One article to understand the modular BTC Layer2 one-click chain issuance platform UTXO Stack

ABCDE-led UTXO Stack can technically help project developers issue BTC Layer2 based on UTXO architecture with one click, and natively integrates RGB protocol capabilities. In terms of security, Layer 2 security is guaranteed by pledging BTC, CKB and BTC L1 assets.

To put it simply, UTXO Stack is the "OP Stack EigenLayer" of the Bitcoin ecosystem.

1. BTC Layer2 dispute and RGB

Regarding UTXO Stack, it is impossible to use open source technology to open RGB. There are currently more than 20 BTC Layer2 on the market, but most of them are EVM solution. Basically, we are using ETH’s technology stack to solve the expansion problem of BTC. Although the ecosystem can be quickly established in the short term, in the long term, this solution does not have a strong binding relationship with the BTC main chain in terms of security and relies heavily on bridges. Second, it is ideologically based on the technology of ETH. Using a trestle to expand the capacity of BTC is somewhat nondescript. Therefore, some people believe that ETH’s Account model and EVM virtual machine should be used to expand UTXO’s BTC and be as “Bitcoin Native” as possible.

BTC and security have always been related, and BTC L1 is highly related. Solving the security problem of BTC Native is a problem that has failed to achieve ideal results after many years of operation of the electronic network. At the same time, the natural expansion bottleneck of smart contracts is also the main reason for the current slow development of technology. In order to solve the above problems, client verification solutions such as Taproot and RGB also have many problems such as long implementation time and slow technological progress. This is also the main reason why the current EVM expansion solution is so popular.

Nervos utilizes the BTC technology that has been cultivated for many years, combines the natural structural advantages of POW UTXO and the innovative "isomorphic mapping" technology to create a "seamless migration" of the client verification paradigm to CKB. Named RGB. While sacrificing a little privacy, it brings great functionality and flexibility expansion, and has become a strong binding for BTC L1 in terms of security and stability. What’s more, RGB officially landed just a few days ago! This means that this is no longer an expansion narrative that stays at the conceptual or development level, but a product that can actually be developed and implemented.

If the noun is expressed as client verification, isomorphic binding, or too abstract, then the following approximate analogy can be used to understand RGB - a user initiates a transaction on BTC L1 to trigger a transaction on CKB. The user's RGB asset transaction, when the transaction is completed on CKB, will be followed by a Commitment on BTC L1.

You may be wondering - this doesn’t save gas fees, right? Users still have to initiate transactions on BTC L1 and still have to pay the gas fee on BTC. Now they have to add the gas fee on CKB. Does it feel more expensive?

In fact, this is not the case. There are four benefits.

1. RGB as an asset issuance protocol gives BTC L1 the ability to issue new RGB assets (think Merlin’s BRC420)
2. The RGB asset transaction on CKB is completely Turing complete and programmable
3. You can wait for multiple RGB transfers to be completed before sending a Commitment to Bitcoin L1. This is It’s called “transaction folding”. Isn’t it very Rollup-like? It saves a lot of gas fees.
4. Not only RGB assets can be mapped to CKB, Atomic, Rune and other assets with UTXO characteristics It can also be mapped to CKB to perform Turing-complete transactions.

Because the UTXO on Bitcoin L1 can operate or update RGB UTXO, in RGB, CKB becomes the "execution DA of BTC" "layer, BTC L1 has become a true "settlement layer", which is something that currently cannot be achieved by any EVM and non-EVM BTC expansion solutions.

What should you do if you feel that this solution is not fast enough or low enough? After all, transactions on BTC L1 are still inevitable, and CKB’s limit TPS as a POW L1 is only a few hundred. Is there a more flexible and faster expansion solution, like... the Appchain in the ETH ecosystem?

So we have UTXO Stack, the "OP Stack" based on BTC and RGB.

2. UTXO Stack - BTC's OP Stack EigenLayer

If you are familiar with OP Stack and RAAS (Rollup as a Service) protocol stack, it should be very easy for you to understand UTXO with UTXO Stack , you can issue BTC isomorphic UTXO Appchain with one click, and these Appchains have the following characteristics:

1. UTXO model, ultra-high TPS (UTXO is born with parallel processing), ultra-low Gas fee
2. POS mechanism, security is provided by BTC/CKB pledged on BTC (similar to EigenLayer)
3. The asset protocol uses RGB. Because of the existence of isomorphic mapping technology, assets can be in Appchain/CKB/BTC Jump between any one without cross-chain bridge
4. You can reuse the CKB smart contract stack
5. You can reuse the BTC wallet (users have no awareness of the CKB chain)

Finally, we have a Bitcoin-native, UTXO-based chain-issuing infrastructure. This infrastructure also incorporates the Restaking concept proposed by EigenLayer, which not only better empowers BTC and CKB, but also provides Appchain The cold start and security are guaranteed.

It is foreseeable that in the near future, BTC EVM layer2 and BTC UTXO layer2 will start a head-on confrontation at multiple levels of technology, ecology, and even ideology.

RGB took less than two months from its formal proposal in February to its implementation in April, demonstrating the team’s extremely strong engineering capabilities. UTXO Stack was launched at the same time as RGB was launched, which gave Bitcoin Native the possibility of more diverse issuance and gameplay of BTC ecological assets. We believe and work together with UTXO Stack to push the Bitcoin ecosystem into a better and more prosperous future.

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