Original author: DeMan
Source: PANews
In today's fast-paced cryptocurrency space, Bitcoin Layer 2 solutions are becoming the new darling of the market. In particular, the latest innovation of CKB (Nervos Network), the RGB++ protocol, has attracted a lot of attention. RGB++ not only drove the value of CKB soaring through an innovative asset issuance mechanism earlier this year, but also achieved a staggering monthly increase of more than 300% in just a few months.
Bitcoin's price volatility has provided a stage for multiple Layer 2 projects to showcase their technology, with CKB being particularly prominent. In the popular track of Bitcoin Layer 2, CKB has successfully bound the UTXO of the original chain of Bitcoin to the Cell on the CKB chain with its unique isomorphic binding mechanism and strong background (supported by the famous public chain Nervos), thus leading a new trend in the market.
In addition, the RGB++ protocol was further elaborated on February 22 this year in a Twitter Space hosted by Trustless Labs. At the event, Cipher, the lead author of RGB++ and co-founder of CKB, and Baiyu, the head of the ecosystem, shared their in-depth insights on Bitcoin Layer 2 and the future plans for RGB++ assets and CKB ecosystem construction.
This article will take a closer look at how the RGB++ protocol works, its place in the market, and how it could potentially change the way we understand and leverage Layer 2 solutions.
Solidifying the pain points of Bitcoin scaling, RGB++ achieves significant performance improvements and interoperability advantages through isomorphic binding
In-depth analysis: The logic and challenges behind the selection of the RGB protocol
The original intention of the team to develop the RGB++ protocol stemmed from an in-depth analysis of the competition in the Bitcoin layer 2 solution market. In particular, they focused on the competition for new protocols on the first layer of Bitcoin, which distinguished between two types of protocols: assets that take advantage of UTXO features, and those that do not involve UTXOs. The team chose the first type, specifically protocols with UTXO features such as Atomicals, RGB, and Taproot Assets.
There are many reasons for choosing the RGB protocol as the basis for development. First of all, team member Cipher has a great interest in the RGB protocol and has conducted in-depth research with Mr. A Jian. The RGB protocol is known for its elegant design and the robust scalability it provides for Bitcoin, but despite its advantages, the protocol has not been able to gain mass adoption due to multiple technical and product issues in real-world applications, such as interactive operation issues, data availability issues, interoperability issues, smart contract/script execution environment issues, etc.
The CKB team's Bitcoin layer 2 solution
RGB++ is an asset issuance protocol that belongs to the first layer of Bitcoin, and is at the same level as other first-tier asset issuance protocols such as Ordinals, Runes, and BRC20. Its design and technical advantages reflect the CKB team's long-term accumulation in Bitcoin layer 2 solutions. Compared to traditional RGB protocols, RGB++ avoids the need to exchange transaction history and data through P2P networks, moving all smart components such as virtual machines, smart contracts, etc. directly on-chain, greatly simplifying off-chain logic and speeding up the development process.
The CKB technology platform is used to realize the on-chain processing of the traditional RGB protocol
The core of the RGB++ protocol is to transfer the complex logic that needs to be handled on the client side in the traditional RGB protocol to on-chain processing. This transformation is due to the accumulation of CKB's technology platform over the years, including a standalone P2P network, shared data, virtual machines capable of verifying transactions, and a non-interactive operational experience. Through this isomorphic binding mechanism, RGB++ maps the UTXO of Bitcoin to the Cell of CKB, and uses the script constraints on the CKB chain and the Bitcoin chain to verify the correctness of the state calculation and the validity of the change of ownership.
Top 3 tools to revolutionize trading
The main advantages of RGB++ include: non-interactivity of transactions—RGB++ leverages the characteristics of CKB's data hosting and computing platform to allow two parties to transfer money in an asynchronous, non-interactive way, greatly improving the user experience; transaction folding—improving the performance of low-speed, low-throughput Bitcoin chains by mapping multiple CKB transactions to a single Bitcoin RGB++ transaction; and direct interoperability of BTC assets with assets on the CKB chain— Through the mapping association between UTXO and Cell, the direct interaction between Bitcoin assets and assets on the CKB chain is realized, without the need for a complex cross-chain mechanism.
Analyze the innovative mechanism of RGB++ and look forward to the future development path of Bitcoin Layer 2 technology
The core mechanics and challenges of the RGB protocol
The RGB protocol is a unique P2P asset protocol that operates primarily off-chain, with a computing system similar to a payment channel in some ways. It requires users to run the client and personally verify the transfer behavior related to themselves, a method known as "interactive transfer". Even as the recipient of the asset, the user needs to confirm that the sender's transfer statement is correct before it can take effect. The advantage of this approach is that it enhances privacy protection, because unlike the broad node consensus protocols employed by traditional blockchains such as Bitcoin and Ethereum, the RGB protocol protects the privacy of each transaction through "client-side verification".
However, this design of the RGB protocol also presents significant challenges. The lack of a common consensus process means that different clients may hold inconsistent data, creating "data silos". In addition, users must verify the historical origin of each transaction to confirm the legitimacy of the transaction and the authenticity of the asset, which increases the operational complexity of the user and may limit the widespread adoption of the protocol.
Innovations and advantages of the RGB++ protocol
In contrast, the RGB++ protocol significantly improves the user experience and system efficiency while maintaining the privacy advantages of the original RGB protocol. RGB++ combines Bitcoin's UTXO with CKB's Cell through the "isomorphic binding" mechanism to realize the on-chain management of assets and transaction information. This mechanism allows all relevant validation logic to be executed directly on the CKB chain, rather than only on the user's local client. This not only simplifies the process of verifying assets and transactions by users, but also solves the problem of data inconsistencies through centralized on-chain verification.
Another big advantage of RGB++ is the non-interactive nature of transactions. In the RGB protocol, if Alice wants to transfer money to Bob, she must send the transaction information to Bob for him to check and verify himself. In RGB++, this process is automatically completed by the CKB chain, and users do not need to intervene manually, which greatly simplifies the transaction process and improves efficiency. In addition, RGB++ leverages the computing power of the CKB chain to allow the execution of more complex smart contracts and extended functions, which not only strengthens the functionality of the protocol, but also provides more room for developers to innovate.
To sum up, on the basis of maintaining the privacy advantages of the RGB protocol, RGB++ greatly improves the convenience of transactions and the consistency of data through centralized processing and verification on the chain, and solves the main pain points in the traditional RGB protocol. These improvements not only enhance the user experience, but also provide a solid foundation for the widespread adoption and future growth of RGB++.
RGB++ Comes Out: Can You Stand Out in the Fierce Bitcoin L2 Competition?
Market potential and strategy
Bitcoin Layer 2 solutions (L2) are growing rapidly, with projects such as BounceBit, Merlin Chain, and B^2 accumulating a significant total value locked (TVL). In the face of this explosive growth, how does RGB++ enter this market? RGB++ not only exists as an NFT and FT issuance protocol, but also makes full use of the technical advantages of the CKB chain to provide a seamless transaction experience. While operations on the Bitcoin mainnet may face higher gas fees and slower transaction speeds, the RGB++ protocol optimizes these operations by directly leveraging CKB's Dex for asset trading.
Integration strategy on the CKB layer 2 chain
On the CKB layer 2 chain, RGB++ focuses on the issuance of native assets and the support of cross-chain assets. Bitcoin and Ethereum assets can be securely transferred to CKB through advanced bridging technology, and we work with several large institutions to ensure the security and reliability of transactions. In addition, the assets we launch on CKB follow unified standards, such as the FT standard XUDT and the NFT standard, which have been adopted on the mainnet. We also plan to launch specific trading platforms, such as the Omega Marketplace, to support the issuance and trading of CKB's native inscription assets.
Challenges and uncertainties
Despite its clear advantages in terms of technology and market strategy, RGB++ has not been without its challenges. The development of the original RGB was influenced by a number of factors, such as the need to build on the Lightning Network, but the existing Lightning Network standards do not fully support the RGB protocol. In addition, it takes time for RGB's development tools and virtual machines (AluVMs) to be perfected, which can lead to slow development schedules and missed market cycles.
To sum up, RGB++ not only carries the promise of technological innovation, but also faces multiple challenges in practical applications. As we continue to push the cutting edge of technology and strive to overcome these challenges, will RGB++ be able to carve out a niche in this highly competitive market?