1. Introduction
With the development of the blockchain industry, the Bitcoin ecosystem faces challenges and opportunities in scalability, programmability, and decentralized applications. Nervos CKB, as an innovative public chain, brings new development ideas and technical support to the Bitcoin ecosystem. This research report will focus on the core technologies of Nervos CKB, including JoyID, Fiber Network, and RGB++, analyzing their roles in promoting the development of the Bitcoin ecosystem and BTCFi, and exploring the current status and future trends of decentralized Bitcoin ecosystems, programmability expansion, and Lightning Network applications.
2. Overview of Nervos CKB
(1) Technical Foundation
Nervos CKB is based on a PoW + UTXO model, fully isomorphic to BTC, providing it with inherent compatibility for applications in the Bitcoin ecosystem. Its mainnet was launched in November 2019, and it completed its first mining output halving in November 2023, demonstrating a stable development trend.
(2) Core Components
1. Cell Model
The CKB Cell model is an improvement over the Bitcoin UTXO accounting model, allowing for more flexible data storage and verification. Through the dual-script (Lock Script and Type Script) mechanism, it can support more functions, with each Cell capable of storing different types of data such as tokens, smart contracts, and application states, and can operate independently, enhancing scalability.
2. CKB - VM
CKB - VM is the execution engine of $CKB, using the RISC - V instruction set, compatible with multiple programming languages including C, Rust, etc. It features predictable gas fees, secure execution, and efficient integration with the Cell model, providing convenience for developers to create complex decentralized applications.
3. Core Technology Analysis
(1) JoyID
1. Technical Features and Application Scenarios
JoyID, as the first Passkey wallet to support the Lightning Network, utilizes biometric technology to provide identity verification services for users. It supports multiple networks including Ethereum, Bitcoin, and RGB++ assets, enhancing users' control over their identities and assets within the decentralized Bitcoin ecosystem and improving the convenience of cross-network interactions. For example, users can transfer Bitcoin and Ethereum assets without complex conversion processes.
2. Impact on Lightning Network Applications
In Lightning Network applications, JoyID's fast identity verification feature can significantly improve transaction speed. Especially in scenarios involving micropayments and cross-border remittances, users can quickly complete payment authorization through biometrics, achieving nearly instant transaction confirmation and optimizing user experience.
(2) Fiber Network
1. Technical Architecture and Functions
Fiber Network is a cross-chain network that enhances the liquidity and scalability of the BTCFi ecosystem, enabling seamless circulation of multiple assets between different blockchains, thereby enhancing the stability and usability of the decentralized financial network.
2. Role in the Bitcoin Ecosystem
In the Bitcoin ecosystem, Fiber Network addresses the key issue of cross-chain asset circulation, expanding the liquidity of Bitcoin assets, allowing interaction with more types of assets, and enriching application scenarios. At the same time, its decentralized design avoids the centralization risks of traditional cross-chain solutions, aligning with the core values of Bitcoin and reinforcing the foundation of a decentralized Bitcoin ecosystem.
3. Potential for Programmability Expansion
Fiber Network provides vast space for programmability expansion, supporting the development of more complex smart contracts and cross-chain applications. Developers can leverage its cross-chain capabilities to combine functionalities and assets from different blockchains, creating diverse applications such as cross-chain financial products and cross-chain games.
(3) RGB++
1. Protocol Principles and Innovations
RGB++ is an asset issuance protocol based on the original RGB protocol, using CKB as the data availability and execution layer for Bitcoin. Through isomorphic binding technology, it maps Bitcoin UTXO to CKB's Cell, achieving seamless integration with CKB's Turing-complete smart contracts. This not only enables cross-chain without bridges for Bitcoin assets but also introduces on-chain verification of key transaction elements, enhancing security and data availability.
2. Value for the Decentralized Bitcoin Ecosystem
In the decentralized Bitcoin ecosystem, RGB++ enriches the asset issuance model of Bitcoin, allowing project parties to issue more types of assets without changing the Bitcoin mainnet, meeting various needs. For example, the Initial Bitcoin Offering (IBO) model has brought more financial products to BTCFi, attracting more users. At the same time, RGB++ enhances the interoperability between the Bitcoin ecosystem and other blockchain ecosystems, breaking down asset and functionality barriers and promoting collaborative development.
3. Role in Lightning Network Applications and Programmability Expansion
Combined with the Lightning Network, RGB++ can enable more complex Lightning Network applications, such as using issued assets for payments, increasing payment flexibility and diversity, and adding more conditions and logic to transactions through smart contracts to enhance transaction security and efficiency. As a key technology for programmability expansion, RGB++ provides Bitcoin developers with more tools to create more complex smart contracts, transforming Bitcoin into a programmable platform with rich application scenarios.
4. Current Status of Bitcoin Ecosystem Development
(1) Decentralized Bitcoin Ecosystem
With the application of Nervos CKB's core technologies, the decentralized Bitcoin ecosystem is deepening its development. Users participate in Bitcoin transactions and applications in a more secure and convenient environment, and the collaboration among various roles within the ecosystem is becoming closer. However, there are still challenges, such as the need for some users to improve their acceptance of new technologies and the compatibility issues between different projects that need to be further addressed.
(2) Programmability Expansion
Programmability expansion is driving application innovation in finance, social media, gaming, and other fields based on Bitcoin. More and more decentralized applications based on Bitcoin are emerging, utilizing technologies like RGB++ to achieve automated trading, asset management, and other functionalities. However, the level of development tools and multi-party interaction solutions still needs improvement to better support complex decentralized applications.
(3) Lightning Network Applications
The advantages of the Lightning Network in scenarios such as micropayments and cross-border remittances are gradually becoming apparent. Combined with technologies like JoyID and RGB++, its application scope is continuously expanding. However, the current number and capacity of Lightning Network nodes are limited, necessitating further infrastructure development to meet the demand for large-scale applications globally.
5. Future Outlook for BTCFi
(1) Technological Integration and Innovation
It is expected that in the future, the core technologies of Nervos CKB will further integrate and innovate. The synergy of JoyID, Fiber Network, and RGB++ will continuously enhance, bringing more features and application scenarios to BTCFi. For example, cross-chain transactions will become more convenient and secure, and Lightning Network applications will become richer and more efficient.
(2) Market Development and Application Expansion
As the Bitcoin ecosystem develops, BTCFi is expected to expand its market share. More financial institutions and users may participate in BTCFi-related businesses, such as decentralized financial services and Bitcoin payments. At the same time, emerging fields such as the Internet of Things and artificial intelligence combined with BTCFi will also bring new development opportunities.
(3) Challenges and Responses
In the development process, BTCFi will still face challenges in terms of technical security, regulatory policies, and more. It is necessary to strengthen technological research and development, improve network security and stability, and actively cooperate with regulatory authorities to ensure compliant development.
6. Conclusion
The core technologies of Nervos CKB, JoyID, Fiber Network, and RGB++ play an important role in advancing the development of the Bitcoin ecosystem and BTCFi. They bring new opportunities and development directions for decentralized Bitcoin ecosystems, programmability expansion, and Lightning Network applications. Despite facing some challenges, with continuous technological advancements and gradual market maturity, BTCFi is expected to achieve broader applications and development in the future, bringing new vitality and value to the blockchain industry. Investors and developers should closely monitor the development dynamics of Nervos CKB to seize investment and innovation opportunities.
