In October last year, a friend played with contracts, opening a long position on CKB with a 500k principal at 5x leverage, reaching a peak account balance of 4.3 million. After deducting fees and the portion hedged with spot trading, the return was a solid 850%. What exactly is CKB, and why is its increase so astonishing? Could it potentially be the next hundredfold coin!
Nervos CKB is a public blockchain that is compatible with the Bitcoin ecosystem, utilizing PoW and the UTXO model, dedicated to achieving cross-chain interoperability and scalability on the foundation of Bitcoin. CKB supports the BTCFi ecosystem through a series of innovative technologies, mainly including the following aspects:
1. PoW+UTXO: Ensuring Security and Interoperability
CKB inherits Bitcoin's PoW consensus and UTXO model, ensuring the security of the network while being compatible with the Bitcoin ecosystem, providing a solid foundation for BTCFi applications. It has Layer 2 scalability features, allowing for richer applications of Bitcoin on CKB.
2. RGB++ Protocol: Achieving Bridge-less Cross-Chain and Asset Issuance
With the RGB++ protocol, CKB can seamlessly support cross-chain transfers of Bitcoin assets, avoiding the security risks associated with bridging assets. This protocol allows users to easily create and circulate assets on CKB while ensuring interoperability, bringing more innovative possibilities to BTCFi.
3. JoyID and Lightning Network: Promoting Decentralized Payments
The JoyID wallet, combined with Lightning Network support, provides users with a trustless decentralized payment solution. In scenarios like small payments and cross-border remittances, the combination of the CKB network and Lightning Network offers a more convenient payment experience.
4. Fiber Network: Enhancing Liquidity and Cross-Chain Efficiency
Fiber Network focuses on the circulation of multiple assets and cross-chain interoperability, enhancing the liquidity and scalability of assets within the BTCFi ecosystem, bringing new possibilities to decentralized finance.
