UTXO Stack Secures Seed Funding Round to Enhance Bitcoin’s Capabilities
UTXO Stack, a platform aimed at expanding Bitcoin’s functionalities through a Layer2 blockchain, has successfully closed its seed funding round. The round was co-led by prominent crypto-native venture capital firms ABCDE and SNZ Capital.
In addition to the lead investors, the seed round also saw participation from CKB Eco Fund and a consortium of supporters including OKX Ventures, Waterdrip Capital, Matrixport, y2z Ventures, DRK Lab, and UTXO Management, an affiliate of BTC Inc.
Developed by the CELL Studio team, UTXO Stack comes at a crucial time in the evolution of Bitcoin. As the cryptocurrency transitions from a simple transactional currency to a complex platform capable of supporting various digital assets, developers face challenges such as the inability to create smart contracts directly on the Bitcoin blockchain and lower performance metrics.
UTXO Stack addresses these challenges by leveraging Bitcoin’s native UTXO (Unspent Transaction Output) model. This approach ensures compatibility with the Bitcoin blockchain and enables developers to build high-performance parallel chains, offering near-unlimited scalability without compromising security.
One of the key features of UTXO Stack is the integration of the RGB++ protocol, which enhances transaction verification and state change management through single-use seals and client-side validation. The protocol’s use of isomorphic bindings facilitates the seamless transfer of assets issued on Bitcoin, promoting interoperability in the cryptocurrency space.
By introducing Turing-complete smart contract capabilities to Bitcoin assets, UTXO Stack and the RGB++ protocol are set to revolutionize transactions and asset transfers on the network. The platform’s staking mechanism provides an additional layer of security for assets on launched chains, allowing nodes to earn block rewards by staking various assets like BTC and CKB.
Cipher, the visionary behind UTXO Stack and the RGB++ protocol, emphasized 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, highlighted the unique advantages UTXO Stack brings compared to other Layer 2 solutions, especially with the increasing issuance of UTXO assets based on the RGB++ protocol.
The successful seed funding round signifies a promising future for UTXO Stack and its mission to enhance Bitcoin’s capabilities and drive innovation in the cryptocurrency space.
