Bitcoin (BTC) developer Robin Linus has introduced a new proposal, titled “BitVM: Compute Anything on Bitcoin,” that outlines a method for enabling arbitrary computation on Bitcoin without requiring a soft fork. This would allow for the implementation of Ethereum-style smart contracts on Bitcoin without disrupting the original protocol.
BitVM works by using a prover-verifier system, similar to Ethereum’s Optimistic Rollups. The prover is responsible for executing the program, while the verifier is responsible for verifying that the program is executed correctly. If the verifier detects any fraud, they can challenge the prover, and the prover will be penalized if they cannot prove that their execution was correct.
Key takeaways
- Bitcoin developer Robin Linus published 'BitVM: Compute Anything on Bitcoin', proposing arbitrary computation on Bitcoin with no soft fork required.
- The design uses a prover-verifier model similar to Ethereum's Optimistic Rollups: the prover executes the program and the verifier can challenge it.
- If the prover cannot demonstrate correct execution when challenged, they are penalised — fraud is caught after the fact rather than prevented up front.
- Potential applications include decentralised exchanges, prediction markets and other contracts that execute automatically when conditions are met.
- Reaction was mixed: Tether CTO Paolo Ardoino was optimistic, while others questioned cost and added complexity in Bitcoin's scripting language.
BitVM has the potential to open up a wide range of new possibilities for Bitcoin applications. For example, it could be used to create decentralized exchanges, prediction markets, and other financial applications. It could also be used to create more complex smart contracts that can automatically execute when certain conditions are met.
What are Bitcoiners saying?
The crypto community has reacted to the BitVM proposal with mixed feelings. Some major stakeholders, such as Tether’s (USDT) CTO Paolo Ardoino, have expressed optimism about the development. However, others have raised concerns about the practicality of BitVM and its potential impact on Bitcoin’s scalability.
One concern is that BitVM could be expensive to use, as it requires the prover to post a large bond. Another concern is that BitVM could add complexity to Bitcoin’s scripting language, which could make it more difficult to develop and maintain Bitcoin applications.
Despite these concerns, the BitVM proposal is a significant development for Bitcoin. It shows that there are still new ways to innovate on the Bitcoin protocol without requiring a soft fork. It remains to be seen whether BitVM will be widely adopted, but it is a promising step towards making Bitcoin more programmable and versatile.
Frequently asked questions
Why does avoiding a soft fork matter?
Changing Bitcoin's consensus rules requires broad agreement and takes years. A design that adds capability without touching the protocol sidesteps that process entirely, which is the main reason BitVM drew attention.
How does the prover-verifier model work?
The prover runs the computation and asserts the result. The verifier does not recompute everything, but can challenge a result it believes is wrong. The prover must then prove correctness or lose their posted bond.
What are the objections?
Cost, since the prover must post a large bond, and complexity, since it expands what Bitcoin's scripting language is used for — potentially making applications harder to build and maintain.
