BitVM2 significantly improves on BitVM 1 by introducing a more accessible challenge system and simplifying transaction verification. With these advancements, BitVM2 paves the way for rollups on Bitcoin, allowing for better scalability without compromising network security.
The Future of Bitcoin Rollups Is Coming to Light Thanks to BitVM2
One of the main challenges for Bitcoin developers is creating scalability solutions on Bitcoin, that is, infrastructures capable of confirming many transactions per second, thus making it possible to truly compete with traditional payment networks and the speed of centralized blockchains like Solana or Ethereum's layer 2.
In October 2023, Robin Linus presented a new paper titled “BitVM: Compute Anything on Bitcoin”, introducing a computational paradigm that allows the creation of so-called “Turing Complete” contracts on Bitcoin, without changing its consensus rules, unlike other solutions.
BitVM is an infrastructure inspired by Ethereum's optimistic rollups, based on a fraud proof system and a “challenge-response” protocol.
⛓️ To delve deeper into the topic – What is a Bitcoin (BTC) layer 2 and which ones are the most promising?
Recently, Robin Linus, along with several other developers, published the white paper for BitVM2, an improved version of BitVM.
Excited to share our work on BitVM bridges: A novel trust-minimized protocol to bridge Bitcoins to second layers.
Huge thanks to @lukas_aumayr, @alexeiZamyatinAndrea Pelosi, @zetavar1and @matteo_maffei for their amazing contributions 🧡https://t.co/5UiiFse5T4 pic.twitter.com/3o4OQJDO5X
— яobin linus (@robin_linus) August 15, 2024
On this occasion, Robin Linus shared a few words with the media CoinDesk:
“Our new bridge design is simpler and more capital efficient. The previous design had liquidity issues, both in terms of the amount and duration that bridge operators had to lock up collateral. Now it requires less capital, which is locked up for a shorter duration.”
Linus and the team behind BitVM2 aren't particularly enthusiastic about applications built on Ethereum, believing they add little value.. However, they acknowledge that serious projects are building promising infrastructure, which they believe is relevant to Bitcoin in order to enable the network to scale.
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What does BitVM2 improve over its 1st version?
BitVM2 also focuses on creating rollups, aiming to process transactions more efficiently while maintaining security guarantees similar to those of the Bitcoin mainnet.
While BitVM was limited to a fixed number of operators to initiate challenges, BitVM2 introduces a challenging permissionless systemwhere anyone can question a suspicious transaction.
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Additionally, the verification process is significantly simplified: While BitVM required up to 70 transactions to verify a proof, BitVM2 reduces this number to just 3.
The developers also introduced the BitVM Bridge, which allows for secure transfer of BTC to rollups, with lower capital requirements and shorter lock-up periods.
BitVM2's innovation brings the network closer to deploying usable and secure rollups while respecting Bitcoin's consensus rules, without requiring changes to its code.
Ledger: the best solution to protect your cryptocurrencies 🔒
Sources: BitVM2, Coindesk
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First attracted by the lure of gain, I am now trapped deep into the rabbit hole. With no way out, I have no choice but to share my knowledge and transmit the passion I have for the blockchain universe. I am also the creator of Adopt a Block, an educational site dedicated to Bitcoin.
Marius Farashi Tasooji
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