Recently, with some BTCFi projects in the EVM camp underperforming in the market after their token issuance, discussions about 'Is BTCFi dead?' have resurfaced. This wave of skepticism coincides with a time when Bitcoin prices are gradually warming up, even potentially reaching new historical highs, creating a kind of contrast. Amid the retreat of narratives and the misalignment of market expectations, what is the real possibility for BTCFi?
In this context, Binance News invited the CKB team. As a representative project that has long adhered to the construction of underlying technology and promoted the programmability of Bitcoin through UTXO architecture, how do they view the current development status and path choices of BTCFi? At the same time, as core modules such as RGB++, Fiber Network, and UTXO Stack continue to improve, how does CKB understand its role positioning and long-term strategy in the Bitcoin application layer?
TL,DR:
The development path of CKB is not a deviation from its original intention, but rather always revolves around the vision of a 'Common Knowledge Base,' adhering to the PoW consensus mechanism and UTXO model, aiming to build a decentralized platform centered on state storage that supports multi-asset value carrying. A system architecture composed of RGB++, Fiber Network, and UTXO Stack has been formed, characterized by high security and high programmability.
RISC-V is a completely open-source instruction set architecture without commercial licensing restrictions, allowing CKB to deeply customize the virtual machine according to the specific needs of the blockchain. This openness aligns closely with the spirit of blockchain being open and permissionless. As the Ethereum community also begins to explore the possibility of RISC-V replacing EVM, CKB's early technical route is gradually being validated.
BTCFi should be built on technical capabilities and practical applications. True Bitcoin financial applications should prioritize security, reliability, and verifiability, rather than attracting users through airdrops or short-term incentives. In the view of the CKB team, the real expansion opportunity for Bitcoin does not lie in replicating Ethereum's successful path, but rather in building a truly 'usable space' for Bitcoin based on its inherent security attributes.
In 2025, CKB will focus on expanding the developer ecosystem, implementing Web5 scenarios, and integrating with the Bitcoin ecosystem. Meanwhile, the team has proposed the direction of 'Community Governance 2.0,' continuously enhancing community participation through mechanisms such as CKB Tea Hour technical live broadcasts, developer interviews, and Spark Grants. Additionally, CKB is actively expanding its collaborative network with universities, research institutions, and financial infrastructure platforms.
The Web5 envisioned by CKB is not a simple fusion of Web2 and Web3 but aims to organically combine protocols with openness and verifiability (such as Nostr and AT Protocol) with the ownership assurance mechanisms and programmability of Web3, retaining the familiar user experience while addressing the gaps in data sovereignty and trust foundations.
Architecture Choices and Evolution
In recent years, CKB's development path has undergone multiple stage adjustments: from early explorations of general asset platform directions to attempts in games and application scenarios, and now clearly focusing on the Bitcoin ecosystem and the organic integration of Web2/Web3 within the overall strategy of Web5. These seemingly ever-changing stage goals might suggest directional oscillation to the outside world, or even be interpreted as frequent transformations. However, in the view of the CKB team, this does not deviate from the initial positioning but represents a continuous deepening of the vision of a 'Common Knowledge Base.'
We have always insisted on using the PoW consensus mechanism and the UTXO model, which has been our core principle since our establishment. As our understanding of our technical architecture deepens, the team has gradually realized that this technical foundation has a natural fit with Bitcoin. Therefore, CKB's development trajectory is not driven by industry trends, but by the vision of creating a platform that supports multi-asset value carrying, based on a state storage economic model.
The team also pointed out that as the blockchain industry increasingly emphasizes security, transparency, and development flexibility, the architectural choices made by CKB in its early stages are gradually demonstrating their foresight. For example, the introduction of the RISC-V virtual machine provides great room for modularization, security isolation, and future computing model expansion.
Today, CKB has gradually developed into a universal execution environment that connects Bitcoin with a multi-asset ecosystem. Around this positioning, the team has built three core modules, including the RGB++ protocol, Fiber Network, and UTXO Stack, forming an overall system architecture characterized by high programmability and security. According to the CKB team, these three work in synergy; for example, assets can be issued on the Bitcoin chain through the RGB++ protocol and then migrated to CKB to obtain Turing-complete contract functionality; subsequently, high-speed low-cost payments are achieved through Fiber Network; and the liquidity required for the entire asset circulation is supported by UTXO Stack.
RGB++: Introducing Turing-Complete Programmability to Bitcoin
On February 14, 2024, CKB co-founder Cipher proposed the RGB extension protocol: RGB++. RGB++ is an extension of the RGB protocol aimed at enabling Bitcoin to have programming capabilities similar to Ethereum without compromising its original security.
RGB++ maps Bitcoin transactions to CKB Cells through 'isomorphic binding,' allowing assets based on Bitcoin to possess Turing-complete programmability without sacrificing Bitcoin's security.
However, the enhancement of RGB++'s scalability has also raised user concerns about system complexity and inter-chain consistency. Especially in cases where the Bitcoin main chain may undergo reorganization, ensuring that the state on CKB does not undergo improper rollback becomes a core challenge. To this end, RGB++ has introduced the BTC time lock (BTC_TIME_lock) mechanism to ensure that states will not be easily written before they are ultimately confirmed on the Bitcoin chain, thus reducing the rollback risk brought by chain reorganizations.
However, the improvement of scalability also brings new systemic challenges. Therefore, while ensuring security, the CKB team has also implemented multiple user experience optimizations to address possible increased complexity:
Transaction Chaining Optimization: Ensuring that honest users who do not attempt double spending are not affected during chain reorganizations.
Transaction Folding: Multiple CKB-layer transactions can correspond to the same Bitcoin transaction, improving processing efficiency and alleviating BTC throughput limitations.
Non-interactive Transfers: Users can complete transfers based solely on addresses without prior communication, simplifying the operation process.
Enhanced Client Validation: Users only need to query on-chain data on CKB to confirm the state, without executing local validation logic.
In addition, to further solve the common state contention issue under the UTXO model, RGB++ has also introduced the Intent Cell mechanism. The CKB team explained that under this mechanism, users no longer directly modify the global state; instead, they write their operational intentions into an independent Intent Cell, which is then sorted and executed in batches by aggregate nodes. This design not only effectively alleviates concurrent write conflicts but also makes it possible to implement complex DeFi applications (such as order book exchanges, lending protocols, etc.) within the UTXO architecture.
Fiber Network: Providing a Payment Engine for the Bitcoin Ecosystem
In August 2024, CKB released the Fiber Network light paper, proposing to build a public Lightning Network based on CKB and off-chain channels. As an important supplement to the RGB++ protocol, Fiber Network aims to alleviate the long-standing bottlenecks of throughput and transaction costs in the Bitcoin ecosystem. On one hand, Fiber Network provides a transfer path for RGB++ assets that does not require frequent on-chain settlements; on the other hand, the rich asset types supported by RGB++ further expand the applicable scenarios and asset layer foundations of Fiber Network.
Fiber Network officially launched on the mainnet in February this year. The CKB team stated that the mainnet has introduced several key enhanced features, one of the most important upgrades being the adoption of PLTC (Point Time-Locked Contracts) to replace traditional HTLC. At the same time, the mainnet supports multi-hop routing, allowing users to complete payments through multiple nodes without establishing a direct channel with the recipient. In addition, the mainnet has also enabled Watchtower services to monitor channel statuses in real time, automatically triggering penalty mechanisms upon detecting fraud or submitting expired states to ensure network security.
In terms of ecosystem construction, Fiber Network is gradually promoting cooperation with wallet service providers and application developers. Currently, several integrated development projects have entered substantive stages. The team particularly pointed out that the launch of the stablecoin USDI based on the RGB++ protocol is an 'important milestone event,' introducing a stable value settlement medium to the Lightning Network, filling a long-standing critical gap.
Although Fiber Network is still in the early adoption phase and has not yet achieved a scale comparable to traditional payment networks, the team indicated that a series of positive signals have begun to emerge: developer interest continues to rise, and multiple projects are being built around Fiber's 'multi-asset support + ultra-low fees' characteristics. With these applications gradually landing, the usage frequency and ecosystem participation of Fiber Network are expected to see significant growth in the coming months.
UTXO Stack: Reconstructing Liquidity and User Participation Paths
In addition to RGB++ and Fiber, the CKB ecological project UTXO Stack also released its white paper at the end of 2024, aiming to complete the ecological puzzle. UTXO Stack is built on a hybrid Lightning Network formed by the Lightning Network and Fiber Network, addressing three major issues in the Lightning Network through a decentralized liquidity staking pool (DLSP) mechanism: liquidity shortage, high user participation barriers, and lack of stablecoin support.
Although the architectural design of UTXO Stack is highly forward-looking, it has also raised external concerns about whether it might face 'infrastructure idling,' especially in the current context of differentiated enthusiasm for Bitcoin's second-layer applications. In response, the CKB team stated that they are not simply 'building first and waiting,' but rather choosing to precisely cut in at key nodes where market demand and technical capabilities are about to converge.
The team pointed out that the proliferation of infrastructure is often not a linear development. While the current Bitcoin narrative still focuses on value storage, this balance is quietly changing as the main chain capacity reaches bottlenecks and transaction fees rise. Some early demand signals have already emerged in the market, such as instability in fiat currencies and strong demands for cross-border payments.
Meanwhile, the construction of UTXO Stack is not limited to foundational layer deployment; it is also actively working on the practical application layer. The team cited the release of the USDI stablecoin as an important step toward achieving this goal, filling the long-standing gap of a stable value medium in the Lightning Network. At the same time, UTXO Stack is also exploring AI-based automatic payment systems, achieving micro-payments between machines by combining Fiber Network's near-zero fees.
From a more macro perspective, RGB++, Fiber Network, and UTXO Stack together constitute a unified technology stack for CKB in the Bitcoin ecosystem. The CKB team emphasized that these three closely collaborate in resource scheduling and functional positioning, forming a dynamically evolving closed-loop system.
To this end, the team adopted a 'dynamic matrix model' for overall resource allocation, focusing on the following three core dimensions:
Technical dependency: Prioritize investment in underlying components that form the basis of other modules. For example, RGB++, as the lowest-level protocol, supports the technology of Fiber Network and UTXO Stack, thus receiving focused investment initially. As the RGB++ infrastructure gradually improves, resource allocation will shift toward Fiber Network and will then turn to the focused development of UTXO Stack after its phased objectives are achieved.
Market maturity: The pace of advancement for different modules will be dynamically adjusted based on the evolution of market demand. For example, RGB++ requires extensive education and toolchain improvements before mainstream adoption; Fiber Network responds to the current BTC users' demands for high throughput and low-cost transactions; the liquidity solutions of UTXO Stack will showcase greater value after the payment network's activity increases.
Strategic partnerships: The team also cooperates with external partners to jointly advance ecosystem evolution. In the RGB++ phase, partnerships mainly focus on wallet and asset issuers; the advancement of Fiber Network involves payment service providers and application developers; and in the UTXO Stack phase, with the introduction of USDI, interest from multiple liquidity providers and traditional financial institutions has been attracted.
Firmly choosing RISC-V?
Not long ago, Ethereum co-founder Vitalik Buterin proposed a long-term meaningful proposal in the Ethereum Magicians community, suggesting replacing the Ethereum Virtual Machine (EVM) with the RISC-V instruction set architecture. The proposal pointed out that this change aims to significantly improve the efficiency of the Ethereum execution layer, address one of the main scalability bottlenecks, and greatly enhance the simplicity of the execution layer. Vitalik emphasized that this may be the only viable alternative path at present.
This statement quickly sparked enthusiastic discussions within the community about RISC-V. For those familiar with CKB's technical route, this proposal also signifies another form of 'verification'—as early as 2018, CKB had already decided to adopt RISC-V as the underlying architecture of its virtual machine.
Regarding this choice, the CKB team stated that RISC-V is a completely open-source instruction set architecture without commercial licensing restrictions, allowing CKB to deeply customize the virtual machine according to the specific needs of the blockchain. This openness aligns closely with the spirit of blockchain being open and permissionless. Now, Ethereum is also beginning to explore a similar path, to some extent validating the technical direction that CKB adhered to back then. In the team's view, although the industry's ultimate direction is still unclear, it can be anticipated that open instruction set architectures will play an increasingly critical role in future blockchain infrastructure, with their openness and customizability gradually becoming industry consensus.
However, adopting RISC-V inevitably brings differences in the development experience compared to traditional EVM platforms, a fact that the CKB team has long included in their technical considerations. To lower the development threshold and shorten the learning curve, the team continues to invest in developer toolchains and abstraction layer construction, attempting to provide a more familiar and user-friendly development path while retaining the advantages of the underlying architecture.
For instance, in contract development, CKB offers two main frameworks: one is ckb-script-templates aimed at Rust developers, which supports smart contract development using a mature Rust cross-compilation toolchain; the other is the newly launched ckb-js-vm, allowing developers to write CKB-VM compatible contracts using TypeScript, significantly lowering the entry barrier for web developers.
In terms of application development, the team recommends using CCC SDK (CKBer’s Codebase), while also maintaining multi-language SDKs for Rust, Java, Go, and Ruby.
To further reduce the startup costs for developers, the team has also launched the create-ccc-app scaffolding tool, helping developers quickly build DApps based on familiar technology stacks (like TypeScript, React, Next.js, or Vite), with built-in wallet connections and balance display features. Additionally, through the integrated development toolkit OffCKB, developers have further increased their development efficiency.
Besides tool support, CKB also places great importance on developer education and community ecosystem building. The team plans to launch a series of systematic tutorials aimed at beginners this year, covering everything from basic CKB knowledge to contract writing and the complete DApp development process. At the same time, they will continue to hold online hackathons throughout the year, complemented by official technical workshops and training camps to further assist developers' growth.
At the community level, CKB will continue to promote communication and collaboration among developers through various forms. For example, the 'CKB Tea Hour' series of technical live broadcasts, in-depth developer interviews, and thematic technical interpretations will strengthen the cohesion and participation of the developer community.
BTCFi Strategy: Ecological Construction and Real Challenges
From the perspective of underlying architecture, the Bitcoin ecosystem can roughly be divided into two technical paths: one type centers around the UTXO model, emphasizing inherent security; the other relies on the EVM architecture to achieve functional expansion by reusing existing development toolchains and incentive mechanisms. Compared to the rapid development of the latter, the UTXO route represented by RGB++ has chosen a more restrained development approach. The CKB team stated that this choice is not due to passivity, but rather a respect for Bitcoin culture and a long-term commitment to technical sustainability.
The team also pointed out that behind the choice of the RGB++ path are actually a series of clear principle orientations:
BTCFi should be built on technical capabilities and practical applications. The CKB team pointed out that true Bitcoin financial applications should prioritize security, reliability, and verifiability, rather than attracting users through airdrops or short-term incentives;
Constructed with 'the rhythm of Bitcoin' in mind, rather than chasing the short cycles of DeFi. Just as Bitcoin itself has steadily expanded over fifteen years, RGB++ also emphasizes a long-term evolution path;
Growth should focus on quality and infrastructure. Currently, RGB++ is steadily advancing in dimensions such as developer tool improvement, wallet integration, infrastructure stability, and educational resources.
UTXO and EVM are not in competition; they are parallel paths targeting different security needs and usage scenarios.
In the view of the CKB team, the real expansion opportunity for Bitcoin does not lie in replicating Ethereum's successful path, but rather in building a truly 'usable space' for Bitcoin based on its inherent security attributes.
Of course, choosing a technology-driven development path also means facing a series of real challenges. The team does not shy away from this point, but rather responds directly and solves them gradually. For example, concerning technical complexity, RGB++ employs a client verification mechanism and isomorphically bound structure to avoid using centralized validators or multi-signature bridges, enhancing functionality without sacrificing security.
Regarding development thresholds, due to the significant differences between Bitcoin's UTXO model and script paradigm and account-based smart contract platforms, the team has built tools such as ckb-js-vm and CCC SDK, allowing developers to use familiar languages while retaining the advantages of UTXO technology.
In terms of user education, the team also recognizes that the complexity of BTCFi far exceeds simple transfers. By providing intuitive wallets, clearly structured documentation resources, and education content aimed at different user levels, they help users understand.
With the ongoing improvement of infrastructure and toolchain systems, the CKB ecosystem has initially demonstrated significant construction results. As of now, there are over 400 projects under construction in the RGB++ ecosystem, with a cumulative participation of over 662,000 addresses.
As for the future focus of ecosystem development, the CKB team has also elaborated. The team indicated that they will prioritize projects that can solve real-world problems, especially applications serving high-inflation countries and regions lacking financial services. Stablecoins are therefore seen as the most urgent application need. The recently launched stablecoin USDI embodies this route. USDI is a programmable stablecoin in the Bitcoin ecosystem, filling the gap in payment scenarios. Efforts are actively being made to integrate with payment processors, merchants, remittance services, etc., to support practical usage.
At the same time, the team also views infrastructure construction as another core focus for the current phase. Through UTXO and Fiber Network, CKB is addressing long-standing pain points in the Lightning Network, including insufficient liquidity, high entry barriers, and limitations on multi-asset support.
In addition, CKB is also exploring the connection between identity systems and the creator economy. The team is attempting to integrate DID systems with open protocols such as Nostr and AT Protocol to build a decentralized identity system with verifiability and privacy protection capabilities. With the Lightning Network's small payment capabilities and RGB++'s programmability, CKB is also supporting a number of projects that empower creators, helping them break free from platform intermediaries and achieve direct connections with users.
2025 Strategic Interpretation: Constructing a More User-Friendly, User-Centric Decentralized Ecosystem
Since the strategic transformation in 2024, the CKB team has successively completed multiple key module constructions and iterative updates, with ecosystem development gradually shifting from foundational capability construction to the implementation of application scenarios. To further build a more user-friendly and user-centric decentralized ecosystem, the CKB team has established five key development directions for 2025.
First, the team will increase investment in the developer ecosystem. The team plans to launch a teaching system covering CKB basic knowledge, smart contract development, and the complete dApp building process to lower the entry barrier for beginners. Meanwhile, the toolchain will continue to be optimized, especially with significantly enhanced support for the JavaScript/TypeScript ecosystem. Additionally, the team will continue to host online hackathons and workshops throughout the year, expanding the adaptation range to mainstream languages and development frameworks. As the team stated, they hope to gradually transform the external perception of CKB's high entry barrier into a reality where mainstream developers can quickly get started.
On the other hand, CKB is striving to promote Web5 from concept to practical usable product forms. The team suggests that the focus for 2025 will be on moving from concept to scenarios by developing demonstration applications, integrating open protocols such as Nostr and AT Protocol, and building user-friendly decentralized identity and data interfaces, further expanding the Rock Web5 hackathon series, truly transforming the vision of Web5 into a product form that developers and end users can actually experience.
In strengthening integration with the Bitcoin ecosystem, CKB's strategy is also gradually deepening. This includes not only improving compatibility between RGB++ and emerging Bitcoin standards but also enhancing the liquidity structure of the Lightning Network through UTXO Stack and promoting the integration of USDI in payment and other real-world scenarios. The team stated that they are establishing closer collaborations with infrastructure providers and Bitcoin-native application projects to bridge the gap between the protocol layer and the practical usage layer.
Meanwhile, the community-driven governance mechanism is also transitioning from conception to practice. The team proposed the direction of 'Community Governance 2.0' and is continuously enhancing community participation through mechanisms such as CKB Tea Hour technical live broadcasts, developer interviews, and Spark Grants. The ultimate goal is to gradually free ecosystem governance from dependence on a single operating entity, transitioning to a more self-organizing community co-building structure, thereby allowing the power of innovation to emerge naturally within the community.
In expanding external cooperation, the team is also increasing collaboration with educational institutions, research units, and financial infrastructure platforms by establishing corporate blockchain education programs and involving compliance-friendly institutions in the architecture, promoting CKB's role in broader industry and educational scenarios.
Web5 Vision: Reconstructing Trust and Returning Sovereignty
While advancing ecosystem construction, the CKB team is also pondering a question: how can users truly have control over their identities and data in the future? Web5 is the answer provided by the CKB team.
This concept was first proposed by Jack Dorsey in 2022, aiming to create a 'user sovereign network' that differs from the logic of Web2 platforms and the speculative narrative of Web3. The CKB team expressed agreement with this idea but also clearly stated that their envisioned Web5 is not a simple fusion of Web2 and Web3. Instead, it focuses on organically combining protocols with openness and verifiability (such as Nostr and AT Protocol) with the ownership assurance mechanisms and programmability of Web3, retaining the familiar user experience while addressing the gaps in data sovereignty and trust foundations.
Supporting this model is CKB's Cell architecture. As a native data expression method, the Cell model is inherently suitable for providing flexible expression for states, certificates, and their combinability, laying the foundation for higher levels of user sovereignty. This expressive capability becomes particularly important among marginalized creators and non-sovereign communities in traditional Web2 and mainstream Web3.
Around the Web5 vision, the CKB team has set clear phased goals. In the short term, the focus will be on toolkit and development demonstration applications, along with a series of hackathons; in the medium term, plans include integrating micro-payment capabilities with identity systems to bridge the system barriers between Web2 and Web3; in the long term, the commitment is to build a Web5 application ecosystem covering diverse scenarios such as communication, business, and creation, and to promote the widespread adoption of user sovereign identities in the broader internet space.
In the team's view, Web5 is not a confrontational concept; it neither denies Web3 nor replaces the Bitcoin ecosystem. Instead, it fills real usability gaps on top of the existing system, focusing on solving actual user needs. This aligns with the strategic goals proposed by the team for 2025: 'building a more user-friendly, powerful, and user-centric decentralized ecosystem.'
Web5 is both a path and a vision. The process of reaching this vision is CKB's response to a freer and more trustworthy network order.
Disclaimer
This article includes third-party perspectives and does not constitute financial advice. The content does not represent Binance's position.
