remittances.
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Conclusion
JoyID, Fiber Network, and RGB++ complement each other on the Nervos network and together form the cornerstone of CKB's promotion of the BTCFi ecosystem. JoyID provides a secure and decentralized identity and account management layer, lowering the user's usage threshold; Fiber Network enables cross-chain circulation of assets and data, bringing liquidity support to BTCFi; RGB++ gives Bitcoin assets smart contract functions, allowing it to carry more financial application scenarios. The synergy of the three makes CKB not only a basic public chain, but also an important support platform for BTCFi.
