UTXO Stack, a platform designed to expand Bitcoin’s functionalities through a novel Layer2 blockchain, has closed its seed funding round co-led by crypto-native VCs ABCDE and SNZ Capital.
The seed round also garnered investments from CKB Eco Fund and further support from a consortium that includes OKX Ventures, Waterdrip Capital, Matrixport, y2z Ventures, DRK Lab, and UTXO Management, an affiliate of BTC Inc.
Developed by CELL Studio team, UTXO Stack emerges at a critical juncture in the Bitcoin evolution, transitioning from a simple transactional currency to a complex platform capable of supporting a wide array of digital assets such as Ordinals, BRC20, Atomicals, and Runes. However, this evolution brings to light significant challenges for developers, notably the inability to create smart contracts directly on the Bitcoin blockchain, compounded by its relatively lower performance metrics.
UTXO Stack addresses these challenges by harnessing Bitcoin’s native UTXO (Unspent Transaction Output) model.
This approach not only ensures compatibility and seamless integration with the Bitcoin blockchain but also empowers developers to build high-performance parallel chains. These chains promise near-unlimited scalability without compromising the network’s security, thus propelling the Bitcoin ecosystem to new heights.
A key feature of UTXO Stack is the incorporation of the RGB++ protocol, an advancement that introduces enhanced transaction verification and state change management through single-use seals and client-side validation.
The protocol’s innovative use of isomorphic bindings further enables a seamless transfer of assets issued on Bitcoin, paving the way for a new era of interoperability in the cryptocurrency space.
The introduction of Turing-complete smart contract capabilities to Bitcoin assets via UTXO Stack and the RGB++ protocol is poised to revolutionize how transactions and asset transfers are conducted on the network, eliminating the need for cross-chain bridges and enhancing operational efficiency.
The platform’s staking mechanism offers an additional layer of security for assets on the launched chains while providing tangible benefits to the ecosystem’s participants. Nodes staking various assets, including BTC and CKB, can earn block rewards, fostering a rewarding and inclusive environment for stakeholders.
Cipher, the visionary behind UTXO Stack and the author of the RGB++ protocol, highlighted the platform’s potential to offer a scalable UTXO Layer2 solution for Bitcoin, enabling seamless interoperability across blockchain networks.
Baiyu, a Partner at CKB Eco Fund, mentioned the unique advantages UTXO Stack brings to the table over other Layer 2 solutions, especially in light of the growing issuance of UTXO assets based on the RGB++ protocol.
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