As the price of Bitcoin (BTC) broke through $90,000 and once approached $100,000 within the year, market enthusiasm continues to rise. Bitcoin is no longer just synonymous with digital gold; it is becoming an important engine driving blockchain technology innovation and industrial ecosystem expansion. Against this backdrop, topics around Bitcoin's scalability, asset issuance, and ecosystem 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 advancing the Bitcoin ecosystem (BTCFi) to a new stage. This article will explore from multiple angles, including technology, market potential, and industry impact, how RGB++ and Fiber can unleash a new round of development dividends for BTCFi.
The 'overflow effect' of the Bitcoin ecosystem and the rise of BTCFi
In the history of the expansion of the Bitcoin ecosystem, 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 with limited functionality. However, as Bitcoin prices continue to reach new highs, market demand for Bitcoin assets and Bitcoin finance has gradually emerged, forming a broad 'overflow effect.'
Insights from the craze of inscriptions and asset issuance demands
The rise of Bitcoin inscriptions (Ordinals) in early 2023 demonstrated the strong market demand for on-chain asset issuance. The inscriptions protocol allows users to permanently record data on the Bitcoin blockchain, triggering a craze for artwork, NFTs, and certain asset issuance. However, the inscriptions protocol can only store data and cannot meet more complex asset functionality requirements. For example, 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 combining Bitcoin's native properties and flexibility, has become a highly anticipated solution in the market. By introducing isomorphic binding and Leap bridge-less cross-chain technology, RGB++ empowers Bitcoin assets with native cross-chain and flexible operation capabilities, laying the groundwork for further development of the BTCFi ecosystem.
RGB++: Redefining Bitcoin asset issuance
The core innovation of RGB++ lies in its ability to break through the limitations of traditional RGB protocols, not only addressing the pain points of programmability for Bitcoin assets but also significantly enhancing the efficiency and liquidity of asset issuance.
Isomorphic binding: The convenience of native assets
The traditional RGB protocol uses off-chain validation methods, necessitating that users run clients to operate their assets, which can easily lead to data island issues and limit the protocol's applications in decentralized finance (DeFi). In contrast, the isomorphic binding feature of RGB++ allows users to directly manage and operate assets using their Bitcoin accounts, simplifying the interaction process while ensuring data transparency and interoperability.
Leap technology: A breakthrough in bridge-less cross-chain
Leap technology is another core feature of RGB++. By deeply integrating assets with the Bitcoin UTXO model, it enables seamless flow of assets between the L1 Bitcoin main chain and L2 CKB blockchain. This bridge-less cross-chain approach 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 within the Bitcoin ecosystem, with its flexibility and efficiency validated by the market and supported by 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 demands 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 improving the trading throughput and cost efficiency of RGB++ assets. This feature provides strong support for DeFi applications and NFT transactions (referred to as DOB in RGB++) in the Bitcoin ecosystem, enabling rapid circulation of RGB++ protocol assets within the Fiber network.
Decentralization and scalability
Unlike traditional on-chain scalability solutions, the Fiber network adopts a decentralized architectural design, and its scalability meets the growing transaction demands of the future. Additionally, Fiber is compatible with Bitcoin's Lightning network, allowing RGB++ assets to integrate into the existing Bitcoin payment ecosystem, further expanding their application scenarios.
CKB's advantages in the global competition
In the global competition of BTCFi, both Eastern and Western solutions have their advantages but also significant shortcomings:
Eastern solutions like Runes and Ordinals innovate rapidly but lack sufficient supporting infrastructure and ecosystem completeness.
Although the Western RGB and Taproot started early, their development speed is relatively slow, lacking effective market implementation.
In contrast, CKB has demonstrated comprehensive competitive advantages in technology, ecosystem, and market implementation:
Technological leadership: The RGB++ protocol fills the gap in cross-chain asset issuance within the Bitcoin ecosystem through innovative technologies such as Leap and isomorphic binding, giving it the potential to integrate the Bitcoin ecosystem.
Ecosystem 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, and liquidity staking management UTXO Stack 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 Bank International, Sequoia China, and Polychain Capital, as well as well-known miners like Bitmain and Broadeng. Mainstream mining pools like F2Pool and Binance Pool have also supported CKB mining.
BTCFi's blue ocean: Market potential and wealth effects
Positive feedback mechanism in the Bitcoin ecosystem
The rapid rise in Bitcoin prices has brought a large influx of new users, who have higher demands for the assets and services within the ecosystem. However, the capacity of Bitcoin's foundational network is limited, causing users' transaction demands to overflow into Layer 2 and related ecosystem projects. This overflow effect not only drives the development of BTCFi projects but also provides natural market traffic for RGB++ and Fiber.
The synergistic effect of RGB++ and Fiber: The engine driving the innovative development of BTCFi
The combination of the RGB++ protocol and the 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 various aspects of asset issuance, circulation, payment, and ecosystem applications, injecting new vitality into the Bitcoin ecosystem. Let's discuss their synergistic value from multiple dimensions.
1 Improving asset circulation efficiency: The combination of technology and networks
RGB++ protocol introduces a brand new asset issuance model to the Bitcoin ecosystem, with core features supporting the flexible operation of native assets and cross-chain liquidity. However, protocol support alone is not enough; the circulation of assets in real transaction scenarios requires an efficient and secure payment network. The Fiber network provides this critical link.
High-speed peer-to-peer transaction support
The Fiber network boasts infinitely scalable transaction throughput, capable of accommodating the large-scale circulation demands 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 at a very low fee, without waiting for the lengthy block confirmation time on the Bitcoin main chain. Furthermore, Fiber's characteristics of high speed, low fees, and high throughput align well with RWA issued through RGB++ and assets tokenized from traditional financial systems.
Seamless cross-chain transactions
The Leap technology of RGB++ endows assets with bridge-less cross-chain capabilities, while Fiber can seamlessly connect with channels including the Bitcoin Lightning Network and Cardano Hydra. CKB achieves low latency and high reliability in the asset transfer 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 bridge-less cross-chain method is particularly suitable for financial and payment scenarios, reducing the risks associated with cross-chain asset operations.
2 Support the prosperous development of diverse assets
The flexibility designed in RGB++ 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.
The combination of stablecoins and payments
The Stable++ protocol based on RGB++ provides a new over-collateralization model, allowing users to use Bitcoin and CKB to mint the stablecoin RUSD. Additionally, the Interstellar Payment Network (IPN) has announced plans to adopt the RGB++ protocol to construct 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, supported by high credit, high liquidity assets providing 100% reserve support. 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), making it more favorable 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 reducing payment costs but also enhancing the liquidity of stablecoins within 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 instance, the Fiber network can support the display and trading of RGB++ NFTs across multiple chains, allowing users to purchase NFTs with Bitcoin native assets and quickly synchronize transactions across multiple chains.
Empowerment of meme assets
RGB++ supports the issuance of meme tokens within the Bitcoin ecosystem and achieves low-cost dissemination and trading via the Fiber network. In a bull market focused on memes, this model is likely to attract a large influx of young retail investors. Currently, the meme launch platform CKB.Fi based on CKB and RGB++ has already gone live, and it is reported that the Bitcoin 'pump.fun' based on BTC and RGB++ will also be launched soon.
3 Enhancing asset privacy and security
In traditional blockchain networks, transaction privacy has always been a focal point for users, and RGB++ and Fiber have achieved complementary advantages in this regard.
The client validation model of RGB++
The RGB++ protocol also allows users to run clients themselves, directly verifying and managing their own assets without trusting third-party nodes, significantly enhancing the security and privacy of assets from the source.
The decentralized design of Fiber
Ensures the anti-censorship and data security of the payment network, allowing users to enjoy both efficiency and privacy protection.
The enhancement of asset privacy and security not only strengthens the trust of institutions and high-net-worth users in BTCFi but also provides a foundation for the construction of more complex financial applications.
4 Amplifying the ecosystem network effect
The combination of RGB++ and Fiber brings higher network effects to the entire Bitcoin ecosystem. The two not only integrate deeply on a technical level but can also achieve synergistic amplification in ecosystem construction.
Acceleration of ecosystem 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 between node service providers and users
The payment functionality of the Fiber network and the asset issuance capability of RGB++ fostered positive interactions between node service providers and users. Node service providers can earn more transaction fees by supporting RGB++ and the Fiber network, while users enjoy more efficient transaction services.
Importing on-chain and off-chain traffic
The Fiber network can also integrate off-chain traffic outside the Bitcoin ecosystem, bringing more users and funds to BTCFi through cross-chain payments and asset transfers. For instance, off-chain payment giants and traditional financial institutions can access Bitcoin asset payment scenarios through Fiber, broadening application boundaries.
5 Activate positive wealth effects
The synergy between RGB++ and Fiber not only brings technological and application-level innovations but also injects a new round of imagination into the capital markets. Driven by the Bitcoin bull market, the narrative of RGB++ and Fiber has become an important factor in attracting investor attention.
Expectations for asset appreciation
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 scalable application, RGB++ assets are expected to experience explosive price growth.
User growth and ecosystem 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 synergistic value of RGB++ and Fiber.
The first supported assets of the Fiber Network: Pushing BTCFi toward practical application
As an important extension of RGB++, the Fiber Network will initially support the liquidity network and staking yield mechanism for four RGB++ assets, injecting new vitality into Bitcoin's native financial services (BTCFi).
The first supported assets of the Fiber Network include:
CKB (Nervos native token): Provides fundamental value and fuel for the Fiber network, connecting BTCFi and the Nervos ecosystem.
USDI (compliant stablecoin): Offers a stable solution for on-chain payments and decentralized finance through RGB++.
ccBTC (1:1 Bitcoin reserve-backed token): Utilizes the Fiber network to achieve decentralized liquidity lending, expanding 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 scenarios.
The market heat and future potential of Seal
As the leading RGB++ asset supported by Fiber, Seal has shown exceptional strength in the past week, with a seven-day increase of up to 430%. The driving factors behind this not only include the rapid development of the RGB++ ecosystem but also the market expectations surrounding the launch of the Fiber Network mainnet.
Liquidity staking yield: Unlocking new ways for Bitcoin asset appreciation
Moreover, to accelerate the large-scale adoption of the Lightning network, the UTXO Stack within the CKB ecosystem will also launch a decentralized liquidity staking layer based on the Lightning network. Users can earn additional rewards on the Fiber network by holding and staking RGB++ assets (including $Seal, $USDI, etc.).
Technical highlights:
UTXO Stack utilizes the high throughput of the Lightning network and the flexibility of the RGB++ protocol to support 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 them to participate in deeper financial activities within BTCFi through staking, creating continuous passive income.
Future outlook: The core driving force behind the rise of BTCFi
The synergistic effect of RGB++ and Fiber is not just a combination of technological innovations but also an important driving force for the maturity of the BTCFi ecosystem. The deep integration of the two in asset issuance, circulation, payment, and ecosystem applications brings unprecedented market imagination to the Bitcoin ecosystem, and through the first supported assets and liquidity staking yield mechanisms, it directly promotes the practical landing 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 the new golden track of BTCFi, RGB++ and Fiber are at the forefront of the times, and the future is worth watching for all market participants.
