Bull Market Gold Rush: BTC Super Protocol RGB++ that combines topics and strength

Author: Mensh, ChainCatcher Editor: Nianqing, ChainCatcher

Since the beginning of the year, the BTC ecosystem has shown the market the community’s enthusiasm for asset issuance in the BTC ecosystem due to its non-Turing complete characteristics, realizing BTC expansion is not easy. Various expansion schemes are still fiercely competitive. As BTC approaches $100,000, with a nearly 50% increase since November, the long-awaited Bull Market signal has finally been sounded. With the subsequent surge in BTC volume, the BTC ecosystem has also undergone six months of precipitation, preparing to welcome the overflow of capital in the market. The BTC ecosystem’s super protocol RGB++, which integrates expectations and fundamentals, has enormous potential.

Homogeneous binding and Leap bridgeless Cross-Chain Interaction work together, making asset issuance flexible and efficient

The idea of issuing assets on BTC has been around for a long time. As early as 2013, colored coins were the first attempt to issue assets on the BTC Mainnet. Subsequently, various protocols such as Runes, Atomicals, Ordinals, RGB, Taproot, BRC20, etc. appeared in the BTC ecosystem. However, due to the incomplete Turing completeness of the BTC UTXO graph, asset issuance in the BTC ecosystem has always been difficult to balance between BTC’s native nature and flexibility.

The Taproot Asset on the Lighting Network, although it can achieve high TPS with the help of the Lighting Network, does not support complex Smart Contracts, only supports Tokens. Ordinals, as an artwork itself, have poor scalability, and on this basis, imitating ERC20, the complete functionality of Tokens is written into the BTC output script. The BRC20 only stores data and cannot transfer and mint. Although the Tokens issued by Atomicals and Runes have been optimized, the transfer calculation is completely handled by the BTC underlying network, so it is also subject to the block generation speed and capacity limitations of BTC itself.

RGB provides a scalable smart contract system for BTC and Lighting Network, using UTXO combined with client validation to achieve off-chain expansion. It solves the programmability issue, but at the asset issuance level, users cannot see the asset status of others, which easily leads to client data isolation problems. The lack of transparency in data seriously hinders the development of Decentralized Finance and other applications.

To address the issue of RGB, RGB++ uses isomorphic binding and Leap bridgeless Cross-Chain Interaction technology. Simply put, isomorphic binding allows users to verify directly using BTC account without running a client, and operate their RGB++ assets on UTXO on-chain. The Leap function enables the free transfer of RGB++ assets between L1 (BTC blockchain) and L2 (CKB blockchain or other UTXO chains). Therefore, based on Smart Contracts, RGB++ provides a new way of asset Cross-Chain Interaction, allowing assets to flow freely in an isomorphic on-chain manner. It is currently the most flexible and scalable solution for asset issuance, while also addressing the pain points of BTC’s native programmability.

CKB RGB++ series solution has received investment and adoption from Western BTC core players such as Bitcoin Magazine. The mining community also strongly supports this solution.

Land quickly, the ambitious integrator of the BTC ecosystem

Looking back at the team behind the RGB++ protocol, it is the well-established project party CKB in the BTC ecosystem. As early as 2018, CKB raised a total of 28 million US dollars from well-known investment institutions such as Polychain Capital, Sequoia China, Wanxiang Block, and Blockchain Capital. The founding team behind it has been deeply involved in the encryption industry for many years. For example, the chief architect Jan Xie has long contributed to the development of the ETH client Ruby-ethereum and pyethereum, and has also collaborated with Ethereum founder Vitalik Buterin in developing Casper Consensus and Sharding technologies.

Years of BTC ecosystem development experience and the support of star capital behind it have made RGB++ land quickly. Since the project started in February 2024, RGB++ was launched on Mainnet in less than 2 months and upgraded to RGB++ Layer in July, quickly realizing the vision of building the BTCFi ecosystem among UTXO-based public chains such as BTC, CKB and Cardano. Since Mainnet was launched, there have been hundreds of ecological projects that have used the protocol for asset issuance.

Not only that, the ‘next generation Lighting Network’ Fiber Network based on CKB is about to go live, which can provide fast, low-cost, and decentralized multi-currency payment and peer-to-peer transaction solutions for RGB++ assets, bringing great imagination space to the application scenarios of RGB++ assets.

CKB has also launched an over-collateralization Stable Coin protocol called Stable++, which uses BTC and CKB as Collateral while minting Stable Coin RUSD. By leveraging the Leap feature of RGB++, Stable++ enables seamless asset transfer within the BTC ecosystem. Just this month, IPN (Interstellar Payment Network) announced the adoption of the RGB++ protocol to build a native Payment Network on BTC Mainnet and launch the Programmability Stable Coin USDI.

Contrast RGB and Taproot, although they have the first-mover advantage, the development speed is slow. Currently, there are still no official developer tools such as SDK, let alone corresponding ecological support and major project settlement.

Fully connect the traffic entrance of the whole ecosystem, MEME or have the function of diverting traffic

The combination of Stable Coin RUSD and USDI with the Lighting Network Fiber Network not only enriches the application scenarios of the RGB++ protocol, but also provides the best traffic entry point in the ecosystem. Based on the CKB’s RGB++ Layer, which relies on its Turing Complete Smart Contract environment and native AA facilities, it provides a superior circulation environment for the Stable Coin in the BTCFi ecosystem. Many Large Investors prefer to hold BTC for the long term rather than trading frequently, so using BTC as collateral to issue Stable Coin can stimulate interaction between Large Investors and BTCFi, improve capital utilization, and reduce dependence on centralized Stable Coin.

At the same time, due to its compatibility with UTXO and Turing completeness, RGB++ can issue MEME on the BTC Mainnet or do projects on other UTXO on-chain, including the largest MEME chain DOGE. For this bull market cycle dominated by MEME, this is nothing less than a hidden ace, which could ignite investors’ attention at any time.

With both topic and strength, the appreciation potential of RGB++ is about to burst forth.

In 2024, Bitcoin will complete its fourth Halving, causing a drop in Miner profitability due to the decrease in Block rewards. For BTC investors, they don’t just want to ‘Hold’, but are frustrated by the lack of more ecological participation options. The demand for BTC value circulation is highlighted, and besides its storage function, BTC holders naturally turn their attention to the BTC ecosystem.

For speculators in the market, the surge of BTC also means an increase in investment costs. As a ‘proximate waterside pavilion,’ BTC Layer2 is more likely to become the next target of fund inflows under the market sentiment. The positive feedback loop formed by the wealth effect will encourage users to continue generating transactions within the BTC native network, leading to network congestion. The overflow of transaction demand will then spill over to related derivative projects and expansion platforms, thus causing the acceptance of BTC Layer2 to once again embrace the earlier inscription craze at the beginning of the year, becoming a hot narrative candidate in this round of the Bull Market.

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And from the trading data, the CKB network remains active. As of now, the daily volume of CKB is 26870 transactions. Compared to the daily average of 20800 transactions in the fourth quarter of 2023, it has risen by nearly 30%. Since the launch of the RGB++ protocol on April 3, 2024, there have been over 89318 transactions and 52759 unique addresses using the protocol.

In March this year, CKB, which transformed from a UTXO-based Layer1 to a hot BTC Layer2, has surged over 300%. Half a year later, as BTC approaches 100,000, will the RGB++ protocol fill the unfulfilled expectations of the inscription and cause an exponential surge?