"UTXO"

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An Unspent Transaction Output (UTXO) refers to the amount of cryptocurrency left after a transaction, which can be consumed at any point in time.

This article introduces the UTXO model in plain language, providing a brief overview of the UTXO model and implementation methods of BTC, Sui, Cardano, Nervos, and Fuel.

This article discusses UTXO isomorphic binding (UIB) technology and believes that this is a major innovation in the BTC ecosystem. The key lies in solving the BTC network expansion problem.

This article will cover more technical topics around the UTxO model and will attempt to compare and contrast the Account Based Model with real examples.

This article introduces the UTXO model in detail. UTXO can not only assist the consensus mechanism and solve the double-spending problem in the blockchain, but also gives blockchain the characteristics of traceability.

This article explores the advantages and disadvantages of UTXO and account system solutions, and how they can respond to the evolution of future needs.

The article discusses Bitcoin Layer2 solutions, which are mainly divided into two categories: sidechain and UTXO+ client verification. Sidechains such as Stacks, RSK, Liquid Network and Lightning Network aim to increase transaction speed and scalability, but face centralization and security challenges. UTXO+ client verification attempts to achieve Layer2 ledger sharing while maintaining the characteristics of Bitcoin, but its technical implementation is difficult. The RGB and RGB++ projects attempt to ensure asset security through client-side verification, while BitVM proposes theoretical concepts to enhance Bitcoin's programmability. The article points out that despite the promising prospects of Bitcoin Layer2, most projects are still in their early stages.

From the formal proposal of RGB++ in February to its implementation in April, it took less than two months, demonstrating the team’s extremely strong engineering capabilities. The launch of UTXO Stack alongside the implementation of RGB++ not only offers more diverse possibilities for asset issuance and gameplay within the BTC ecosystem, but provided project developers with a convenient method of issuance of BTC Layer2 solution based on the UTXO architecture.

The unspent transaction output (UTXO) model explained here is a method used by the Bitcoin network to manage transactions. In Bitcoin, coins are not stored in a wallet in the conventional sense; instead, they are tracked through transaction records on the blockchain. When a transaction is made, the network searches for appropriate UTXOs to use as inputs, and any remaining bitcoins are potentially returned to the wallet as change.

This article introduces a new narrative in the Bitcoin ecosystem for 2024, covering new infrastructure for scaling, anti-VC new assets, and new applications replicating Ethereum's glory. As the core of this narrative, the RGB++ Layer is a Bitcoin extension protocol based on the UTXO model, supporting bridge-free cross-chain and Turing-complete smart contracts. This protocol not only significantly enhances the liquidity and returns of BTC assets but also simplifies the user experience, allowing users to access all applications supporting the RGB++ Layer without multiple wallets. Additionally, the RGB++ Layer integrates various assets within the UTXO ecosystem, including new protocol types such as Runes and BRC20, promoting overall interconnectivity and resource sharing within the Bitcoin ecosystem.

This article explores the programmability and scalability issues of BTC, introducing three projects aimed at enhancing BTC programmability: RGB, RGB++, and Arch Network. These projects use BTC’s UTXO model to manage smart contract states but face challenges related to complexity, user experience, and performance.

Built on the RGB++ protocol, the RGB++ Layer utilizes homomorphic binding and Leap technology to provide a seamless cross-chain interaction experience for native RGB++ assets or inscriptions/runes across UTXO-based blockchains like BTC, CKB, and Cardano without the need for cross-chain bridges. Leveraging CKB's Turing-complete smart contract environment, it establishes the necessary conditions for Bitcoin to achieve complex DeFi functions from asset issuance.

RGB++ is a new asset trading protocol that combines the RGB protocol and a public chain that supports UTXO to achieve globally verifiable asset data storage. It sacrifices privacy but improves ease of use and is suitable for Defi scenarios. Users can directly operate RGB asset containers on UTXO chains such as CKB/Cardano in their Bitcoin accounts, or use the transaction folding function to reduce costs. However, it should be noted that isomorphic binding requires a public chain that supports the UTXO model.

This article explores the use of UTXO (Unspent Transaction Output) and the impact of signature size on transaction fees.

The rise of BTC L2 is an undeniable narrative in the current cryptocurrency market. BTC L2 provides greater performance, programmability, and privacy capabilities than Bitcoin itself. This article introduces two main aspects: off-chain and enhanced capabilities, and, based on the underlying architecture's isomorphism, divides it into the UTXO camp and the EVM camp. It focuses on introducing the features, ecosystem development, and token economic model of the UTXO isomorphic BTC L2 project Nervos Network.