Recently, as some BTCFi projects within the EVM camp have underperformed following their token launches, discussions questioning whether「BTCFi is dead」have resurfaced. These doubts have coincided with Bitcoin's price recovery—potentially approaching new all-time highs—creating a striking contrast between market sentiment and narrative momentum. Amid this mismatch, a key question arises: what is the true potential of BTCFi？Against this backdrop, Binance News spoke with the CKB team. As a project long committed to foundational technology and known for advancing Bitcoin programmability through the UTXO model, how does CKB view the current state and strategic direction of BTCFi? Furthermore, with ongoing developments in RGB++, Fiber Network, and UTXO Stack, how does the team understand its role within Bitcoin’s application layer and its long-term vision?Architectural Choices and EvolutionIn recent years, CKB’s development trajectory has undergone several stages of strategic adjustment—ranging from early explorations into a general-purpose asset platform, to experiments in gaming and application use cases, and now toits clear overall strategy focusing on the Bitcoin ecosystem and the organic integration of Web2/Web3 into Web5. While these evolving focal points may appear to some as signs of inconsistency or frequent pivots, the CKB team views them not as deviations from the original vision, but rather as a deepening of its founding mission: to build a Common Knowledge Base.“Our focus on PoW consensus and the UTXO model reflects our commitment to true decentralization and security, core principles that have guided us since our founding,” the team noted. “We've discovered that Bitcoin's ecosystem, with its emphasis on these same principles, represents a natural alignment for our technology. Our work on RGB++, Fiber Network, and UTXO Stack extends Bitcoin's capabilities while preserving its fundamental security guarantees.”The team also emphasized that as the blockchain industry increasingly prioritizes security, transparency, and modular development, CKB’s early architectural choices are proving prescient. For instance, the adoption of the RISC-V virtual machine has laid the groundwork for future modularity, security isolation, and scalable compute layers.Today, CKB has evolved into a universal execution environment connecting Bitcoin with a broader multi-asset ecosystem. To support this role, the team has built out three core modules: the RGB++ protocol, the Fiber Network, and the UTXO Stack—together forming a highly programmable and security-focused system. According to the team, these components work in tandem: A typical asset flow might begin with stablecoins issued via RGB++ on Bitcoin, transferred to CKB for enhanced programmability, then utilized in Fiber Network for instant, low-cost payments, with UTXO Stack providing the necessary liquidity infrastructure to make these transfers seamless.RGB++: Bringing Turing-Complete Programmability to BitcoinOn February 14, 2024, CKB co-founder Cipher introduced RGB++, an extension to the original RGB protocol. The aim of RGB++ is to equip Bitcoin with Ethereum-like programmability without compromising its inherent security model.RGB++ achieves this through a mechanism called homomorphic binding, which maps Bitcoin transactions to CKB Cells. This allows Bitcoin-based assets to gain Turing-complete programmability via CKB, while still anchoring their security in Bitcoin.However, the enhanced scalability of RGB++ also raises concerns about system complexity and cross-chain state consistency. A particularly pressing challenge is how to prevent improper state rollbacks on CKB in the event of a Bitcoin chain reorganization. To address this, RGB++ introduces the BTC_TIME_lock mechanism, which ensures that cross-chain states are not finalized on CKB until the corresponding Bitcoin transaction has received sufficient confirmation—typically around six blocks—thus mitigating rollback risks.While this added security introduces some operational complexity, the CKB team has implemented several optimizations to minimize its impact on user experience:Transaction Chaining Optimization: For honest users, even during Bitcoin reorganizations, as long as they don't attempt double-spending, their RGB++ assets on CKB remain unaffected.Transaction Folding: Multiple CKB transactions can be mapped to a single Bitcoin RGB++ transaction, leveraging CKB's high-performance architecture to compensate for Bitcoin's throughput limitations.Non-interactive Transfers: Unlike traditional RGB implementations that require recipients to provide UTXOs in advance, RGB++ enables non-interactive transfers where only the recipient's address is needed, dramatically simplifying the user flow.Enhanced Client Validation: All RGB++ transactions are synchronized on CKB, allowing users to verify transaction states by simply checking the corresponding transactions on CKB rather than performing complex client-side validation.In addition, to further address common issues of state contention under the UTXO model, RGB++ introduces the Intent Cell mechanism. According to the CKB team, users no longer directly modify global state. Instead, they write their intended actions into independent Intent Cells, which are then collected and ordered by aggregator nodes before being executed in batches.This design not only resolves concurrency conflicts but also makes it feasible to build complex DeFi applications—such as order book exchanges and lending protocols—within a UTXO architecture.Fiber Network: A Payment Engine for the Bitcoin EcosystemIn August 2024, CKB released the Fiber Network litepaper, proposing the construction of a public lightning network based on CKB and off-chain channels. As a key complement to the RGB++ protocol, Fiber Network aims to address the long-standing bottlenecks in the Bitcoin ecosystem related to transaction throughput and fees. On one hand, it offers a settlement-free transfer path for RGB++ assets without requiring frequent on-chain interactions; on the other hand, the diverse asset types supported by RGB++ also expand Fiber Network’s applicability and asset-layer foundation.The Fiber Network mainnet officially launched in February this year. According to the CKB team, the mainnet launch included substantial enhancements and new features aimed at security, scalability, and usability. Notably, Fiber adopted Point Time-Locked Contracts (PTLC) as an advanced replacement for Hash Time-Locked Contracts (HTLC) to provide stronger privacy guarantees and improved cryptographic security.At the same time, the mainnet deployment supports multi-hop routing, which allows users to send payments through multiple nodes without needing a direct channel to the recipient and facilitates smoother cross-chain payments between Fiber Network and Bitcoin's Lightning Network. Furthermore, the watchtower service was operational upon launch. This security mechanism monitors channel states in real-time to enforce channel integrity by automatically penalizing fraudulent or outdated state commitments.On the ecosystem side, Fiber Network is steadily advancing collaborations with wallet providers and application developers. Several integration projects have already entered substantive development. The team particularly highlights the launch of the RGB++-based USDI stablecoin as a “milestone event,” introducing a stable-value settlement medium into the lightning network and addressing a longstanding gap.Although Fiber Network is still in its early adoption phase and has yet to reach the scale of traditional payment networks, the team reports encouraging signs: developer interest is growing steadily, with several teams now building applications leveraging Fiber's unique multi-asset capabilities and near-zero fees. As these applications begin to go live, Fiber Network's usage frequency and ecosystem participation are expected to grow significantly in the coming months.UTXO Stack: Reshaping Liquidity and Participation in Bitcoin EcosystemAdding to the developments of RGB++ and Fiber, the CKB ecosystem project UTXO Stack published its whitepaper in late 2024, a move dedicated to rounding out the ecosystem.Built atop a hybrid lightning network composed of Lightning and Fiber Network channels, UTXO Stack leverages a Decentralized Liquidity Staking Pool (DLSP) mechanism to address three major challenges inherent to traditional lightning networks: liquidity shortages, high user entry barriers, and lack of stablecoin support.Despite UTXO Stack’s forward-looking architecture, some external observers have raised concerns over whether it might result in "idle infrastructure," especially given the current uneven enthusiasm across Bitcoin Layer 2 ecosystems. In response, the CKB team emphasized that their strategy is not to "build it and they will come," but rather to see it as strategic positioning at the intersection of emerging market demands and technological capabilities.The team noted that infrastructure adoption rarely follows a linear path. Bitcoin's primary narrative as a store of value overshadows its payment utility, but this balance is gradually shifting as the base layer reaches capacity constraints and fees increase. Early signals of demand are already visible, particularly in regions with currency instability and cross-border payment needs.Moreover, the construction of UTXO Stack extends beyond base-layer infrastructure; the team is simultaneously advancing real-world applications. A key milestone was the release of USDI, a stablecoin designed to fill the longstanding absence of stable value mediums within the lightning ecosystem. Additionally, UTXO Stack is exploring AI-driven micropayment systems that leverage Fiber Network's near-zero fees for machine-to-machine transactions.From a broader perspective, RGB++, Fiber Network, and UTXO Stack together form a unified technical stack that anchors CKB's strategy for extending Bitcoin’s application layer. The CKB team stresses that these three components are tightly coordinated in both resource allocation and functional design, forming a dynamically evolving closed-loop system.To manage this evolution, CKB applies a "dynamic matrix model" for allocating resources based on three key dimensions:Technical Dependency: Priority is given to foundational components. For instance, RGB++ is the underlying protocol that underpins both Fiber Network and UTXO Stack, and thus received significant early investment. As RGB++ matures, resources have shifted toward Fiber Network.After, will focus on accelerating UTXO Stack development.Market Readiness: Each module advances according to evolving market needs. RGB++ required substantial educational efforts and ecosystem tooling before mainstream adoption could begin. Fiber Network addresses immediate scalability needs for existing Bitcoin users. UTXO Stack's liquidity solutions will become increasingly valuable as network usage grows.Strategic Partnerships: The team actively collaborates with external partners to drive ecosystem progress. For RGB++, efforts focused on wallets and asset issuers; in Fiber Network, partnerships extended to payment providers and application developers; and UTXO Stack has attracted liquidity providers and financial institutions, particularly with the introduction of USDI stablecoin.Why CKB Chose RISC-VRecently, Ethereum co-founder Vitalik Buterin proposed a significant long-term initiative in the Ethereum Magicians forum: replacing the Ethereum Virtual Machine (EVM) with the RISC-V instruction set architecture. According to the proposal, this change aims to greatly enhance execution-layer efficiency, resolve critical scalability bottlenecks, and streamline Ethereum’s execution infrastructure. Vitalik emphasized that RISC-V might be the only viable path forward.His remarks sparked intense discussion within the Ethereum community around RISC-V. For those familiar with CKB’s technical path, however, this proposal serves as a form of validation—CKB had already made the decision to adopt RISC-V as the foundation for its virtual machine back in 2018. At the time, when the EVM dominated the industry, CKB’s move was seen as contrarian.The CKB team explained that RISC-V is a completely open instruction set architecture free from commercial licensing constraints. This openness allows CKB to deeply customize its virtual machine to meet the specific demands of blockchain infrastructure. This aligns well with the blockchain ethos of openness and permissionlessness. Now, as Ethereum explores a similar direction, the CKB team believes the industry's broader shift confirms the soundness of its early choice. While the future of blockchain infrastructure is still unfolding, open instruction sets are gaining recognition as critical components of blockchain infrastructure, with openness and customizability becoming consensus priorities.That said, adopting RISC-V also introduces a different developer experience compared to traditional EVM-based platforms. CKB has long accounted for this by building robust abstractions and developer tools that provide familiar programming paradigms while preserving RISC-V's architectural advantages.For smart contract development, CKB offers two primary frameworks:ckb-script-templates, a Rust-based system that leverages the mature Rust cross-compilation toolchain for contract development;ckb-js-vm, a recently introduced JavaScript-based virtual machine that enables developers to write CKB-compatible contracts in TypeScript, significantly lowering the entry barrier for web developers.For application development, the team recommends using the CCC SDK (CKBer’s Codebase), while also maintaining SDKs for multiple languages including Rust, Java, Go, and Ruby.To further reduce developer onboarding friction, CKB also launched the create-ccc-app scaffolding tool, allowing developers to start with familiar technology stacks like TypeScript, React, Next.js, or Vite with pre-integrated wallet connections and balance display functionality. For comprehensive development environments, team offer OffCKB, an integrated toolkit that simplifies the entire development process from local blockchain setup to smart contract deployment.Beyond tools, CKB places strong emphasis on developer education and community-building. The team plans to release a series of structured tutorials this year, covering everything from CKB fundamentals to smart contract development and full-stack dApp deployment. In parallel, it will host ongoing online hackathons, technical workshops, and bootcamps to help developers grow.On the community side, CKB continues to foster collaboration and knowledge sharing through initiatives like the "CKB Tea Hour" tech livestream series, in-depth developer interviews, and technical deep-dives. These efforts aim to strengthen community cohesion and participation across the ecosystem.BTCFi Strategy: From Architectural Choices to Ecosystem AdvancementFrom a foundational architecture perspective, Bitcoin ecosystem solutions generally follow two main technical paths: one centered on the UTXO model, which emphasizes native security and verifiability; and the other based on the EVM architecture, which extends Bitcoin functionality by leveraging existing development tools and incentive mechanisms. Compared to the rapid expansion of the EVM approach, the UTXO-based path represented by RGB++ follows a more restrained, technically-driven trajectory. According to the CKB team, this choice is not reactive, but rather rooted in respect for Bitcoin’s ethos and a long-term commitment to technical sustainability.The team outlined several core principles underlying RGB++’s strategic direction:BTCFi must be grounded in technological capabilities and real-world utility. The CKB team believes that authentic Bitcoin applications must prioritize security, reliability, and reliability.Development should follow “Bitcoin’s rhythm” rather than chasing DeFi’s short cycles. Just as Bitcoin itself has expanded steadily over fifteen years, RGB++ is similarly focused on long-term, sustainable growth.Growth must prioritize infrastructure and developer experience. Significant effort is being devoted to enhancing developer tooling, wallet integration, infrastructure robustness, and educational resources.UTXO and EVM are not in competition, but complementary approaches. They serve different needs depending on the security models and use cases involved.From CKB’s perspective, Bitcoin’s true path to expansion lies not in copying Ethereum’s blueprint but in building a native “usability layer” rooted in its inherent security.Of course, taking a tech-first route means confronting a range of challenges head-on. The team has not shied away from this and has worked to systematically address them. For example, to deal with technical complexity, RGB++ employs a client-side validation mechanism and homomorphic binding design, avoiding centralized validators or multisig bridges while still achieving significant functionality upgrades.In terms of developer accessibility, the UTXO model and scripting paradigm differ significantly from account-based smart contract platforms. To bridge this gap, the team has built tools such as ckb-js-vm and CCC SDK, enabling developers to work in familiar languages while preserving the benefits of the UTXO structure.On the user education front, the team acknowledges that BTCFi’s complexity goes well beyond simple transfers. They’ve invested in intuitive wallets, clearly structured documentation, and educational content tailored to users at different levels of experience.As CKB continues to refine its infrastructure and tooling, the ecosystem is beginning to show strong signs of progress. To date, more than 400 projects have been built within the RGB++ ecosystem, with over 662,000 addresses having interacted with it.Looking ahead, the CKB team has laid out clear priorities for ecosystem development. They intend to support projects that solve real-world problems—especially those addressing needs in high-inflation economies or regions lacking access to traditional financial services. Stablecoins are seen as one of the most urgent application areas. The recent launch of USDI, a programmable stablecoin within the Bitcoin ecosystem, exemplifies this strategy. USDI is designed to fill a long-standing gap in Bitcoin’s payment landscape and is already being integrated with payment processors, merchants, and remittance services.At the same time, infrastructure development remains a parallel priority. Through UTXO Stack and Fiber Network, CKB is addressing persistent Lightning Network challenges such as liquidity constraints, high onboarding thresholds, and limited multi-asset support.Beyond financial use cases, CKB is also exploring intersections between identity systems and the creator economy. The team is working to integrate decentralized identity (DID) protocols like Nostr and AT Protocol, building verifiable, privacy-respecting identity layers. Combined with RGB++’s programmability and Lightning-powered micropayments, this enables CKB to support a growing number of creator-focused applications—helping individuals bypass platform intermediaries and engage with their audiences directly.2025 Strategic Outlook: Building a More User-Centric and Developer-Friendly Decentralized EcosystemSince its strategic pivot in 2024, the CKB team has completed the development and iteration of several key modules. The project has gradually evolved from focusing on foundational infrastructure to emphasizing real-world application scenarios. To further build a more accessible and user-centered decentralized ecosystem, the team has outlined five core priorities for 2025.First, CKB will significantly expand its support for the developer ecosystem. This includes launching a comprehensive educational framework that covers the fundamentals of CKB, smart contract development, and full-stack dApp construction to lower the onboarding threshold. The team will also continue to enhance its tooling infrastructure, with a particular focus on improving support for the JavaScript/TypeScript ecosystem. In parallel, a series of online hackathons and workshops will be held throughout the year to broaden compatibility with mainstream programming languages and frameworks. As the team puts it, the goal is to “shift the perception of CKB as technically inaccessible to one where mainstream developers can onboard with ease.”In parallel, CKB is working to move Web5 from a conceptual framework into a tangible, usable product layer. In 2025, the team will prioritize transitioning from idea to implementation—by building demo applications, integrating open protocols such as Nostr and AT Protocol, and developing user-friendly decentralized identity and data interfaces. These initiatives will expand the Rock Web5 event series to new cities and online formats.CKB is also deepening its integration with the Bitcoin ecosystem. This includes improving compatibility between RGB++ and emerging Bitcoin standards, enhancing Lightning Network liquidity through the UTXO Stack, and promoting the use of the USDI stablecoin in real-world payment scenarios. The team is actively collaborating with infrastructure providers and native Bitcoin applications to bridge the gap between protocol-level innovation and user adoption.At the governance level, community-driven structures are shifting from vision to execution. The team is advancing toward “Community Governance 2.0,” leveraging mechanisms such as CKB Tea Hour livestreams, developer interviews, and the Spark Grants program to increase grassroots participation. The end goal is to transition ecosystem governance away from reliance on a centralized operator toward a self-organizing community structure—where innovation emerges organically from within.Finally, CKB is strengthening external partnerships with educational institutions, research organizations, and financial infrastructure platforms. These engagements will help bridge the gap between cutting-edge blockchain technology and established institutional requirements.CKB Under the Web5 Vision: Rebuilding Trust and Reclaiming SovereigntyAs CKB advances its ecosystem development, the team is also grappling with a fundamental question: how can users truly regain control over their identity and data in the future? Their answer lies in the vision of Web5.Originally proposed by Jack Dorsey in 2022, Web5 aims to create a “user-sovereign network” that stands apart from the centralized platform dynamics of Web2 and the speculative narratives of Web3. The CKB team aligns with this vision but emphasizes that their conception of Web5 is not a simple fusion of Web2 and Web3. Instead, it focuses on an organic integration where verifiable, transparent Web2 components (like Nostr and AT Protocol) combine with Web3's ownership guarantees and programmability. This allows us to preserve the user experience and network effects of existing systems while adding crucial ownership and verifiability layers.At the heart of this architecture is CKB’s native Cell model. As a flexible data expression layer, the Cell model is inherently suited for representing states, credentials, and composable logic. It provides a foundational structure for higher levels of user sovereignty. This capability becomes especially valuable for marginalized creators and non-sovereign communities often sidelined in both Web2 and mainstream Web3 ecosystems.Besides, CKB focus on empowering what call“small communities" and "small businesses", niche groups and independent creators who are currently underserved by both Web2 platforms and existing Web3 solutions. These groups have genuine needs for user sovereignty and value exchange without the complexity of current blockchain solutions.To bring its Web5 vision to life, CKB has laid out a clear roadmap. In the short term, the focus is on developer toolkits and demonstration applications, alongside a series of hackathons. In the medium term, the team plans to integrate micropayments with decentralized identity systems, bridging the gap between Web2 and Web3 infrastructure. In the long term, CKB aims to foster a Web5 application ecosystem encompassing communication, commerce, and creative industries—ultimately promoting user-sovereign identity across the broader internet.The team emphasizes that Web5 is not a combative idea—it is neither a rejection of Web3 nor a substitute for the Bitcoin ecosystem. Rather, it is a pragmatic evolution that builds upon existing systems to address real usability gaps and meet concrete user needs. This vision is also aligned with CKB’s 2025 strategic goal: to build a more accessible, powerful, and user-centered decentralized ecosystem.Web5 is both a direction and a destination. And the journey toward it, in the eyes of the CKB team, represents their response to the call for a freer, more trustworthy digital future.DisclaimerThis article includes third-party opinions and does not constitute financial advice. The content does not represent Binance's position.
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