1️⃣ Introduction to Nervos CKB

Nervos CKB is a Layer 1 blockchain that stores all types of common knowledge, unlike Bitcoin, which is limited to currency. CKB can also store valuable cryptographic proofs, providing security for higher-level (Layer 2) protocols.

Bitcoin and Nervos CKB are both systems for storing and verifying common knowledge. Bitcoin uses the UTXO set, verified through its scripts. Nervos CKB generalizes Bitcoin's data structure and scripting capabilities, storing its global state as a set of programmable units (referred to as Cell), and runs user-defined Turing-complete scripts through a virtual machine to validate its state transitions. In simple terms, Nervos CKB is a public chain built on the foundation of the PoW + UTXO model, fully isomorphic to BTC, aimed at providing cross-chain interoperability and scalability support for the Bitcoin ecosystem.

CKB enhances the programmability and interoperability of Bitcoin through the RGB++ protocol, mapping Bitcoin UTXOs to CKB Cells, thus enabling smart contract functionality and bridge-less cross-chain operations based on Bitcoin L1 UTXO assets. CKB expands Bitcoin through the Fiber Network, promoting the circulation of multiple assets within the Bitcoin Lightning ecosystem. The CKB mainnet was launched in November 2019 and completed its first mining reward halving in November 2023.

2️⃣ What is the relationship between RGB++ and CKB?

RGB++ as a Bitcoin layer asset issuance protocol forms a unique synergistic relationship with CKB. CKB plays the role of an optional data availability layer and smart contract execution layer within this ecosystem. This flexible architecture design allows the entire system to maintain independence while fully leveraging their respective advantages. Theoretically, RGB++ can choose other UTXO chains as its underlying support, and CKB can also support other protocols including Atomicals and Runes.

The Bitcoin ecosystem is undergoing a revolutionary transformation. As an infrastructure, Nervos CKB demonstrates strong potential with its unique positioning. CKB is not just an ordinary public chain; it is a complete system for storing common knowledge. Unlike Bitcoin, which focuses on monetary attributes, CKB can store various cryptographic proofs, providing a secure foundation for higher-level protocols. This design philosophy makes it a key link connecting the Bitcoin ecosystem.

3️⃣ Financial Innovations Brought by RGB++ to BTCfi

🚀 IBO: Innovative Token Issuance Model

Initial Bitcoin Offering (IBO) is an important innovation brought by RGB++. This issuance mechanism automatically creates liquidity pools on UTXOSwap through smart contracts, cleverly balancing the contradiction between traditional venture capital models and fair issuance. Project teams can maintain enthusiasm while the community can fully participate, forming a positive ecological cycle. UTXOSwap, as a decentralized exchange, not only supports basic currency swaps but also enables advanced features such as limit orders and TWAP trading.

⚡️ Bridge-less Cross-chain: Breakthrough Technological Innovation

The bridge-less cross-chain technology of RGB++ fundamentally changes the traditional paradigm of asset cross-chain transfers. Users can directly transfer assets between different UTXO chains without relying on traditional multi-signature cross-chain bridges, significantly enhancing security and efficiency. This technology allows asset liquidity within the Bitcoin ecosystem to reach unprecedented levels, laying a solid foundation for the development of BTCFi.

🌐 Ecological Interconnection: Building a Borderless Financial Network

Through the RGB++ Layer, assets on multiple UTXO chains such as Bitcoin, Dogecoin, and BCH can achieve seamless integration. Users can trade assets on the Cardano chain using tokens from the Bitcoin chain and participate in Bitcoin L2 GameFi with meme coins from the Dogecoin chain. This cross-chain interoperability pushes the UTXO world towards a truly borderless future.

With the continuous development of CKB and the RGB++ Layer, the Bitcoin ecosystem is ushering in a qualitative leap. Complete DeFi infrastructure, innovative asset issuance mechanisms, and seamless cross-chain interoperability are driving BTCFi towards prosperity. We have reason to believe that this ecosystem will replicate or even surpass the glory of Ethereum's DeFi Summer, ushering in a new era of Bitcoin finance.