Blockchain developers have recently unveiled a whitepaper for BitVM2, a new and improved version of the Bitcoin sidechain technology. The whitepaper introduces updates to the existing BitVM platform and presents a new bridge design that aims to enhance security and reduce the complexity of on-chain transactions required for dispute resolution.
The announcement of BitVM2 was made on August 15 by Alexei Zamyatin, a co-founder of Build on Bitcoin, a hybrid layer-2 solution powered by Bitcoin and Ethereum. The updated version of BitVM allows anyone to challenge transactions within the system, significantly reducing the number of on-chain transactions needed to resolve disputes to just three.
One of the key features of BitVM2 is its construction mechanism, which does not require any consensus changes to the Bitcoin network. This enables the development of a new class of applications on the blockchain without compromising the network’s security. The whitepaper states, “To guarantee liveness, we only require one active rational operator (while the others can be malicious). Any user can act as challenger, facilitating permissionless verification of the protocol.”
The BitVM Bridge design, described as the most secure BTC bridge to date, utilizes a 1-of-n security model that allows anyone to challenge and prevent unauthorized transactions. This approach contrasts with traditional t-of-n multisig schemes that rely on the assumption of an honest majority.
The whitepaper, authored by Robin Linus, Zamyatin, Lukas Aumayr, Andrea Pelosi, Zeta Avirikioti, and Matteo Maffei, highlights the scalability challenges faced by existing Bitcoin bridges that rely on multi- or threshold signature schemes. These designs often require high capital requirements and have limited adoption in practice.
BitVM was first introduced in October 2023 with the goal of enabling smart contract-like functionalities on Bitcoin without transforming it into Ethereum. The project has sparked initiatives like Bitlayer, which aims to advance layer-2 solutions on the Bitcoin network.
Overall, the release of the BitVM2 whitepaper signifies a significant step forward in the development of Bitcoin sidechain technology, offering new features and enhanced security measures that could potentially reshape the way transactions are conducted on the blockchain.