What are the differences between Bitcoin and Ethereum? Some say block size, others say consensus mechanism, and some say Ethereum has a foundation influencing project development.

However, the most fundamental difference is that Ethereum, compared to Bitcoin, has a Turing-complete development environment, which was also a major competitive point for early Layer 1.

1. So what is Turing completeness?

In the simplest terms, Ethereum supports the development of on-chain applications, while Bitcoin does not.

Bitcoin's purity in the current market is not only due to its performance and POW consensus but also closely related to its lacking on-chain ecological environment. Before inscriptions appeared, the only application scenario for Bitcoin that the market could think of was in the payment field. Thus, in previous Bitcoin scaling solutions, most were focused on more vertical applications in the payment sector like lightning channels.

Even after the inscription craze, the common solutions in the market still introduce inscription assets into the EVM execution environment to build applications. Strictly speaking, it does not change the issues with Bitcoin; it merely grafts onto Bitcoin externally.

The protagonist of this article, Nervos Network, as an established infrastructure, can show how it operates, and through the explanation in this article, help you understand such a potentially complex and abstract infrastructure.

2. Plan Details

I hope to provide the most understandable examples or language to help you grasp the design details of this L1:

（1）First of all, CKB's account model design on-chain is the same and compatible with $BTC . This is a premise. This model is called UTXO. The specific principles are temporarily unimportant; just know that they both use this model.

（2）Secondly, CKB and the Bitcoin chain both use the POW consensus mechanism, which means that both require miners and mining rigs as the most fundamental security support. Moreover, the algorithm used is an upgraded version of Bitcoin's, aimed at achieving more efficient on-chain performance. We don't need to understand the algorithmic principles; we just need to understand its purpose.

（3）Next, compared to BTC, CKB is like Ethereum to Bitcoin. CKB fully supports the development environment for on-chain Turing-complete applications. In summary, comparing CKB and ETH, one can say that CKB is closer to BTC while ETH is a relatively independent system.

（4）Additionally, the core focus of CKB is its RGB++ protocol launched this year. This protocol is a standard for asset issuance and is the main focus of this article: its predecessor, the RGB protocol, is a scaling solution aimed at enabling smart contracts and asset issuance for Bitcoin without changing the Bitcoin mainnet.

The principle of implementation is to bind assets to specific Bitcoin UTXO models, allowing these assets to transfer along with the on-chain UTXO.

It is somewhat similar to Ethereum's Rollup, which uploads transactions to the Ethereum main chain. However, because Bitcoin has a different account model, RGB places transactions and assets at a more fundamental level. Nevertheless, as the data is stored under the Bitcoin main chain like Rollup, there are limitations in instant accessibility.

The RGB++ protocol of CKB extends and enhances the principles behind the original RGB protocol by using CKB as the data availability and execution layer for Bitcoin. Simply put, compared to the RGB protocol, CKB's RGB++ scheme is like a eunuch having something artificial installed; although it is still not the Bitcoin main chain, it is very close to it.

Through this binding-like scheme, Bitcoin UTXOs can be mapped to CKB's on-chain asset model, achieving seamless integration with CKB's Turing-complete smart contracts. Therefore, by using RGB++, CKB can execute more complex smart contracts for Bitcoin.

（5）Finally, it is worth mentioning that CKB is an L1, but functionally it actually belongs to the L2 of BTC. However, even so, it does not diminish the fact that CKB itself is L1. Therefore, like Ethereum, it has its own unique L2 scaling solution. Since it is scaling, its core purpose is certainly to help improve the performance of this L1, and this scaling solution has already been launched on its mainnet.

I hope that through the above five points, friends can have a more intuitive understanding of what CKB this L1 does and the relationship it has with Bitcoin.

I believe that in the research of infrastructure, there are still no creators in the square who can explain as simply and understandably as I do.

Next, we will enter some more practical sections: token economy and secondary market conditions.

The total supply of CKB's basic issuance is 33.6 billion. In addition, there will be an annual increase of 1.344 billion, so theoretically, there is no upper limit to its total supply (currently 45.3 billion).

However, the design of this issuance is quite interesting; it is based on the current market state of the tokens. For example, if currently 50% of the coins are staked, 20% are in circulation, and 30% are locked in DAO funds, then 50% of the issuance will be allocated to miners as incentives, 20% will go to the treasury fund, and 30% will be allocated to the DAO.

CKB's method of issuance allows miners' earnings to be independent of transaction fees and is more closely tied to the use of blockchain as a value storage platform, ensuring the long-term sustainability of network security.

（1）Currently, in the daily K-line cycle of $CKB , we can see that there was a decline before; the position of the decline was a 0.618 retracement from the previous section. The rebound strength at this retracement position is not as strong as the 0.382 retracement point, so we should be relatively cautious about the continuation of the trend in the future.

（2）It can be seen that above the current price, I believe that the price of 0.15 was relatively clear before, but after reaching this price level, the bullish force may begin to entangle with the resistance until it breaks through. The next resistance zone is 0.17.

（3）Between the intervals, there is trading space in the short term. Currently, there is not much activity in the Bitcoin ecosystem. If considering a spot ambush strategy, resistance levels can be used as a reference, and support levels in the Fibonacci backtesting phase on the short term can serve as entry points.

This article ends here, hope it can be helpful to you~#CKB助力比特币生态