RGB++ Layer: The Core Hub of BTCFi and the UTXO World

In July 2024, CKB announced the official launch of RGB++ Layer, marking the transition of the previously released RGB++ protocol from theory to a practical engineered product, which will introduce more specific and practical application scenarios. The RGB++ Layer, with its vision of building a BTCFi ecosystem between BTC and other generalized UTXO public chains like CKB and Cardano, quickly became the focus of industry attention.

RGB++ Layer is based on the RGB++ protocol and utilizes homomorphic binding and Leap technology to provide a "bridge-free" full-chain interaction experience for RGB++ native assets or inscriptions/runes across UTXO-based public chains such as BTC, CKB, and Cardano. It also leverages the Turing-complete smart contract environment of CKB to build the necessary conditions for Bitcoin, from asset issuance to achieving complex DeFi functions.

The RGB++ Layer, relying on the complete account abstraction ecosystem of CKB and compatible with Bitcoin accounts and wallets, can create a good experience for Bitcoin users and pave the way for the large-scale adoption of BTCFi.

RGB++ Protocol: Theoretical Foundation

The RGB++ protocol was released in January this year, with the core idea of replacing the "client-side validation" of the RGB protocol with on-chain validation using CKB. Essentially, it uses CKB as a decentralized indexer, assigning tasks such as data storage and asset source verification to CKB, which acts as the validation layer and DA layer for the RGB protocol, addressing the shortcomings of the RGB protocol in terms of user experience and support for DeFi.

RGB++ introduces the concept of isomorphic binding, using Cells on the CKB chain as the data carrier for inscription/runic class assets, and then establishing binding relationships between these Cells and the UTXOs on the Bitcoin/Cardano/Liquid chains, ultimately allowing RGB++ assets to inherit the security of these UTXO public chains to prevent double spending.

Isomorphic Binding and Leap: No-Bridge Cross-Chain Technology

The core of isomorphic binding lies in the fact that CKB's Cell, Cardano's eUTXO, and BTC UTXO all belong to the UTXO model, and CKB is compatible with Bitcoin/Cardano's signature algorithms. This allows for the decomposition and transfer of UTXOs occurring on the latter two chains to be synchronized 1:1 with the Cells on the CKB chain.

The Leap function is based on isomorphic binding technology to "rebind" the UTXO of RGB++ assets. For example, assets can be switched from binding Bitcoin UTXO to UTXO bound on chains like Cardano or Liquid, thereby enabling the transfer of asset control rights.

CKB-VM: Smart Contract Engine

CKB provides CKB-VM for the RGB++ Layer, and programming languages that support the RISC-V virtual machine can be used for contract development on the RGB++ Layer. Developers can use familiar tools and languages to efficiently and securely develop and deploy smart contracts within a unified smart contract framework and execution environment.

Native AA Ecosystem

RGB++ Layer directly reuses the native account abstraction scheme of CKB, aiming for compatibility with important UTXO public chains like BTC and Cardano on both the developer and user sides. Users can use accounts, wallets, or authentication methods such as BTC, Cardano, or even WebAuthn to directly operate assets on the RGB++ Layer.

Summary

RGB++ Layer, as an important infrastructure for various Memecoins such as inscriptions/runes/dye coins, can realize full-chain interactive scenarios. Its smart contract execution environment, built on RiscV, provides a foundation for the complex business logic required by BTCFi. The development of RGB++ Layer will have a significant impact on the BTCFi ecosystem and is worth ongoing attention.