In this round of market trends, there is an undeniable sector that has led the silent Bitcoin ecosystem to break through, becoming the booster for this round of Bitcoin, creating countless wealth myths — inscriptions, and the rise of inscriptions has also attracted more attention to the Bitcoin ecosystem, giving birth to numerous derivative ecosystems, among which the most dazzling is Nervos CKB.
What we are going to talk about today is a new perspective on the Bitcoin ecosystem in this round of market trends — the Nervos CKB ecosystem
One, What is Nervos CKB?
The CKB ecosystem refers to the blockchain ecosystem built by Nervos Network (also known as CKB). Nervos Network is an open-source public blockchain project aimed at building a secure and flexible underlying blockchain protocol that supports various upper-layer applications and services.
In simple terms, this is a Bitcoin ecological expansion public chain based on a PoW + UTXO model.
Two, What is the Role of Nervos CKB?
CKB enhances the programmability and interoperability of Bitcoin through the RGB++ protocol, mapping Bitcoin UTXO into CKB Cell, thereby realizing smart contract functionality and bridge-less cross-chain based on Bitcoin L1 UTXO assets. CKB extends Bitcoin through the Fiber Network, promoting the circulation of multiple assets within the Bitcoin Lightning ecosystem. CKB accelerates the large-scale adoption of the Lightning Network through UTXO Stack, providing better liquidity and yield models through decentralized staking protocols.
In simple terms, Nervos CKB maps Bitcoin UTXO through the RGB++ protocol and expands the implementation solutions of the Bitcoin ecosystem, realizes smart contracts, and accelerates interaction performance, providing a better yield model through staking protocols.
Three, What are the Characteristics of Nervos CKB?
1/ Dual Layer Structure: Nervos Network adopts a unique dual-layer architecture, with the bottom layer being the Common Knowledge Base (CKB) and the upper layer being a smart contract system called 'Cell.' This design allows different blockchain systems and smart contracts to work together on the same network.
2/ Decentralization: The CKB ecosystem emphasizes decentralization, not only in the distribution of network nodes but also encourages community participation in governance and development.
3/ Developer Friendly: Nervos Network provides developers with rich development tools and resources, supporting smart contract development in various programming languages such as Rust, JavaScript, etc.
4/ Asset Interoperability: CKB's design allows for interoperability between different blockchain assets, meaning that cross-chain asset circulation and usage can be realized within the CKB ecosystem.
5/ Security: By introducing an economic model and consensus mechanism, CKB ensures the security and long-term stability of the network. Its consensus mechanism is PoW (Proof of Work), but it is also exploring more environmentally friendly consensus mechanisms.
6/ Scalability: Although CKB's scalability is not as good as some blockchains specifically designed for high throughput, its design allows for increased transaction processing capacity through solutions like Layer 2.
7/ Community and Projects: There are many projects and DApps (Decentralized Applications) in development and operation within the CKB ecosystem, including decentralized finance (DeFi) projects, NFT (Non-Fungible Token) platforms, etc.
8/ Economic Incentives: CKB, as the native token of the network, is used to pay network fees, participate in consensus, and circulate as an asset within the ecosystem.
Four, Where is the Future of Nervos CKB?
1/ As a Layer 2 of the Bitcoin ecosystem, scalability and convenience bring a new narrative to the Bitcoin ecosystem.
Nervos Network is one of the scalability solutions for Bitcoin, adopting a more native approach and modifying the UTXO model that underpins Bitcoin. It improves the RGB protocol, providing Turing-complete contract capabilities for Bitcoin without the need for cross-chain bridges.
The birth of Ethereum's Layer 2 has absorbed a lot of traffic, but behind the traffic, it has silently eroded Ethereum's market share, and the income of Ethereum validators has plummeted, which is also a reason for the stagnation of the Ethereum ecosystem in this round. Due to inconvenient factors such as network speed in the Bitcoin ecosystem, Nervos CKB, as a Layer 2 of the Bitcoin ecosystem, not only solves the convenience issues but also expands the diversity of smart contracts. By improving the RGB protocol, it has increased speed and security while ensuring convenience and diversity.
2/ Innovative Financial Protocols in BTCFi — RGB++
RGB++ is an asset issuance and management protocol built on the Bitcoin blockchain, enhanced in functionality and performance by the support of the Nervos CKB blockchain.
RGB++ aims to leverage the security and consensus of Bitcoin while providing greater scalability and richer functionality through Nervos CKB, offering users and developers a new way to issue and manage various assets on the Bitcoin network.
3/ Passkey Wallet Leads the New Experience of Decentralized Payments — JoyID + Lightning Network
JoyID is the first Bitcoin multi-chain wallet integrated with Passkey technology. In addition to supporting Bitcoin and other public chains, it will support the Lightning Network and Fiber Network, and will introduce stablecoin payment features, aiming to become the wallet entry for stablecoin payments via the Lightning Network and Fiber Network. Meanwhile, JoyID will integrate the staking protocol of UTXO Stack, enabling users to easily stake BTC, CKB, and stablecoins into DLSP to enhance liquidity for the Lightning Network. Thanks to JoyID's user-friendly experience, the staking process will become simple and easy.
4/ The Future Landscape of Cross-Chain Circulation — Fiber Network
Fiber Network is the Lightning Network implemented on the Nervos CKB chain. It can closely integrate 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. Fiber Network utilizes the Turing-complete capability of the CKB blockchain, natively supporting user-defined assets. 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 bridge-less cross-chain method, ultimately entering the Fiber Network and Lightning Network, as the two are seamlessly interconnected.
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