UTXO Stack, Pioneering Bitcoin Layer2 Solution, Secures Major Seed Funding
Los Angeles, California, USA, April 4th, 2024, Chainwire
The modular BTC Layer2 blockchain launch platform, UTXO Stack, has successfully completed its seed funding round. This round was co-led by ABCDE and SNZ Capital, strategically invested by CKB Eco Fund, with additional participation from OKX Ventures, Waterdrip Capital, Matrixport, y2z Ventures, DRK Lab and UTXO Management (the investment arm of BTC Inc., publisher of Bitcoin Magazine).
The Bitcoin ecosystem has undergone significant evolution with the issuance of assets such as Ordinals, BRC20, Atomicals, and Runes, marking a transition from its initial role as a straightforward transactional currency to a multifaceted platform supporting diverse digital assets. Despite these advancements, developers face substantial hurdles in leveraging Bitcoin’s full potential. Users cannot create smart contracts directly on the Bitcoin blockchain and often contend with its inherently lower performance. This situation highlights a pressing need for inventive solutions that streamline development processes on Bitcoin, enabling developers to harness its newly expanded functionalities to their fullest extent.
To address these challenges, UTXO Stack has been introduced. It’s built upon Bitcoin’s native UTXO model, ensuring seamless integration and compatibility with the Bitcoin blockchain. This innovative architecture helps developers create high-performance parallel chains, hoping to offer near-unlimited scalability without compromising network security, thus fostering the Bitcoin ecosystem’s growth. With the UTXO stack, BTC Layer2 with the capability to create Turing Complete contracts could be launched at ease, and the launched chain’s security is ensured by the staking of BTC, CKB, and other Bitcoin Layer1 assets.
A significant advancement of the UTXO Stack is the integration of the RGB++ protocol. The RGB++ protocol, a notable advancement in blockchain technology, employs single-use seals combined with client-side validation to efficiently manage state changes and transaction verification. This sophisticated approach ensures enhanced security and integrity in transaction processing. Furthermore, the protocol utilizes isomorphic bindings, a technique that effectively maps Bitcoin UTXOs (Unspent Transaction Outputs) to CKB Cells. This innovative mapping process facilitates the seamless transfer of assets issued on Bitcoin, enabling them to move freely and securely. This feature of RGB++ not only broadens the scope of Bitcoin’s utility but also integrates it more closely with other blockchain platforms, exemplifying a new era of interoperability in the crypto space. This protocol endows assets on BTC with Turing-complete smart contract capabilities. Through its amalgamation with UTXO Stack, complex smart contracts can be executed directly on Bitcoin assets. This integration also facilitates asset transfers without relying on cross-chain bridges, streamlining operations and enhancing the efficiency of transactions on the Bitcoin network.
The staking mechanism within UTXO Stack does more than just safeguard the security of assets issued on chains launched by it; it also offers tangible benefits to every participant in the ecosystem. Nodes can stake a variety of assets, including BTC, CKB, BTC L1 assets, to ensure security of the application-specific chain and earn block rewards. Furthermore, as UTXO Stack app chains can issue their own tokens, those who stake these specific tokens can also receive block rewards. This comprehensive approach not only reinforces network security but also creates a rewarding and inclusive environment for all stakeholders involved.
Cipher, the founder of UTXO Stack and the author of the RGB++ protocol, commented: “If RGB++ addresses the technical implementation challenges of the original RGB protocol by providing Turing-complete smart contract capabilities to BTC L1 assets without the need for cross-chain bridge, through isomorphic binding technology, then UTXO Stack will offer a scalable UTXO Layer2 solution for BTC, enabling seamless interoperability across all blockchains”.
Baiyu, a Partner at CKB Eco Fund, remarked:”With the increasing issuance of UTXO assets based on the RGB++ protocol and other asset issuance protocols on Bitcoin, the realization of UTXO Stack is poised to bring an unprecedented level of development to the BTC ecosystem. The synergy between UTXO Stack and RGB++ will offer incomparable advantages over other Bitcoin Layer 2 solutions”.
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CELL Studio is a blockchain software development company with a dedicated focus on the BTC ecosystem, committed to advancing the Nervos BTCKB initiative. Our mission is to propel the development and prosperity of the Bitcoin and Nervos ecosystem. We strive to achieve this by harnessing potent smart contract capabilities to enable a diverse array of assets on the BTC Layer1 and Layer2.
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