BitVM is a concept presented in a whitepaper released by Robin Linus, a core contributor to ZeroSync, on October 9th. ZeroSync is working on tools for developers to employ zero-knowledge proofs on the Bitcoin network. BitVM's goal is to implement Turing-complete Bitcoin futures without adding complexity to the network for other users. Turing completeness is a computational term for systems capable of computing any possible calculation or program.
Under BitVM, computations are executed off-chain and verified on-chain, similar to Ethereum's optimistic rollup mechanism. In theory, the complexity of computations should have no limits since they occur off-chain, thus eliminating the risk of congesting the network at the expense of other users.
Robin Linus stated on social media, "This makes smart futures on Bitcoin more expressive. In particular, it enables features we thought would require a soft fork to achieve."
The BitVM protocol involves two parties: provers and verifiers. Provers claim that a specific function, given certain inputs, will produce specific outputs. They pre-sign a series of transactions, engaging in a challenge-response game between them. They then deposit funds on-chain into a Bitcoin address, activate the futures, and commence the exchange of off-chain data. Verifiers can obtain the prover's deposit if any incorrect claims are made. This means attackers always stand to lose their deposits.
However, critics quickly pointed out limitations of BitVM. Anonymous Bitcoin writer Shinobi noted the enormous cost of managing off-chain data and added that the protocol only involves provers and verifiers, which is a significant constraint.
While BitVM presents a novel and potentially promising approach to achieving Turing-complete Bitcoin futures, there are still issues to address. The costs of off-chain data management and limitations on the number of participants may hinder its practical application. Nevertheless, this concept opens up new possibilities for smart futures on Bitcoin, encouraging further exploration of more complex computations and programs on blockchain.
As cryptocurrency and blockchain technology continue to evolve, we can expect more innovative solutions to drive the development of Bitcoin and other cryptocurrencies. BitVM, among them, offers us an opportunity to consider the future direction of Bitcoin smart futures. We look forward to witnessing further advancements and breakthroughs in this space.
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