[TL；DR]: BitVM attempts to implement complex computing and conditional control on Bitcoin networks without the need for modifications to the Bitcoin protocol layer.
BitVM can be seen as building Bitcoin L2, which is more suitable for limited scenarios of heavy chain computing and can be used to improve the payment reliability of lightning networks.
Introduction
Recently, the project leader of ZeroSync released a white paper titled "BitVM: Compute Anything on Bitcoin," attempting to implement complex computing and conditional control on Bitcoin networks without the need for modifications to the Bitcoin protocol layer.
It can be said that BitVM is another attempt to expand the narrative of Bitcoin since Lightning Network and BRC20, which has quickly become a hot topic of discussion in the crypto industry, and some even call it Bitcoin's L2 concept.
Introduction to BitVM
According to the white paper, BitVm is a newly launched computing paradigm that expresses Turing's complete Bitcoin contract. It generally integrates basic elements such as Optimal RollUp, Fraud Proof, Taprot Leaf, and Bitcoin script. Its implementation is similar to OP Rollup on Ethereum, where the contract does not perform calculations on Bitcoin, but undergoes off-chain validation without changing the network consensus role. BitVM White Paper
The reason why BitVM is eye-catching is that it strives to provide more technological possibilities for Bitcoin scalability without the need for upgrades.
Specifically, the concept of BitVM can be understood as a Bitcoin virtual machine, which allows for the expression of Turing complete Bitcoin contracts without changing the consensus rules of the Bitcoin network. It can execute any computable function for offline computation without leaving any traces on the chain.
Unlike Ethereum Virtual Machine (EVM), BitVM does not perform computational processes on the chain, but validates it, which is basically similar to the principle of Optimal Rollup. Although the Bitcoin network itself cannot actually perform computational tasks and only stores data, its high security can become a trusted third party for any Turing complete computing layer.
Simply put, the protocol can be seen as building Bitcoin L2, but there is still a long way to go before implementing complex and efficient smart contract operations like Ethereum L2.
Advantages and Disadvantages of BitVM
At this point, we need to first supplement the background information. Currently, there are two mainstream ideas in the industry compared to implementing Layer2 with Tecoin:
1) Expand the OP Rollup model of Lightning Network, which is not limited to payment, and can perform any contract operation. BitVM follows this approach.
2) Centralize distributed threshold signatures like tBTC on the chain. BEVM is this approach.
Compared to BEVM, BitVM is still in the early stage of concept validation, making it relatively difficult to understand and use. A complete solution has not yet been proposed for some details, such as side chain trust bridging. In addition, it is slightly insufficient in supporting multi-party cooperation, ease of operation, and universality.
There are generally three criticisms from the community regarding the limitations of BitVM.
The interaction object is limited to both parties who understand each other in advance and do a lot of offline preparation work, and cannot support multi-party cooperation like DeFi.
The mode of both parties initiating challenges to the BTC main network offline will be more complex and difficult to operate than the lightning network.
It is not possible to develop a mature universal on-chain Layer2 platform like BEVM in a short period of time, let alone Ethereum Layer2.
For example, Blockchair developer Nikita Zhavoronkov tweeted, comparing BitVM to "running chess in Minecraft" and stating that the BitVM protocol is insufficient to be called Bitcoin EVM.
Tweets criticizing BitVM
Subsequently, anonymous developer Super Testnet responded indirectly to these accusations, believing BitVM itself was focused on the scalability of Bitcoin and improving one of the shortcomings of lightning networks - payment reliability, rather than implementing smart contracts and many Altcoins.
Many community members also believe that BitVM has proposed a potential scalability path that is not yet complete.
Bob Bodily, CEO of BioniqMarket, stated that potential use cases that BitVM can easily implement include decentralized parts of various applications that currently rely on centralized services, including DLC oracle machines, congestion control/coinjoin aggregators, and side-chain quorum.
Future Prospects for BitVM
In summary, BitVM is a brainy and creative new concept that currently cannot achieve more complex and sophisticated smart contract applications like ETH's L2, making it more suitable for limited scenarios of heavy chain computing.
However, in any case, it provides a new attempt to expand Bitcoin. This innovation explores a path that embraces a wider range of use cases and combinations without violating the core protocol of Bitcoin, which itself embodies an open and shared geek spirit.
Bitcoin's original scalability solution
It is worth considering that the launch of BitVM has once again sparked discussions in the encryption community between maintaining minimalism and expanding evolution compared to Bitcoin. BitVM seems to have pointed out a solution that takes into account both, although narrow, but still has positive significance. How it will play a role in Bitcoin networks in the future may be a long-term focus of attention for a community.
In fact, since BTC's first hard fork out of BCH in 2017, there have been significant doubts about the scalability of Bitcoin in the community, but it seems that everyone is unwilling to keep Bitcoin's conservative image as an ancient token. Whether to maintain minimalism to deepen the mission of storing and trading digital currencies, or to add more programmability to enrich the ecosystem use cases of Bitcoin, will be an unsolved issue for a long time.
BitVM has taken a small step in this regard, although many implementation challenges remain. However, while ensuring the decentralization of Bitcoin, achieving some micro innovation to reshape the future form of Bitcoin is highly worthy of investors' attention. Whether BitVM can become a Bitcoin L2 requires further verification over time.
Introduction
Introduction to BitVM
Advantages and Disadvantages of BitVM
Future Prospects for BitVM
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