Written by: Alex Liu, Foresight News
As the price of Bitcoin (BTC) surpassed $90,000 within the year and even approached $100,000, market enthusiasm continues to soar. Bitcoin is no longer just synonymous with digital gold; it is becoming an important engine driving blockchain technology innovation and industrial ecological expansion. Against this backdrop, issues surrounding Bitcoin's expansion, asset issuance, and ecological construction have become industry hotspots. Among them, the CKB project and its RGB++ protocol, along with the upcoming Fiber network, play a key role in propelling the Bitcoin ecosystem (BTCFi) into a new phase. This article will explore how RGB++ and Fiber can unlock a new round of development dividends for BTCFi from multiple perspectives, including technology, market potential, and industry impact.
The 'spillover effect' of the Bitcoin ecosystem and the rise of BTCFi
In the history of Bitcoin ecosystem expansion, asset issuance has always been a challenging proposition. The infrastructure of Bitcoin, due to its non-Turing complete design, inherently lacks support for smart contracts. This limitation has caused many innovative asset protocols to face bottlenecks in functionality. However, as Bitcoin's price continues to reach new highs, the market's demand for Bitcoin assets and Bitcoin finance gradually becomes apparent, forming a broad 'spillover effect'.
The Insights from the Inscriptions Craze and Asset Issuance Demand
At the beginning of 2023, the rise of Bitcoin inscriptions (Ordinals) showcased the market's strong demand for on-chain asset issuance. The inscriptions protocol allows users to permanently record data on the Bitcoin blockchain, triggering a surge in artworks, NFTs, and certain asset issuances. However, the inscriptions protocol can only store data and cannot meet the more complex functional demands of assets. For instance, while the BRC20 protocol attempts to mimic Ethereum's ERC20, its tokens lack transfer and minting capabilities, making it difficult to adapt to mainstream asset issuance scenarios.
In contrast, the RGB++ protocol, with its design that combines Bitcoin's native nature and flexibility, has become a highly anticipated solution in the market. By introducing isomorphic binding and Leap bridge-free cross-chain technology, RGB++ endows Bitcoin assets with native cross-chain and flexible operational capabilities, laying the foundation for further development of the BTCFi ecosystem.
RGB++: Redefining Bitcoin Asset Issuance
The core innovation of RGB++ lies in its breakthrough of the limitations of the traditional RGB protocol, addressing the pain points of programmability for Bitcoin assets and significantly enhancing the efficiency and liquidity of asset issuance.
Isomorphic Binding: The Convenience of Native Assets
The traditional RGB protocol adopts off-chain verification methods, requiring users to run a client to operate assets, which can easily lead to data island issues, limiting the protocol's application in decentralized finance (DeFi). The isomorphic binding feature of RGB++ allows users to directly manage and operate assets using Bitcoin accounts, simplifying the interaction process while ensuring data transparency and interoperability.
Leap Technology: A Breakthrough in Bridge-Free Cross-Chain
The Leap technology is another core function of RGB++. It achieves 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 bridge-free cross-chain method not only reduces the technical complexity of cross-chain asset transfers but also significantly lowers associated transaction costs and risks.
The technical architecture of RGB++ provides a new paradigm for asset issuance and circulation in the Bitcoin ecosystem, with its flexibility and efficiency validated by the market, garnering attention and support from multiple key players in the Bitcoin space.
Fiber: Igniting the Spark of 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, providing fast, low-cost, and decentralized multi-currency payments and peer-to-peer transactions for RGB++ assets. The Fiber network, expected to launch in mid-December, not only meets the high-speed payment needs of Bitcoin assets but also provides critical infrastructure for the landing of decentralized applications.
High-Performance Payment Network
The Fiber network introduces more efficient off-chain channels, supporting multi-currency payments and peer-to-peer transactions, significantly enhancing the transaction throughput and cost efficiency of RGB++ assets. This feature provides strong support for DeFi applications and NFT (called DOB in RGB++) transactions in the Bitcoin ecosystem, enabling RGB++ protocol assets to achieve rapid circulation within the Fiber network.
Decentralization and Scalability
Unlike traditional on-chain scaling solutions, the Fiber network employs a decentralized architectural design, its scalability can meet the growing transaction demands in the future. Moreover, Fiber is also compatible with Bitcoin's Lightning Network, enabling RGB++ assets to integrate into Bitcoin's existing payment ecosystem, further expanding its application scenarios.
CKB's Advantage in the Global Competition
In the global competition of BTCFi, both Eastern and Western solutions have their advantages but also have significant shortcomings:
Innovations in Eastern solutions like Runes and Ordinals are rapid, but the supporting infrastructure and ecological completeness are insufficient.
Western solutions like RGB and Taproot started earlier but have developed relatively slowly, lacking effective market implementation.
In contrast, CKB demonstrates comprehensive competitive advantages in technology, ecology, and market implementation:
Technological Leadership: The RGB++ protocol fills the gap in cross-chain asset issuance in the Bitcoin ecosystem through innovations such as Leap and isomorphic binding, and its technological advantages position it to integrate the Bitcoin ecosystem.
Ecological Completeness: The launch of the Fiber network provides solid infrastructure support for RGB++, while compliant stablecoin USDI, decentralized over-collateralized stablecoin RUSD, DEX UTXO Swap, liquidity staking management UTXO Stack, and other application protocols further enrich the functional modules within the ecosystem.
Market Recognition: The CKB project has long been deeply involved in the Bitcoin ecosystem, gaining support from top global institutions such as China Merchants International, Sequoia China, Polychain Capital, as well as backing from well-known miners like Bitmain and Broadeng, with mainstream mining pools such as F2Pool and Binance Pool also supporting CKB mining.
The Blue Ocean of BTCFi: Market Potential and Wealth Effect
Positive Feedback Mechanism of the Bitcoin Ecosystem
The rapid rise in Bitcoin prices has attracted a large number of new users, who have raised higher demands for the assets and services within the ecosystem. However, the capacity of Bitcoin's foundational network is limited, leading to users' trading demands spilling over into Layer 2 and related ecological projects. This spillover effect has not only driven the development of BTCFi projects but also provided natural market traffic for RGB++ and Fiber.
The Synergistic Effects of RGB++ and Fiber: The Engine Driving Innovation and Development of BTCFi
The combination of the RGB++ protocol and Fiber network not only addresses technical challenges but also brings unprecedented market opportunities to BTCFi (Bitcoin Financial Ecosystem). The synergistic effects between the two span asset issuance, circulation, payment, and ecological applications, injecting new vitality into the Bitcoin ecosystem. Let's discuss their collaborative value from multiple dimensions.
1 Enhancing Asset Circulation Efficiency: The Combination of Technology and Network
The RGB++ protocol introduces a brand new asset issuance model to the Bitcoin ecosystem, characterized by supporting flexible operations of native assets and cross-chain liquidity. However, having protocol support alone is not enough; the circulation of assets in real transaction scenarios requires an efficient and secure payment network. The Fiber network precisely provides this critical link.
High-Speed Peer-to-Peer Transaction Support
The Fiber network possesses infinitely scalable transaction throughput, capable of accommodating the large-scale circulation needs of RGB++ assets, particularly in decentralized finance (DeFi) and NFT trading scenarios. For example: a user issues an on-chain asset through RGB++, which can be paid or transferred quickly on Fiber with extremely low fees, without waiting for long block confirmations on the Bitcoin main chain. Additionally, Fiber's high-speed, low-fee, and high-throughput characteristics align excellently with RWA issued through RGB++ and assets tokenized by traditional financial systems.
Seamless Cross-chain Transactions
The Leap technology of RGB++ grants assets cross-chain capabilities without bridges, while Fiber can seamlessly connect with channels including Bitcoin's Lightning Network and Cardano Hydra. 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 deep integration with RGB++ and Fiber. This bridge-free cross-chain method is particularly suitable for financial and payment scenarios, reducing the risks associated with cross-chain operations.
2 Supporting the Prosperous Development of Diverse Assets
The flexibility of RGB++ design allows it to support various 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.
Combination of Stablecoins and Payments
The Stable++ protocol based on RGB++ provides a new over-collateralization model, allowing users to mint the stablecoin RUSD using Bitcoin and CKB. Additionally, the IPN (Interstellar Payment Network) has announced the adoption of 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 1:1 pegged to the corresponding currency and supported by 100% reserves provided 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 Financing of Terrorism (CFT), and Know Your Customer (KYC), making it more conducive for compliant institutions to enter BTCFi. USDI and RUSD will provide native stablecoin support for all UTXO-structured blockchain systems, including BTC, CKB, DOGE, and BCH.
The high-performance trading capabilities of the Fiber network make stablecoins like USDI and RUSD more attractive options for payments within the Bitcoin ecosystem, not only lowering payment costs but also enhancing the circulation capacity of stablecoins in the BTCFi ecosystem.
The Potential Expansion of the NFT Market
The current NFT market is mainly concentrated in ecosystems like Ethereum and Solana, while 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, allowing users to purchase NFTs with native Bitcoin assets and quickly synchronize their flow across multiple chains.
Empowerment of meme assets
RGB++ supports the issuance of meme tokens within the Bitcoin ecosystem and achieves low-cost distribution and trading through the Fiber network. During a bull market driven by memes, this model is likely to attract a large number of young retail investors. Currently, the meme launch platform based on CKB and RGB++, CKB.Fi, has gone live, and it is reported that the Bitcoin 'pump.fun' based on BTC and RGB++ is also about to be launched.
3 Enhancement of Asset Privacy and Security
In traditional blockchain networks, transaction privacy has always been a focal point for users, while RGB++ and Fiber have achieved complementary advantages in this regard.
The Client Verification Model of RGB++
The RGB++ protocol also allows users to run clients themselves, verifying and managing their assets directly without relying on third-party nodes, thereby enhancing asset security and privacy from the source.
The Decentralized Design of Fiber
Ensured the censorship resistance and data security of the payment network, allowing users to enjoy both efficiency and privacy.
The enhancement of asset privacy and security not only boosts institutional and high-net-worth users' trust in BTCFi but also lays the foundation for constructing more complex financial applications.
4 Amplification of Ecological Network Effects
The combination of RGB++ and Fiber brings higher network effects to the entire Bitcoin ecosystem. Both not only achieve deep integration in technology but can also amplify collaboration in ecological construction.
Acceleration of Ecological Development
The Fiber network will provide developers with a complete SDK and toolset, making the development of Lightning Network applications based on RGB++ more convenient. Developers can quickly build decentralized applications (DApps), including lending, payments, insurance, and asset management platforms, further promoting the diversification of BTCFi.
Win-win for node service providers and users
The payment capabilities of the Fiber network and the asset issuance capabilities of RGB++ create a positive interaction between node service providers and users. Node service providers can earn more fees by supporting RGB++ and Fiber networks, while users enjoy more efficient trading services.
Importing On-chain and Off-chain Traffic
The Fiber network can also integrate off-chain traffic outside of the Bitcoin ecosystem, introducing 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, expanding application boundaries.
5 Activating Positive Wealth Effects
The synergistic effect of RGB++ and Fiber not only brings innovations at the technical and application levels but also injects a new round of imagination into the capital markets. Driven by the Bitcoin bull market, the narratives of RGB++ and Fiber have become important factors attracting investors' attention.
Asset Appreciation Expectations
The flexibility of RGB++ and the high performance of Fiber directly enhance the market recognition of assets. Once the Fiber network goes live and achieves large-scale application, RGB++ assets are expected to experience explosive price growth.
User Growth and Ecological Prosperity
RGB++ and Fiber can attract more users to participate in the BTCFi ecosystem, and the growth of users not only enhances the liquidity of assets but also creates higher network value for the Bitcoin ecosystem. This positive feedback loop will further maximize the collaborative value of RGB++ and Fiber.
The First Supported Assets of Fiber Network: Promoting the Practicality of BTCFi
As an important extension of RGB++, the Fiber Network will first support liquidity networks and staking yield mechanisms for four RGB++ assets, injecting new vitality into Bitcoin native financial services (BTCFi).
The first supported assets of Fiber Network include:
$CKB (Nervos native token): Provides foundational value and fuel for the Fiber network, connecting BTCFi and the Nervos ecosystem.
$USDI (Compliant Stablecoin): Offers stable solutions for on-chain payments and decentralized finance through RGB++.
$ccBTC (1:1 Bitcoin Reserve-backed Token): Achieves decentralized liquidity lending using the Fiber network, expanding the financial properties 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 scenarios.
Market Popularity and Future Potential of Seal
As the leading asset of RGB++ supported by Fiber, Seal has performed exceptionally strong over the past week, with a seven-day increase of up to 430%. The driving factors behind this are not only the rapid development of the RGB++ ecosystem but also the market expectations surrounding the launch of the Fiber Network mainnet.
Liquidity Staking Yields: Unlocking New Ways for Bitcoin Asset Appreciation
In addition, to accelerate the large-scale adoption of the Lightning Network, the UTXO Stack in the CKB ecosystem will launch a decentralized liquidity staking layer based on the Lightning Network. Users can earn additional yields in the Fiber network by holding and staking RGB++ assets (including $Seal, $USDI, etc.).
Technical Highlights:
The UTXO Stack leverages the high throughput of the Lightning Network and the flexibility of the RGB++ protocol, supporting trustless asset staking and yield distribution.
The UTXO model ensures transparency and security in asset management.
Scenario Value:
For users, holding assets is not only an investment tool but also allows participation in the deeper financial activities of BTCFi through staking, creating continuous passive income.
Future Outlook: The Core Driving Force Behind the Rise of BTCFi
The synergistic effects of RGB++ and Fiber are not merely a combination of technological innovations; they are also a significant driving force in the maturation of the BTCFi ecosystem. The deep integration of the two across asset issuance, circulation, payment, and ecological applications brings unprecedented market imagination to the Bitcoin ecosystem, while the first batch of supported assets and liquidity staking yield mechanisms directly promote the practical implementation and expansion of application scenarios for BTCFi. With the launch of the Fiber network, this synergistic effect will further manifest and may become the core driving force behind the rise of BTCFi.
In this brand new golden track of BTCFi, RGB++ and Fiber have already stood at the forefront of the times, and the future is worth watching for all market participants.
