Chainfeeds Introduction:
Geek Web3 talked with Cipher, co-founder of CKB and proposer of RGB++, to discuss topics such as past experiences, the unique significance of RGB++ Layer and UTXO model to BTCFi, and some issues about CKB and Bitcoin ecology.
Article Source:
https://mp.weixin.qq.com/s/SyZgWBBq1dPkQx8HOAh60w
Article author:
Geekweb3
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Geek web3: What are your views on Bitcoin Layer 2 and BTCFi, especially the EVM-based Layer 2. My consistent view is that the ceiling of the EVM-based BTC Layer2 is very low. The reason is simple. Using EVM is not to strengthen the Bitcoin ecosystem, but to introduce BTC into other ecosystems. The Layer2 that can influence and empower the Bitcoin ecosystem in the long run must be a more native, UTXO-based Layer2. The so-called native BTC Layer is not attractive because of its orthodoxy, but because this "native" can bring more interesting scenarios to the Bitcoin ecosystem. In addition, whether there are BTC native attributes will also affect the audience. Finally, the UTXO model is "off-chain calculation, on-chain verification", which is particularly suitable for intent-driven transaction scenarios. RGB++ Layer has unique scenarios and development concepts compared to the EVM system. The combination of RGB++Layer and BTC is mainly in various application scenarios. For example, UTXO has a mechanism for nesting contract scripts, which can continuously generate a series of transactions and simplify the user's account transfer process. There is also a clear combination point, which is IB0, that is, financing through Bitcoin. For BTCFi or any Fi, the premise is to have assets and corresponding rich scenarios. If this asset is limited to BTC itself, it can only engage in single scenarios such as remote staking and cross-chain. If you really want the ecosystem to prosper, you need to issue various assets to let a hundred flowers bloom. So I think the biggest combination of RGB++ Layer and Bitcoin is to use the programmability of RGB++Layer to create a decentralized asset class that truly empowers Bitcoin. How to solve some shortcomings of the UTXO model in the construction of the DeFi ecosystem. The special properties of UTXO require that only one person out of 100 people can rewrite its status at the same time, and then there will be a contention problem. This problem is a great challenge for product design, which is why everyone says that the UTXO model is not conducive to DeFi. The design of UTXOSwap is very simple. We divide each transaction into two steps. The first step is for the user to submit his intention to the chain, and the second step is for the Aggregator to aggregate everyone's intentions, and then initiate a transaction to interact with the liquidity pool after merging. The liquidity pool can meet these intentions at one time and generate a final UTXO for the results. Another aspect is that UTXO is very suitable for supporting the order book model. These are all unique DeFi scenarios in the UTXO environment, and they are all quite high-level innovations.
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