The deep integration of the two in asset issuance, circulation, payment and ecological applications has brought unprecedented market imagination to the Bitcoin ecosystem.
Written by Alex Liu, Foresight News
As the price of Bitcoin (BTC) exceeded $90,000 this year and once hit $100,000, market enthusiasm continued to rise. Bitcoin is no longer just a synonym for digital gold, it is becoming an important engine driving blockchain technology innovation and industrial ecological expansion. In this context, the expansion, asset issuance and ecological construction of Bitcoin have become industry hotspots. Among them, the CKB project and its RGB++ protocol and the upcoming Fiber network have played a key role in promoting the Bitcoin ecosystem (BTCFi) to a new stage. This article will explore how RGB++ and Fiber can release a new round of development dividends for BTCFi from multiple perspectives such as technology, market potential and industry impact.
The “Spillover Effect” of Bitcoin Ecosystem and the Rise of BTCFi
In the history of Bitcoin ecosystem expansion, asset issuance has always been a challenging proposition. Bitcoin's infrastructure, due to its non-Turing complete design, naturally lacks support for smart contracts. This limitation has caused many innovative asset protocols to face bottlenecks with limited functionality. However, as Bitcoin prices have repeatedly hit new highs, the market demand for Bitcoin assets and Bitcoin finance has gradually emerged, which has also formed a broad "spillover effect."
The enlightenment of the inscription craze and the demand for asset issuance
In early 2023, the rise of Bitcoin Ordinals demonstrated the strong market demand for on-chain asset issuance. The Ordinals protocol allows users to permanently record data in the Bitcoin blockchain, triggering a boom in the issuance of artworks, NFTs, and some assets. However, the Ordinals protocol can only store data and cannot meet the needs of more complex asset functions. For example, although the BRC20 protocol attempts to imitate Ethereum's ERC20, its tokens lack transfer and minting functions, making it difficult to adapt to mainstream asset issuance scenarios.
In contrast, the RGB++ protocol has become a highly anticipated solution in the market due to its design that combines Bitcoin nativeness and flexibility. By introducing isomorphic binding and Leap bridgeless cross-chain technology, RGB++ gives Bitcoin assets native cross-chain and flexible operation capabilities, laying the foundation for the further development of the BTCFi ecosystem.
RGB++: Redefining Bitcoin Asset Issuance
The core innovation of RGB++ lies in that it breaks through the limitations of the traditional RGB protocol, not only solving the pain points of Bitcoin asset programmability, but also greatly improving the issuance efficiency and liquidity of assets.
Isomorphic Binding: The Convenience of Native Assets
The traditional RGB protocol uses off-chain verification, which requires users to run the client to operate assets, which easily forms data islands and limits the application of the protocol in the field of decentralized finance (DeFi). The isomorphic binding function of RGB++ allows users to directly use Bitcoin accounts to manage and operate assets, simplifying the interaction process while ensuring data transparency and interoperability.
Leap Technology: A Bridgeless Cross-Chain Breakthrough
Leap technology is another core function of RGB++. It realizes the seamless flow of assets between the L1 Bitcoin main chain and the L2 CKB blockchain by deeply integrating assets with the Bitcoin UTXO (unspent transaction output) model. This bridgeless cross-chain method not only reduces the technical complexity of cross-chain assets, but also greatly reduces the related transaction costs and risks.
RGB++'s technical architecture provides a new paradigm for the issuance and circulation of assets in the Bitcoin ecosystem. Its flexibility and efficiency have been verified by the market and have received attention and support from multiple Bitcoin core players.
Fiber: The spark that ignites the BTCFi market
The Fiber network is the next-generation public lightning network launched by the CKB team to meet the payment needs of the Bitcoin ecosystem. It can provide fast, low-cost and decentralized multi-currency payments and peer-to-peer transactions for RGB++ assets. The Fiber network, which is expected to be launched in mid-December, not only carries the high-speed payment needs of Bitcoin assets, but also provides key infrastructure for the implementation of decentralized applications.
High-performance payment network
The Fiber network introduces a more efficient off-chain channel, supports multi-currency payments and point-to-point transactions, and can significantly improve the transaction throughput and cost efficiency of RGB++ assets. This feature provides strong support for DeFi applications and NFT (in RGB++, called DOB) transactions in the Bitcoin ecosystem, allowing RGB++ protocol assets to achieve rapid circulation in the Fiber network.
Decentralization and Scalability
Unlike traditional on-chain expansion solutions, the Fiber network adopts a decentralized architecture design, and its scalability can meet the growing transaction needs in the future. In addition, Fiber is also compatible with Bitcoin's Lightning Network, which enables RGB++ assets to be integrated into Bitcoin's existing payment ecosystem, further expanding its application scenarios.
CKB’s Advantages in the Global Competition
In the global competition of BTCFi, the Eastern and Western solutions each have their own advantages, but they also have obvious shortcomings:
Eastern solutions such as Runes and Ordinals are innovating rapidly, but the supporting infrastructure and ecosystem are inadequate.
Although RGB and Taproot started earlier in the West, their development speed was relatively slow and they lacked effective marketization.
In contrast, CKB has demonstrated comprehensive competitive advantages in terms of technology, ecology, and market implementation:
Technological leadership: The RGB++ protocol fills the gap in the Bitcoin ecosystem in cross-chain asset issuance through innovative technologies such as Leap and isomorphic binding. Its technological advantages give it the potential to integrate the Bitcoin ecosystem.
Ecological perfection: The launch of the Fiber network provides solid infrastructure support for RGB++, while application protocols such as the compliant stablecoin USDI, decentralized over-collateralized stablecoin RUSD, DEX UTXO Swap, and liquidity pledge management UTXO Stack further enrich the functional modules within the ecosystem.
Market recognition: The CKB project has been deeply involved in the Bitcoin ecosystem for a long time and has received investments from top global institutions including CMB International, Sequoia China, and Polychain Capital, as well as support from well-known miners such as Bitmain and Broadeng. Mainstream mining pools such as F2Pool and Binance Pool have already supported CKB mining.
BTCFi’s Blue Ocean: Market Potential and Wealth Effect
The positive feedback mechanism of Bitcoin ecology
The rapid rise in Bitcoin prices has brought a large number of new users, who have placed higher demands on assets and services within the ecosystem. However, the capacity of the Bitcoin basic network is limited, which has caused users' transaction needs to spill over to Layer2 and related ecological projects. This spillover effect not only promotes the development of the BTCFi project, but also provides natural market traffic for RGB++ and Fiber.
The synergy between RGB++ and Fiber: the engine driving the innovation and development of BTCFi
The combination of RGB++ protocol and Fiber network not only solves the challenges at the technical level, but also brings unprecedented market opportunities to BTCFi (Bitcoin financial ecosystem). The synergy between the two runs through all aspects of asset issuance, circulation, payment and ecological applications, injecting new vitality into the Bitcoin ecosystem. Let's talk about their synergistic value from multiple dimensions.
1 Improving asset circulation efficiency: the combination of technology and network
The RGB++ protocol introduces a new asset issuance model to the Bitcoin ecosystem. Its core feature is to support the flexible operation and cross-chain flow of native assets. However, protocol support alone is not enough. The circulation of assets in real-world trading scenarios requires an efficient and secure payment network. The Fiber network provides this key link.
High-speed peer-to-peer transaction support
The Fiber network has an infinitely scalable transaction throughput and can carry the large-scale circulation needs of RGB++ assets, especially in decentralized finance (DeFi) and NFT trading scenarios. For example: a user issues an on-chain asset through RGB++, which can be quickly paid or transferred on Fiber with extremely low fees, without waiting for a long block confirmation on the Bitcoin main chain. In addition, Fiber's high-speed, low-fee, and high-throughput characteristics are also an excellent match for RWA issued through RGB++ and assets tokenized in the traditional financial system.
Seamless cross-chain transactions
RGB++'s Leap technology enables assets to cross chains without a bridge, while Fiber can seamlessly connect with channels including Bitcoin Lightning Network, Cardano Hydra, etc. CKB achieves low latency and high reliability in the asset flow process from the Bitcoin main chain to L2 (such as CKB blockchain, Lightning Network, DOGE, etc.) through the deep integration of RGB++ and Fiber. This bridgeless cross-chain method is particularly suitable for financial and payment scenarios, reducing the risk of cross-chain asset operations.
2 Supporting the prosperity of diversified assets
The flexibility of RGB++ design enables it to support multiple types of on-chain assets, including stablecoins, tokens, NFTs, and other innovative assets. The Fiber network provides solid underlying support for the payment and circulation of these assets.
The combination of stablecoins and payments
The Stable++ protocol based on RGB++ provides a new over-collateralization model, where users can mint stablecoins RUSD using Bitcoin and CKB. In addition, IPN (Interstellar Payment Network) also announced that it will use the RGB++ protocol to build a native payment network on the Bitcoin (BTC) mainnet and launch the first programmable compliant stablecoin USDI to promote the large-scale application of BTCFi and the Lightning Network. USDI will be anchored 1:1 with the corresponding currency and 100% backed by high-credit, high-liquidity assets. The use of the IPN network will strictly comply with relevant regulatory requirements such as anti-money laundering (AML), counter-terrorism financing (CFT) and know your customer (KYC), which will be more conducive to compliant institutions entering BTCFi. USDI and RUSD will provide native stablecoin support for all UTXO structure blockchain systems including BTC, CKB, DOGE, and BCH.
The high-performance transaction capabilities of the Fiber network make stablecoins such as USDI and RUSD a more attractive option for payments in the Bitcoin ecosystem, which not only reduces payment costs but also enhances the circulation capacity of stablecoins within the BTCFi ecosystem.
NFT market potential expansion
The current NFT market is mainly concentrated in the Ethereum and Solana ecosystems, and the combination of RGB++ and Fiber opens up new possibilities for NFTs in the Bitcoin ecosystem. For example, the Fiber network can support the display and trading of RGB++ NFTs across multiple chains. Users can not only purchase NFTs with Bitcoin native assets, but also quickly circulate them on multiple chains simultaneously.
Empowerment of meme assets
RGB++ supports the issuance of meme tokens within the Bitcoin ecosystem and enables low-cost dissemination and trading through the Fiber network. In a bull market dominated by memes, this model is likely to attract a large number of young retail investors. Currently, CKB.Fi, a meme launch platform based on CKB and RGB++, has been launched. It is reported that the Bitcoin "pump.fun" based on BTC and RGB++ will also be launched soon.
3. Enhanced asset privacy and security
In traditional blockchain networks, transaction privacy has always been the focus of users, and RGB++ and Fiber complement each other in this regard.
RGB++ Client Authentication Mode
The RGB++ protocol also allows users to run their own clients to directly verify and manage their own assets without having to trust third-party nodes, thereby improving the security and privacy of assets from the source.
Fiber’s decentralized design
The payment network's anti-censorship and data security are guaranteed, and users can enjoy the dual protection of efficiency and privacy at the same time.
This improvement in asset privacy and security will not only enhance the trust of institutions and high-net-worth users in BTCFi, but also provide a foundation for the construction of more complex financial applications.
4. Amplification of Ecological Network Effects
The combination of RGB++ and Fiber brings a higher network effect to the entire Bitcoin ecosystem. The two are not only deeply integrated in technology, but also can achieve synergistic amplification in ecological construction.
Acceleration of ecological development
The Fiber Network will provide developers with a complete SDK and tool set, making the development of lightning network applications based on RGB++ more convenient. Developers can quickly build decentralized applications (DApps), including lending, payment, insurance, and asset management platforms, further promoting the diversification of BTCFi.
Win-win situation for node service providers and users
The payment function of the Fiber network and the asset issuance capability of RGB++ have created a positive interaction between node service providers and users. Node service providers can earn more fees by supporting RGB++ and the Fiber network, while users can enjoy more efficient transaction services.
Import of on-chain and off-chain traffic
The Fiber network can also integrate off-chain traffic outside the Bitcoin ecosystem, and introduce more users and funds to BTCFi through cross-chain payments and asset transfers. For example, off-chain payment giants and traditional financial institutions can access Bitcoin asset payment scenarios through Fiber to expand the boundaries of application.
5. Activate the Positive Wealth Effect
The synergy between RGB++ and Fiber not only brings innovations in technology and application, but also injects a new round of imagination into the capital market. Driven by the Bitcoin bull market, the narrative of RGB++ and Fiber has become an important factor in attracting investors' attention.
Asset appreciation expectations
The flexibility of RGB++ and the high performance of Fiber have directly increased the market recognition of assets. Once the Fiber network is launched and applied on a large scale, RGB++ assets are expected to see explosive growth in price.
User growth and ecological prosperity
RGB++ and Fiber can attract more users to participate in the BTCFi ecosystem. The growth of users not only improves the liquidity of assets, but also creates higher network value for the Bitcoin ecosystem. This positive cycle effect will further promote the maximization of the synergistic value of RGB++ and Fiber.
Fiber Network's first batch of supported assets: driving BTCFi towards practical application
As an important extension of RGB++, Fiber Network will initially support the liquidity network and staking income mechanism of four RGB++ assets, injecting new vitality into Bitcoin native financial services (BTCFi).
Fiber Network’s first wave of supported assets include:
$CKB (Nervos native token): provides basic value and fuel for the Fiber network, connecting BTCFi and Nervos ecosystems.
$USDI (compliant stablecoin): Provides stable solutions for on-chain payments and decentralized finance through RGB++.
$ccBTC (1:1 Bitcoin reserve-backed token): uses the Fiber network to achieve decentralized liquidity lending and expand the financial attributes of BTC.
$Seal (RGB++ leading asset): With strong community support and protocol advantages, Seal has become an innovative representative in the Bitcoin meme economy and BTCFi scene.
Seal's market popularity and future potential
As the first leading RGB++ asset supported by Fiber, Seal has performed exceptionally strongly in the past week, with a seven-day increase of 430%. The driving factor behind this is not only the rapid development of the RGB++ ecosystem, but also the market expectations for the launch of the Fiber Network mainnet.
Liquidity staking income: unlocking new ways to increase the value of Bitcoin assets
In addition, in order to accelerate the mass adoption of the Lightning Network, the UTXO Stack in the CKB ecosystem will also launch a decentralized liquidity staking layer based on the Lightning Network. Users can earn additional income in the Fiber Network by holding and staking RGB++ assets (including $Seal, $USDI, etc.).
Technical highlights:
UTXO Stack leverages the high throughput of the Lightning Network and the flexibility of the RGB++ protocol to support trustless asset staking and revenue distribution.
The UTXO model ensures transparency and security of asset management.
Scene value:
For users, holding assets is not only an investment tool, but also allows them to participate in BTCFi's deep financial activities through staking and create continuous passive income.
Future Outlook: The core driving force behind the rise of BTCFi
The synergy between RGB++ and Fiber is not only a combination of technological innovation, but also an important driving force for the BTCFi ecosystem to mature. The deep integration of the two in terms of asset issuance, circulation, payment and ecological applications has brought unprecedented market imagination to the Bitcoin ecosystem, and directly promoted the actual implementation and application scenario expansion of BTCFi through the first batch of supported assets and liquidity pledge income mechanism. With the launch of the Fiber network, this synergy will be further manifested and may become the core driving force for the rise of BTCFi.
In the new golden track of BTCFi, RGB++ and Fiber have stood at the forefront of the times, and the future is worth waiting for all market participants.
