This article is reproduced from PANews, authored by Weilin, original link:
https://www.panewslab.com/en/articledetails/5prd1j2s.html
After the transformation of Bitcoin L2, the first product of CKB, RGB++, was officially proposed in February and landed in April, taking less than two months. Currently, ecosystem builders can issue RGB++ assets on the Bitcoin mainnet, sparking another wave of asset issuance.
On April 16th, the DEX HueHub Fair Launch platform on RGB++ was officially launched, which is the first asset fair launch platform for RGB++. During this period, the launch of $SEAL and $Otter brought a lot of heat to the market. On April 18th, according to the official announcement, Binance Mining Pool has launched Nervos Network (CKB) mining services. The digital object (DOB) Nervape, which is based on the RGB++ protocol and issued on Bitcoin, will also be launched soon.
RGB++ is an extension protocol based on RGB, which uses one-time seals and client verification technology to manage state changes and transaction verification. It maps Bitcoin UTXOs to Nervos CKB Cells through isomorphic binding, and uses script constraints on the CKB chain and Bitcoin chain to verify the correctness of state calculation and the validity of ownership changes. It brings Turing-complete contract extensions and performance extensions to Bitcoin without the need for cross-chain and without sacrificing security.
Recently, PANews interviewed Cipher, the author of the RGB++ protocol. He stated that RGB++ has already implemented the core functions that the protocol itself needs to cover, and is currently focusing on UTXO Stack, which provides scalability on the basis of programmability provided by RGB++. At the same time, the concept of digital objects (DOBs) will soon be introduced, and there will soon be upper-layer applications to bring DOBs to life. In addition, the real winner in promoting L2 development lies in the asset protocol of L1.
The following is the full text of the interview, slightly edited.
1. PANews: What are the latest technological developments of RGB++ compared to the RGB protocol?#
Cipher: We launched the mainnet in early April, and since then, the surrounding toolchains, wallets, and browsers have been updated very frequently, often with modifications and updates to certain features. Currently, we have implemented the main core functions that the RGB++ protocol needs to cover, including the issuance and transfer of fungible and non-fungible assets, as well as leap, which means jumping from L1 to L2 and from L2 to L1. We have also implemented the SDK, and the wallet will be available at the end of the month. The protocol itself includes a Bitcoin light client on CKB, which has also been implemented.
What is still lacking is examples for developers, such as how to deploy a new contract, what kind of contract to deploy, and how to run it. These still require a lot of developer support work, documentation work, and standardization.
2. PANews: Recently, assets in the RGB++ ecosystem such as $SEAL and $Otter have attracted users' attention and minting. Does this meet the expectations of the CKB team? What assets will be launched in the future?#
Cipher: RGB++ itself is a completely open protocol, and what is more important for us is to bring programmability to the Bitcoin world. We are also working on a financing project called UTXO Stack, which aims to provide scalability on the basis of programmability provided by RGB++.
So many assets have emerged, and they have become very popular, which is somewhat unexpected for us. There are many third-party platforms in the community, such as HueHub, some of which are asset issuance platforms, and some are DEX trading platforms. They will do a lot of operation, promotion, and asset issuance work on top of the asset protocol. I think the advantage of an open protocol is that everyone has their own responsibilities.
3. PANews: Compared to BRC20 assets, RGB++ assets are currently not as numerous. Is this because the threshold for RGB++ is higher?#
Cipher: The threshold is not high. Through the RGB++ Launchpad HueHub, users can issue an asset with just a few clicks, so there is no threshold. So far, the gameplay of RGB++ assets is not much different from BRC20. They are all fair launches, and the transactions are also meme coins.
The real potential of RGB++ lies in its ability to bring programmability to another layer. So we actually value the applications that can be developed on top of RGB++ and how to directly utilize the advantages of RGB++ on Bitcoin L1, how to combine the previously issued assets or newly issued assets to create new gameplay and business.
4. PANews: Can you reveal more about the upcoming AMM, lending, and algorithmic stablecoin projects on RGB++? How are they different from Mingwen?#
Cipher: The fastest one is AMM, which is already half done. Lending and algorithmic stablecoins may take a little longer.
In terms of differences from Mingwen, there are actually many. Traditional Mingwen projects cannot implement smart contracts on L2. If you want to do AMM, lending, or algorithmic stablecoins, you either have to do it in a more centralized way or cross-chain to an L2 like EVM. However, we do it directly through Leap, using the native UTXO method, directly on L2, and can be transferred back at any time. So it is different in terms of user experience and development process.
Of course, the business models are similar. AMM is the AMM everyone is familiar with, lending is lending, and algorithmic stablecoins are algorithmic stablecoins. The only difference is that it is more native, using Bitcoin wallets and gas fees.
5. PANews: How can CKB better help developers interested in RGB++ participate in ecosystem development?#
Cipher: Our Eco Fund is responsible for this. The foundation will provide a large amount of investment to the Eco Fund, which will be used for strategic investments and hackathons. Developer technical support and documentation will also be provided by the Eco Fund.
6. PANews: The RGB++ community is currently very active. How will the project further expand its circle and enhance community and overseas influence?#
Cipher: One aspect is through the technical route. Those who truly understand RGB++ generally recognize our technical route. The security and concept of the entire solution are widely recognized and very elegant. Many of our first-round investors have overseas backgrounds and can introduce us to overseas investors or communities.
Another aspect is through our own community, using meme coins in our community to let the outside world know about us. These are the main strategies. RGB++ or UTXO Stack is a native expansion solution. In this field, we are basically the only one, or at least the top project. I don't think we need to worry too much about breaking through the circle. Bitcoin's market share is increasing, and the consensus is getting stronger. We will also receive more attention.
7. PANews: CKB has expressed the hope of connecting RGB++ with the Lightning Network by the end of the year. The Lightning Network will be the main battlefield for CKB's long-term efforts. Can you briefly introduce the current cooperation situation?#
Cipher: In the past, the Lightning Network could only be used on Bitcoin and could only be paid with BTC, but few people use BTC for daily payments, so the application is not widespread. The products or infrastructure we are going to build this year will support RGB++ assets, and RGB++ can issue any tokens. If the tokens happen to be stablecoins, they can be transmitted in the Lightning Network with high performance. This will truly disrupt the existing payment system, whether it is in terms of technology, popularity, openness, or adaptability, it will be superior to existing payment systems such as WeChat, Alipay, Visa, and PayPal.
This is not something that CKB or a single company can achieve. What we can do is to build the underlying architecture and infrastructure. It also requires asset issuers and payment system operators, and in some places, it may even require payment licenses, and so on. We are solving the most fundamental technical and foundational problems.
8. PANews: Runes protocol in the BTC ecosystem is also very popular. What are the differences and advantages between RGB++ and Runes?#
Cipher: First of all, there is not much competition. Although everyone is a Bitcoin layer 1 asset protocol, the market is still small, and I think everyone should work together to expand the market.
Runes is actually an evolved version of Mingwen. It does not require two operations to engrave an asset. In the past, you may need to commit first and then reveal, requiring two operations to issue an asset. But with Runes, it is directly written into the OP_RETURN, which is very concise. It is also based on UTXO, which coincides with RGB++.
However, I think Runes currently lacks programmability. So if we can add programmability from RGB++, it will be a win-win result. On the one hand, it can bring programmability to Runes, and on the other hand, Runes can bring more attention to us, and so on.
9. PANews: In addition to RGB++, we have also noticed the recent popular digital object creation protocol Spore. What is the latest progress of the Spore protocol?#
Cipher: There are two popular projects based on the Spore protocol, one is Unicorn Box, and the other is Nervape. Currently, in the secondary market, the price of Unicorn Box is around $3000. It uses the Spore DOB-0 protocol and will soon be revealed. However, what will be revealed is not an image but a worldview. People will give it additional meanings and play games, do tasks, and so on on this worldview. In our architecture, we don't call these assets NFTs because NFT only describes some physical attributes.
DOBs are digital objects, they are digital things, they are also objects, and they have a series of attributes that we call traits, which are the core of the connotation of digital objects. When Unicorn Box is revealed, a series of traits will be revealed. Soon, we will have upper-layer applications to give it new meanings, so that this digital object will come to life.
Another popular project is Nervape, which is also a digital object, not an NFT, it is also an object, and it has an image, which is a picture of an ape. This project has been incubating in the CKB community for nearly 5 years, basically since the first day of CKB. This time it is issued on Bitcoin, and all the metadata and image source information are on Bitcoin, using RGB++ as a programmable layer to release it. Its asset protocol is Spore.
We are also connecting with many other projects, including music projects, and you will soon see many valuable DOB assets.
10. PANews: What is your view on the development trend of BTC L2 ecosystem? When do you think the tipping point may occur? What is the key to the development of BTC L2?#
Cipher: The Bitcoin world is actually a wild west world, and no one has absolute authority to say what it should be like, so I think everyone has different views, opinions, and divisions on Bitcoin L2. The ecosystem of Bitcoin L2 is currently in a state of vigorous development, and of course, some voices are louder.
What we call innovation, such as how to make cross-chain bridges more secure, some say they are cross-chain bridges provided by compliant custodians, some say their multisig is random and more secure, some say their multisig scale is 1000, and yours is 3, so I am more secure than you. Everyone has different competitions and positions in this field.
It may be similar to Ethereum in the early days. Ethereum initially talked about L2 and scalability, and there were various solutions, including Plasma and sharding, but later converged to Rollup. Bitcoin is also going through this stage. I think it may gradually converge to one or two specific areas in the second half of the year, which are the truly reliable Bitcoin L2. These days, Bitcoin halved, and 3-6 months after Bitcoin halving is basically the peak.
Another question is, what is the key to the development of Bitcoin L2? The key is the asset protocol of L1. If you have a protocol on L1, it corresponds to your L2. The real winner is the asset protocol of L1.
11. PANews: What are the product plans and roadmap for UTXO Stack?#
Cipher: We will probably do staking and liquidity provision in Q3 this year, allowing users to lock in TVL in advance, providing liquidity on the one hand, and releasing rewards on the other hand. In Q4, we will officially connect the first batch of partners to UTXO Stack, so that our entire network can start running in Q4.
The economic model is also relatively straightforward. Users stake Bitcoin or UTXO tokens to provide security for these UTXO chains on L2. Project parties can easily launch an L2 for UTXO, which is isomorphic to Bitcoin. Assets can flow back and forth between Bitcoin and their own chains, and can be specialized in AMM, games, and so on.
So, UTXO Stack can basically be said to be "OP Stack + EigenLayer" in the Bitcoin world.