BITVM has received a huge upgrade

The introduction of the Bitvm Smart Contract has become an important milestone in the chance for the scalability and programming of Bitcoin. Originally rooted in the BITVM protocol, Bitlayer ‘S Finality Bridge introduces the first version of Live in Testnet, which is a good starting point for realizing the promise of Bitcoin Renaissance or “Season 2”.

Unlike previous BTC bridges that need to depend on centralized or suspicious trusted assumptions, FINALY Bridge takes advantage of the harmony of Bitvm smart contract, fraud and zero knowledge. This combination not only improves security, but also greatly reduces the need for trust in third parties. We are not at the incredible level provided by Lightning, but it is a million times better than the current side chain design that claims to be the Bitcoin layer 2S (in addition to greatly increasing the design space of the bitcoin application).

This system is managed by the Bitvm Smart Agreement and operates according to the principle that the funds are tightly submerged and functions according to the premise that at least one person of the system will act honestly. This setting essentially reduces trust requirements, but it is necessary to introduce additional complexity that aims to manage the Bitlayer version of the bridge.

Mechanics of trust

In fact, when Bitcoin is submerged in the BITVM smart contract via Finality Bridge, the user is published with YBTC, a token that maintains a strict 1: 1 peg with Bitcoin. This PEG is not only a promise, but also by the basic smart contract logic, and each YBTC represents the actual submerged bitcoin in the main chain (no fake “Restacked” BTC metrics). This mechanism allows users to participate in defect activities such as loans, borrowings and agriculture within the Bitlayer ecosystem, without compromising the security and consensus guarantee provided by Bitcoin.

Some of the community may be unpleasant, but this type of architecture can be guaranteed that this type of architecture cannot be obtained before the traditional side chain design, and an additional bonus that we do not need to “change” to make Bitcoin to create an additional bonus. It is provided. Although the covenant will completely “trust-conflict” to be “true” Bitcoin Layer 2), see Bitlayer’s Bitcoin layer assessment for more information on various levels of risks related to the design of the side chain.

However, until such development is fruited, the Bitlayer Finality Bridge plays the best realization of the Bitvm 2 paradigm. This is evidence of what is possible after the “brain discharge” from the centralized chain to the bitcoin. Despite all the challenges that the Bitvm chain will face, I am very excited about the prospect of fulfilling fate as the best settlement chain for all economic activities.

This article is A Take. The expressed opinion is entirely the author’s opinion and does not necessarily reflect the opinions of the BTC INC or Bitcoin magazine.

Guillaume’s articles can be discussed, especially the topic and company, which is part of the company’s investment portfolio.Lubo management). The expressed view is entirely on its own and does not indicate the opinion of his employer or its affiliates. He does not receive financial compensation for these take. Readers should not consider this content as financial advice, certain companies or investments. Always do your own research before making financial decisions.