Dialogue with RGB++ Proposer Cipher: From UTXO Model to the Vision and Practice of BTCFi

On July 22, 2024, we had the honor of inviting Cipher, the co-founder of CKB and proposer of RGB++, for an in-depth discussion on topics such as RGB++, the UTXO model, CKB, and the Bitcoin ecosystem. Cipher shared his professional experience, his understanding of UTXO and RGB++, his views on BTCFi, as well as the design philosophy of CKB. Below are the highlights of the interview:

Cipher's Work Experience

Cipher first entered the scene in 2013 through Bitcoin mining, later experiencing stages such as automated trading and institutional blockchain research. In 2018, he participated in the early construction of CKB and in 2021, he started an independent venture focused on CKB ecosystem projects. In February 2023, he proposed the RGB++ concept, and in April, the RGB++ protocol was launched. Currently, he is advancing the UTXO Stack project to build native functional expansions and a programmable ecosystem for BTCFi.

UTXO Stack and RGB++ Layer

UTXO Stack is similar to OP Stack and can be used for the rapid launch of BTC Layer2. The RGB++ Layer is a product under UTXO Stack, which adds a smart contract execution layer to BTCFi using homomorphic binding. Currently, the focus is on developing the RGB++ Layer ecosystem, and further exploration of Layer2 will be conducted once the popularity of BTCFi increases.

The Combination of RGB++ and Bitcoin

It is mainly reflected in the application scenarios:

1. One-click operation for complex DeFi actions achieved through nested contract scripts.
2. IB0( raises funds through Bitcoin financing ) combined with smart contracts, achieving richer financing rules.
3. Create truly empowered decentralized assets for Bitcoin using RGB++ Layer.

Core Advantages of CKB

1. Adopts the UTXO model, excels at verifying off-chain computation results
2. UTXO naturally supports parallel computation, high efficiency
3. Same as Bitcoin in UTXO, supports isomorphic binding

The UTXO Model DeFi Challenges and Solutions

The UTXO model does face some challenges in DeFi, such as difficulties in state interoperability and transaction conflicts. However, after five years of refinement, mature solutions are already available:

1. Divide the transaction into two steps: user submission of intent and aggregator execution.
2. Support order book mode DEX
3. Optimize Order Book Trading Using PSBT Technology

Choice of Development Language for CKB

Currently, CKB primarily uses Rust and C for development. Advantages of using the RISC-V instruction set:

1. The instruction set is stable and suitable for open-source protocols.
2. Easy to be compatible with emerging ZK facilities

Views on the Bitcoin Ecosystem

1. The Bitcoin ecosystem has multiple forces balancing each other, with no absolute centralized organization.
2. Strong ecological inclusiveness, coexistence of groups with different values.
3. Diversified development paths with strong error correction capability.

CKB is also working to promote the decentralization of decision-making, with the core team maintaining an open attitude.