Bull Market Gem: The Bitcoin Ecosystem's Super Protocol RGB++, Combining Hype and Strength

Written by: Mensh, ChainCatcher

Edited by: Nianqing, ChainCatcher

Since the “Inscriptions Mania” earlier this year, the Bitcoin ecosystem has demonstrated the community's enthusiasm for asset issuance. However, due to Bitcoin's non-Turing-complete characteristics, scaling solutions have not been easy, and multiple approaches are competing for dominance. With Bitcoin nearing the $100,000 mark and surging nearly 50% since November, the long-anticipated bull market is finally here. As trading volume increases and the ecosystem has matured over the past six months, it is now well-prepared to absorb the market’s overflow of capital. Enter RGB++, a Bitcoin ecosystem powerhouse protocol with immense growth potential, combining promising prospects with solid fundamentals.

Dual Breakthroughs: Homomorphic Binding and Leap Bridge-Free Cross-Chain, Enabling Flexible and Efficient Asset Issuance

The idea of issuing assets on Bitcoin has been around for a long time. Back in 2013, Colored Coins marked the first attempt to issue assets on Bitcoin’s mainnet. Since then, several protocols like Runes, Atomicals, Ordinals, RGB, Taproot, and BRC20 have emerged. However, due to Bitcoin’s UTXO-based, non-Turing-complete nature, asset issuance on Bitcoin has always struggled to balance Bitcoin’s native attributes with flexibility.

For instance, Taproot Asset on the Lightning Network achieves high TPS but only supports token issuance, lacking support for complex smart contracts. Ordinals, designed for art, has limited extensibility. Meanwhile, BRC20, inspired by ERC20, stores data in Bitcoin's output scripts but cannot facilitate transfers or minting. Atomicals and Runes have improved token issuance but rely entirely on Bitcoin's base network for transaction processing, making them constrained by Bitcoin’s block size and speed.

RGB offers a scalable smart contract system for Bitcoin and Lightning Network by combining UTXO with client-side validation, addressing programmability challenges. However, RGB's asset issuance has data transparency issues, as users cannot view other assets’ statuses, leading to potential client data silos that hinder DeFi and other applications.

RGB++ resolves these limitations by introducing Homomorphic Binding and Leap Bridge-Free Cross-Chain technology. Homomorphic Binding allows users to interact with their RGB++ assets on UTXO chains directly through Bitcoin accounts without running a client for validation. Leap enables RGB++ assets to move freely between L1 (Bitcoin blockchain) and L2 (e.g., CKB blockchain or other UTXO chains).

This new approach builds on smart contracts to enable native asset cross-chain transfers between homomorphic chains, making it the most flexible and scalable asset issuance solution. Additionally, RGB++ addresses the limitations of Bitcoin's native attributes and programmability. The CKB-based RGB++ solution has attracted investments and adoption from major Bitcoin players like Bitcoin Magazine and garnered strong support from mining communities.

Rapid Adoption: The Bitcoin Ecosystem’s Ambitious Unifier

RGB++ is backed by CKB, a veteran project in the Bitcoin ecosystem. In 2018, CKB secured $28 million in funding from prominent investors such as Polychain Capital, Sequoia China, Wanxiang Blockchain, and Blockchain Capital. The founding team has extensive experience in the crypto industry. Notably, Chief Architect Jan Xie has contributed to Ethereum clients like Ruby-ethereum and pyethereum and collaborated with Vitalik Buterin on Casper consensus and sharding technology.

With years of Bitcoin ecosystem development experience and strong support from prominent backers, RGB++ has achieved rapid deployment. Since its launch in February 2024, RGB++ went live on the mainnet within two months and upgraded to RGB++ Layer in July. This upgrade bridged BTC with CKB, Cardano, and other UTXO-based blockchains, realizing BTCFi ecosystem goals at an engineering level.

To date, hundreds of ecosystem projects have used the protocol for asset issuance. Furthermore, the upcoming Fiber Network, a next-generation Lightning Network solution, will enable fast, low-cost, and decentralized multi-currency payments and P2P transactions for RGB++ assets, vastly expanding their use cases.

Additionally, CKB introduced Stable++, an overcollateralized stablecoin protocol leveraging BTC and CKB as collateral to mint RUSD. With RGB++’s Leap functionality, Stable++ ensures seamless asset transfers within the Bitcoin ecosystem. This month, IPN (Interstellar Payment Network) announced plans to use RGB++ to build a native payment network on Bitcoin’s mainnet and launch programmable stablecoin USDI.

RGB++ stands out with comprehensive ecosystem tools like SDKs and project support, unlike competitors like RGB and Taproot, which lag in development. With meme coins or utility-focused stablecoins like RUSD and USDI integrated into the Fiber Network, RGB++ enhances its application scenarios while serving as a gateway for ecosystem traffic.

Combining Hype and Substance: RGB++ Poised for Significant Growth

Bitcoin's fourth halving in 2024 will reduce block rewards, pressuring miners’ profitability. Bitcoin holders, meanwhile, seek active participation options beyond "HODLing." The need to drive Bitcoin's value flow has become increasingly apparent, with Bitcoin ecosystem engagement emerging as a natural progression.

For speculators, Bitcoin's price surge increases investment costs, making Bitcoin Layer2 platforms attractive for capital flow. As the wealth effect encourages users to engage in Bitcoin transactions, the resulting network congestion will drive spillover demand to derivative projects and scaling platforms like Bitcoin Layer2, reigniting the fervor seen during the “Inscriptions Mania.”

Transaction data supports this trend. CKB’s network remains active, with daily transactions averaging 26,870 — a 30% increase from Q4 2023's average of 20,800. Since RGB++ launched on April 3, 2024, over 89,318 transactions and 52,759 unique addresses have utilized the protocol.

In March 2024, CKB transitioned from a UTXO-based Layer1 to a Bitcoin Layer2, driving its price up by over 300%。 Now, with Bitcoin nearing $100,000, RGB++ meets the unfulfilled expectations left by the “Inscriptions Mania,” setting the stage for exponential growth.

Source: Foresight News

https://foresightnews.pro/article/detail/72599

AIC Team, December 16, 2024