What is BitVM?
BitVM introduces a computing paradigm enabling the expression of Turing-complete Bitcoin contracts without altering the network's consensus rules. Instead of executing computations directly on Bitcoin, they are verified, akin to optimistic rollups. Provers assert that a specific function yields particular outputs for given inputs, and if proven false, verifiers can swiftly execute a succinct fraud proof to penalize the prover. This mechanism enables verification of any computable function on Bitcoin. BitVM serves as the cornerstone for connecting BTC to second layers like sidechains, rollups, and zkCoins.
What Benefits does BitVM bring to Bitcoin?
- Strengthened Consensus Framework: Initially, both the prover and verifier compile the program into a comprehensive binary circuit. The prover then commits to this circuit within a Taproot address, where each logic gate in the circuit corresponds to a leaf script. Additionally, they pre-sign a sequence of transactions, facilitating a challenge-response mechanism between the prover and verifier. With all necessary data exchanged, both parties can proceed to make their on-chain deposits to the designated Taproot address, thereby activating the contract. Subsequently, they can engage in off-chain data exchange to instigate state changes in the circuit. In the event of an incorrect claim by the prover, the verifier has the authority to claim their deposit, ensuring that attackers consistently forfeit their deposits.
What are the BitVM's main use cases?
- DeFi
- Gaming
