The introduction of intelligent Bitvm contracts has marked a significant milestone in the path for scalability and programming of Bitcoin. Roomed in the original Bitm protocol, Bitlayer’s Finality Bridge introduces the first version of the Live Protocol on Testnet, which is a good starting point to create the promises of the Bitcoin Renaissance or “Season 2”.
Unlike the previous BTC bridges that often required custody on centralized entities or questionable hypotheses of trust, the purpose bridge exploits a mixture of intelligent Bitvm contracts, fraud and evidence of zero knowledge. This combination not only improves security, but also significantly reduces the need for trust in third parties. We are not at the level without confidence that Lightning provides, but this is a million times better than the current Sidechains projects that declare that they are Bitcoin 2S levels (in addition to significantly increasing the design space for Bitcoin applications).
The system operates on a principle in which the funds are blocked safely in the addresses governed by an intelligent Bitvm contract, working pursuant to the premise that at least one participant in the system will act honestly. This configuration intrinsically reduces the requirements of trust but must introduce further complexity that Bitlayer aims to manage with this version of the bridge.
The mechanics of trust
In practical terms, when Bitcoin is blocked in the intelligent Bitvm contract through the purpose bridge, users are issued YBTC, a token that maintains a severe Piolo 1: 1 with Bitcoin. This Piolo is not only a promise but is applied by the logic of the underlying intelligent contract, ensuring that each YBTC represents a real bitcoin and blocked on the main chain (no false metric BTC “restored”). This mechanism allows users to participate in Defi activities such as loans, loans and agriculture within the Bitlayer ecosystem without compromising the security and regulation guarantees provided by Bitcoin.
While some in the community may find these questionable activities, this type of architecture allows users to obtain some guarantees that previously could not hope to obtain with traditional Sidechain projects, with the additional bonus that we do not need to “change” Bitcoin to make It happens (although alliances would make this bridge design completely “minimized by trust, which would actually make it a” real “Bitcoin 2 level). For more details on the different levels of risks associated with Sidechains’ projects, take a look at the evaluation Bitlayer bitcoin levels here.
However, as long as these progress materializes, the Bitlayer Finality Bridge acts as a better realization of the Bitvm 2 paradigm. It is a testimony of what is possible after Dev’s “brain escape” from the centralized Bitcoin chains. Despite all the challenges that Bitvm chains will have to face, I am exceptionally enthusiastic about Bitcoin’s perspective that satisfies its destiny as a settlement chain for all economic activities.
This article is a Take. The opinions expressed are entirely those of the author and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
Guillaume articles in particular can discuss topics or companies that are part of his company’s investment portfolio (Utxo management). The opinions expressed are only his and do not represent the opinions of his employer or his affiliates. Does not receive any financial compensation for these filming. Readers should not consider this content as a financial advice or approval of a particular company or investment. Always do your searches before making financial decisions.