BitVM: Enabling Complex Bitcoin Contracts Off-Chain

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BitVM: Enabling Complex Bitcoin Contracts Off-Chain

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BitVM, also known as Bit Virtual Machine, was introduced in a whitepaper by Robin Linus, a core contributor to ZeroSync. ZeroSync is a project focused on developing tools for developers to utilize zero-knowledge proofs on the Bitcoin network. The main objective of BitVM is to facilitate Turing-complete Bitcoin contracts without adding complexity to the network for other users. Turing completeness refers to a computing system's capability to perform any possible calculation or program.

The proposed protocol involves two parties: the prover and the verifier. The prover asserts a specific function that produces a particular output when given specific inputs. To establish the contract, a sequence of pre-signed transactions is deposited into a Bitcoin address, allowing the prover and verifier to engage in a challenge-response game. The exchange of off-chain data occurs between them, with the verifier having the ability to confiscate the prover's deposit if any incorrect claims are made. This mechanism ensures that attackers lose their deposits.

It is worth noting that the Bitcoin network has previously attempted to implement smart contract functionalities. Bitcoin developers have been working to overcome the network's limitations, caused by its simpler scripting language in comparison to blockchains like Ethereum or Solana.