UTXO Stack Closes Seed Round to Expand Bitcoin Utilities
UTXO Stack, a platform designed to extend the capabilities of Bitcoin through new Layer2 blockchains, has closed a seed funding round co-led by cryptocurrency-native VCs. A B C D E and SNZ Capital.
The seed round also garnered investment from CKB Eco Fund and additional support from a consortium including OKX Ventures, Waterdrip Capital, Matrixport, y2z Ventures, DRK Lab, and UTXO Management, an affiliate of BTC Inc.
developer: Cell Studio UTXO Stack comes at a critical point in Bitcoin’s evolution, transitioning from a simple transactional currency to a complex platform capable of supporting a variety of digital assets such as Ordinals, BRC20, Atomicals, and Runes. However, these advances pose significant challenges for developers. In particular, it is not possible to create smart contracts directly on the Bitcoin blockchain due to its relatively low performance metrics.
The UTXO stack solves these problems by leveraging Bitcoin’s underlying UTXO (Unspent Transaction Output) model.
This approach not only ensures compatibility and seamless integration with the Bitcoin blockchain, but also enables developers to build high-performance parallel chains. These chains take the Bitcoin ecosystem to new heights by promising near-unlimited scalability without compromising network security.
The main feature of the UTXO stack is to integrate the RGB++ protocol. This is an advancement that introduces improved transaction confirmation and state change management through one-time seals and client-side verification.
The protocol’s innovative use of homomorphic binding further enables the seamless transfer of assets issued on Bitcoin, paving the way for a new era of interoperability in the cryptocurrency space.
Introducing Turing-complete smart contract functionality to Bitcoin assets through the UTXO stack and RGB++ protocol will revolutionize the way transactions and asset transfers are performed on the network, eliminating the need for cross-chain bridges and improving operational efficiency. .
The platform’s staking mechanism provides an additional layer of security for assets on the released chain while providing tangible benefits to ecosystem participants. Nodes that stake various assets such as BTC and CKB can earn block rewards, creating a rewarding and inclusive environment for stakeholders.
Cipher, the visionary of the UTXO Stack and the author of the RGB++ protocol, has provided a scalable UTXO Layer2 solution for Bitcoin, highlighting the platform’s potential to enable seamless interoperability across blockchain networks.
Baiyu, a partner at CKB Eco Fund, noted that the UTXO Stack offers outstanding advantages over other layer 2 solutions, especially given the increasing issuance of UTXO assets based on the RGB++ protocol.
Also Read: BEVM Bitcoin Layer2 Closes Seed Round with RockTree Capital, Sathoshi Lab and 20 Others
