Bitlayer is the first Bitcoin Layer 2 network security equivalent project based on the BitVM solution. It aims to provide a security equivalent to Bitcoin while supporting Turing completeness, enabling it to execute any possible computation or program.
The core goal of Bitlayer is to address the trade-off between security and Turing completeness in Bitcoin Layer 2 technology. Its design is inspired by the BitVM, DLC/LN (Discrete Log Contracts/Lightning Network) technology protocols, and various VMs (including EVM, Ethereum Virtual Machine).
The project’s technical team has abstracted three key tasks from these inspirations:
Its core functionality and operational principles are built around several key technical components to support more complex application scenarios, such as smart contract execution, high-throughput transaction processing, and cross-chain asset transfers.
Based on the BitVM Bitcoin Layer 2 solution, Bitlayer adopts Layered Virtual Machine technology, utilizing Zero-Knowledge Proofs (ZKP) and Optimistic Verification mechanisms to support various complex computations. Additionally, Bitlayer establishes a dual-channel, bidirectional asset-locking bridge through OP_DLC (Optimistic Discreet Log Contracts) and the BitVM bridge, achieving security equivalent to Bitcoin’s first layer.
BitVM is the core component of the Bitlayer project, a Turing-complete virtual machine designed specifically for the Bitcoin ecosystem. Its primary goal is to extend Bitcoin’s functionality and programmability without compromising the inherent security and decentralization characteristics of the Bitcoin network. Here is a detailed introduction to BitVM:
The design goal of BitVM is to overcome certain limitations of the native Bitcoin protocol, particularly in the areas of smart contracts and complex computational capabilities. While Bitcoin is one of the most secure blockchains, it does not inherently support complex smart contracts, which limits its utility in certain applications such as decentralized finance (DeFi).
BitVM is Turing-complete, meaning it can execute arbitrarily complex computational tasks given sufficient resources. This feature allows developers to design and operate various complex decentralized applications (DApps) on the Bitcoin network, such as automated trading strategies, financial derivatives, and smart contracts.
In summary, BitVM is a key technology of the Bitlayer project. By providing a secure, scalable, and feature-rich virtual machine, BitVM enables Bitcoin to better meet current and future blockchain application demands. It not only addresses Bitcoin’s shortcomings in smart contracts and high throughput applications but also maintains its security and decentralized nature as a top-tier cryptocurrency.
Bitlayer’s Layered Virtual Machine (LVM) is an innovative architectural design aimed at enhancing the computational capabilities and programmability of the Bitcoin network while maintaining its core security and decentralization features. This technology enables the execution of complex smart contracts and other applications on Bitcoin’s Layer 2 without excessively burdening the main chain. Here’s a detailed explanation of the key components and working principles of this technology.
The core idea of a layered virtual machine is to separate computation and verification. This layered architecture allows for extensive computational processing on the second layer while only submitting necessary verification information to the Bitcoin main chain. This approach significantly reduces the burden on the main chain.
Layered Virtual Machine (LVM) technology is a crucial innovation that Bitlayer employs to enhance the Bitcoin network’s capability for complex smart contracts without compromising security and decentralization. This innovative framework opens up new possibilities for extending Bitcoin’s functionality, enabling it to better serve the diverse needs of modern blockchain applications.
Zero-Knowledge Proofs (ZKP) are an encryption technology that allows one party (the prover) to prove to another party (the verifier) that a statement is true without revealing any information other than the truth of the statement itself. This technology ensures data integrity and security while preserving privacy. In the Bitlayer project, zero-knowledge proof technology is used to enhance security, improve efficiency, and protect user privacy.
The core concept of zero-knowledge proofs is the ability to prove the correctness of certain information without revealing any specifics about that information. For instance, a prover can demonstrate knowledge of a password without disclosing the password itself. This is achieved through a series of mathematical challenges and responses, ensuring that only someone possessing the correct information can successfully provide the proof.
In Bitlayer, zero-knowledge proofs are used in the following key aspects:
While zero-knowledge proofs offer many advantages, they also face some technical challenges, including:
In the Bitlayer project, zero-knowledge proof (ZKP) technology plays a critical role as it enables the Bitcoin Layer 2 network to maintain core Bitcoin security attributes while also offering improved efficiency and enhanced privacy protection. By selectively using ZKP where necessary, Bitlayer can provide a blockchain platform that is both secure and efficient, supporting a wide range of complex and sensitive blockchain applications.
Optimistic Verification is a technology used in Layer 2 solutions for blockchain, particularly effective in enhancing the scalability of the main chain and reducing its load. This approach assumes participants behave honestly and allows transactions and contracts to be executed without immediate validation. Only in cases of dispute is necessary verification performed. This method effectively reduces the number of transactions on the main chain, thereby improving overall network performance and scalability. In the Bitlayer project, Optimistic Verification is a key technology for achieving high throughput and low latency.
The fundamental principle of Optimistic Verification is that most transactions or contract executions are assumed to be correct, and validation processes are triggered only when necessary. This approach reduces the need for on-chain operations, thereby lowering transaction fees and latency while enhancing the overall scalability of the system.
In the Bitlayer project, optimistic verification enhances transaction processing speed and system scalability while maintaining core Bitcoin security attributes. Here are several key applications of optimistic verification in Bitlayer:
While optimistic verification provides significant performance advantages, it also introduces challenges, particularly concerning security and data integrity. Relying on challenge mechanisms to ensure transaction correctness requires careful system design to prevent fraud and ensure timely and effective responses from network participants to any potential challenges. Additionally, meticulous consideration is needed for designing the duration of challenge windows and dispute resolution mechanisms to ensure fairness and efficiency in the system.
Overall, optimistic verification provides an effective scalability path for second-layer solutions like Bitlayer. By reducing the need for on-chain operations while ensuring security, it greatly enhances the scalability and cost-effectiveness of blockchain systems.
The OP_DLC Bridge (Optimistic Discreet Log Contracts Bridge) is a crucial technology within the Bitlayer project designed to facilitate cross-chain asset transfers. This technology combines Discreet Log Contracts (DLC) with optimistic protocols to provide a secure, reliable, and decentralized method for assets to move between the Bitcoin main chain and the Bitlayer second layer.
Discreet Log Contracts (DLC) are a form of smart contract based on Bitcoin. They enable the execution of contracts under predefined conditions without relying on external oracles. DLC implementations primarily utilize Bitcoin scripting and multisignature technology to ensure contract execution is on-chain, transparent, and tamper-proof.
In summary, the OP_DLC Bridge is the core technology of Bitlayer for securely and efficiently facilitating the circulation of assets between the Bitcoin main chain and its Layer 2 network. It combines the security of DLC with the efficiency of optimistic protocols, providing users with a powerful tool for cross-chain asset management.
Bitlayer has announced that following the launch of its mainnet V1, it will introduce its first official NFT — the Bitlayer Lucky Helmet. This NFT is not just an image but a symbol representing the identity and contributions of Bitlayer community builders. A total of 5000 Lucky Helmets will be distributed via whitelist to active participants in the Bitcoin and Bitlayer communities.
The holders of the Lucky Helmet will enjoy a range of practical rights and benefits, including priority governance rights, potential token airdrops, official event points, and multiplier advantages in ecosystem projects. Additionally, the Lucky Helmet adopts the Ordinals issuance paradigm, optimizing circulation efficiency and minimizing transaction costs.
Ways to acquire the Lucky Helmet include priority passes and public whitelistings. These are aimed at the earliest and most active participants within the Bitlayer ecosystem. Additionally, a limited whitelist can be obtained through the Bitlayer x OKX Wallet event held in cooperation with OKX Wallet. These NFTs will be minted within specified timeframes and require completion of the minting process within the designated period on the official website.
Bitlayer was co-founded by Charlie Yechuan Hu and Kevin He.
Charlie Yechuan Hu is a co-founder of Bitlayer. Previously, he served as a managing partner at LucidBlue Ventures and has been involved in projects such as Polygon, Tezos, and Polkadot. He graduated from Nehru College of Commerce and Beijing Foreign Studies University. Charlie Hu played a crucial role in expanding the influence of Tezos and Polygon, particularly as the Head of Business Development for Tezos China and overseeing Polygon’s operations in China and Southeast Asia.
Kevin He is also a co-founder of Bitlayer. His previous roles include Vice President of Technology at Xfire Technology, Senior Technical Director at Huobi, and Chief Scientist at YOUChain. He holds a master’s degree in Software Engineering from Peking University.
As of now, Bitlayer has successfully completed a $5 million seed financing round. This round was led by Framework Ventures and ABCDE Capital, with participation from notable investment firms such as StarkWare, OKX Ventures, Alliance DAO, UTXO Management, and Asymmetric Capital. Additionally, the project attracted several prominent angel investors including Ryan Selkis, CEO of Messari, Dan McArdle, co-founder of Messari, and Dan Held, founder of Asymmetric Capital.
In addition to the seed financing, Bitlayer announced a $50 million developer airdrop initiative, which has attracted over 500 project teams to participate. These projects span various categories including infrastructure, DeFi, NFTs, SocialFi, cross-chain bridges, among others. Within 48 hours of its launch, the initiative received over 300,000 votes from users supporting their preferred projects. Registration for this initiative remains open until April 29, with the official competition expected to commence in mid-May. Participating projects will compete for a share of the $50 million token airdrop rewards and grants through ranking on leaderboards and accelerator programs.
Bitlayer is positioned within the domain of second-layer solutions for Bitcoin, focusing on expanding Bitcoin’s functionality, increasing its processing speed, and enhancing programmability while maintaining its security and decentralized nature. This sector is crucial for addressing scalability and flexibility issues within the Bitcoin network, enabling support for more complex financial and commercial applications.
The advantages of the Bitlayer project are mainly reflected in its unique technological innovation and strong ecosystem cooperation:
Despite Bitlayer demonstrating excellence in technological innovation and ecosystem development, like many tech projects, it also faces potential challenges and drawbacks. These disadvantages could impact its widespread adoption and ultimate success. Here are some major disadvantages Bitlayer may face:
Bitlayer’s development roadmap shows its major milestones over the next few releases:
Overall, Bitlayer’s plan involves a series of upgrades aimed at significantly increasing the number of ecosystem projects on its platform, enhancing the total locked value of assets, increasing daily transaction processing volume, and promoting integration and verification with BitVM at the first layer chain (L1). These goals demonstrate Bitlayer’s commitment to building a robust network that offers highly scalable solutions to support the growing demands of blockchain applications.
Bitlayer is advancing towards becoming a revolutionary Bitcoin Layer 2 solution with its innovative BitVM technology and layered virtual machine architecture. It aims to significantly enhance the scalability and smart contract capabilities of the Bitcoin network. As it progresses through its development roadmap, Bitlayer is committed to expanding its ecosystem to encompass thousands of projects, accumulating billions of dollars in total locked value, and processing millions of daily transactions. These efforts are expected to greatly enhance the practicality and market penetration of Bitcoin. Through continuous iteration from Mainnet-V1 to Mainnet-V3, Bitlayer demonstrates its ambition to become a hub of economic activity and innovation within the Bitcoin ecosystem.
This article is reproduced from [链茶馆], original title “Bitlayer: Bitcoin Layer of BitVM solution 2”, the copyright belongs to the original author [ 鲍勃葱 ], if you have any objection to the reprint, please contact Gate Learn Team, the team will handle it as soon as possible according to relevant procedures.
Disclaimer: The views and opinions expressed in this article represent only the author’s personal views and do not constitute any investment advice.
Other language versions of the article are translated by the Gate Learn team, not mentioned in Gate.io, the translated article may not be reproduced, distributed or plagiarized.
Bitlayer is the first Bitcoin Layer 2 network security equivalent project based on the BitVM solution. It aims to provide a security equivalent to Bitcoin while supporting Turing completeness, enabling it to execute any possible computation or program.
The core goal of Bitlayer is to address the trade-off between security and Turing completeness in Bitcoin Layer 2 technology. Its design is inspired by the BitVM, DLC/LN (Discrete Log Contracts/Lightning Network) technology protocols, and various VMs (including EVM, Ethereum Virtual Machine).
The project’s technical team has abstracted three key tasks from these inspirations:
Its core functionality and operational principles are built around several key technical components to support more complex application scenarios, such as smart contract execution, high-throughput transaction processing, and cross-chain asset transfers.
Based on the BitVM Bitcoin Layer 2 solution, Bitlayer adopts Layered Virtual Machine technology, utilizing Zero-Knowledge Proofs (ZKP) and Optimistic Verification mechanisms to support various complex computations. Additionally, Bitlayer establishes a dual-channel, bidirectional asset-locking bridge through OP_DLC (Optimistic Discreet Log Contracts) and the BitVM bridge, achieving security equivalent to Bitcoin’s first layer.
BitVM is the core component of the Bitlayer project, a Turing-complete virtual machine designed specifically for the Bitcoin ecosystem. Its primary goal is to extend Bitcoin’s functionality and programmability without compromising the inherent security and decentralization characteristics of the Bitcoin network. Here is a detailed introduction to BitVM:
The design goal of BitVM is to overcome certain limitations of the native Bitcoin protocol, particularly in the areas of smart contracts and complex computational capabilities. While Bitcoin is one of the most secure blockchains, it does not inherently support complex smart contracts, which limits its utility in certain applications such as decentralized finance (DeFi).
BitVM is Turing-complete, meaning it can execute arbitrarily complex computational tasks given sufficient resources. This feature allows developers to design and operate various complex decentralized applications (DApps) on the Bitcoin network, such as automated trading strategies, financial derivatives, and smart contracts.
In summary, BitVM is a key technology of the Bitlayer project. By providing a secure, scalable, and feature-rich virtual machine, BitVM enables Bitcoin to better meet current and future blockchain application demands. It not only addresses Bitcoin’s shortcomings in smart contracts and high throughput applications but also maintains its security and decentralized nature as a top-tier cryptocurrency.
Bitlayer’s Layered Virtual Machine (LVM) is an innovative architectural design aimed at enhancing the computational capabilities and programmability of the Bitcoin network while maintaining its core security and decentralization features. This technology enables the execution of complex smart contracts and other applications on Bitcoin’s Layer 2 without excessively burdening the main chain. Here’s a detailed explanation of the key components and working principles of this technology.
The core idea of a layered virtual machine is to separate computation and verification. This layered architecture allows for extensive computational processing on the second layer while only submitting necessary verification information to the Bitcoin main chain. This approach significantly reduces the burden on the main chain.
Layered Virtual Machine (LVM) technology is a crucial innovation that Bitlayer employs to enhance the Bitcoin network’s capability for complex smart contracts without compromising security and decentralization. This innovative framework opens up new possibilities for extending Bitcoin’s functionality, enabling it to better serve the diverse needs of modern blockchain applications.
Zero-Knowledge Proofs (ZKP) are an encryption technology that allows one party (the prover) to prove to another party (the verifier) that a statement is true without revealing any information other than the truth of the statement itself. This technology ensures data integrity and security while preserving privacy. In the Bitlayer project, zero-knowledge proof technology is used to enhance security, improve efficiency, and protect user privacy.
The core concept of zero-knowledge proofs is the ability to prove the correctness of certain information without revealing any specifics about that information. For instance, a prover can demonstrate knowledge of a password without disclosing the password itself. This is achieved through a series of mathematical challenges and responses, ensuring that only someone possessing the correct information can successfully provide the proof.
In Bitlayer, zero-knowledge proofs are used in the following key aspects:
While zero-knowledge proofs offer many advantages, they also face some technical challenges, including:
In the Bitlayer project, zero-knowledge proof (ZKP) technology plays a critical role as it enables the Bitcoin Layer 2 network to maintain core Bitcoin security attributes while also offering improved efficiency and enhanced privacy protection. By selectively using ZKP where necessary, Bitlayer can provide a blockchain platform that is both secure and efficient, supporting a wide range of complex and sensitive blockchain applications.
Optimistic Verification is a technology used in Layer 2 solutions for blockchain, particularly effective in enhancing the scalability of the main chain and reducing its load. This approach assumes participants behave honestly and allows transactions and contracts to be executed without immediate validation. Only in cases of dispute is necessary verification performed. This method effectively reduces the number of transactions on the main chain, thereby improving overall network performance and scalability. In the Bitlayer project, Optimistic Verification is a key technology for achieving high throughput and low latency.
The fundamental principle of Optimistic Verification is that most transactions or contract executions are assumed to be correct, and validation processes are triggered only when necessary. This approach reduces the need for on-chain operations, thereby lowering transaction fees and latency while enhancing the overall scalability of the system.
In the Bitlayer project, optimistic verification enhances transaction processing speed and system scalability while maintaining core Bitcoin security attributes. Here are several key applications of optimistic verification in Bitlayer:
While optimistic verification provides significant performance advantages, it also introduces challenges, particularly concerning security and data integrity. Relying on challenge mechanisms to ensure transaction correctness requires careful system design to prevent fraud and ensure timely and effective responses from network participants to any potential challenges. Additionally, meticulous consideration is needed for designing the duration of challenge windows and dispute resolution mechanisms to ensure fairness and efficiency in the system.
Overall, optimistic verification provides an effective scalability path for second-layer solutions like Bitlayer. By reducing the need for on-chain operations while ensuring security, it greatly enhances the scalability and cost-effectiveness of blockchain systems.
The OP_DLC Bridge (Optimistic Discreet Log Contracts Bridge) is a crucial technology within the Bitlayer project designed to facilitate cross-chain asset transfers. This technology combines Discreet Log Contracts (DLC) with optimistic protocols to provide a secure, reliable, and decentralized method for assets to move between the Bitcoin main chain and the Bitlayer second layer.
Discreet Log Contracts (DLC) are a form of smart contract based on Bitcoin. They enable the execution of contracts under predefined conditions without relying on external oracles. DLC implementations primarily utilize Bitcoin scripting and multisignature technology to ensure contract execution is on-chain, transparent, and tamper-proof.
In summary, the OP_DLC Bridge is the core technology of Bitlayer for securely and efficiently facilitating the circulation of assets between the Bitcoin main chain and its Layer 2 network. It combines the security of DLC with the efficiency of optimistic protocols, providing users with a powerful tool for cross-chain asset management.
Bitlayer has announced that following the launch of its mainnet V1, it will introduce its first official NFT — the Bitlayer Lucky Helmet. This NFT is not just an image but a symbol representing the identity and contributions of Bitlayer community builders. A total of 5000 Lucky Helmets will be distributed via whitelist to active participants in the Bitcoin and Bitlayer communities.
The holders of the Lucky Helmet will enjoy a range of practical rights and benefits, including priority governance rights, potential token airdrops, official event points, and multiplier advantages in ecosystem projects. Additionally, the Lucky Helmet adopts the Ordinals issuance paradigm, optimizing circulation efficiency and minimizing transaction costs.
Ways to acquire the Lucky Helmet include priority passes and public whitelistings. These are aimed at the earliest and most active participants within the Bitlayer ecosystem. Additionally, a limited whitelist can be obtained through the Bitlayer x OKX Wallet event held in cooperation with OKX Wallet. These NFTs will be minted within specified timeframes and require completion of the minting process within the designated period on the official website.
Bitlayer was co-founded by Charlie Yechuan Hu and Kevin He.
Charlie Yechuan Hu is a co-founder of Bitlayer. Previously, he served as a managing partner at LucidBlue Ventures and has been involved in projects such as Polygon, Tezos, and Polkadot. He graduated from Nehru College of Commerce and Beijing Foreign Studies University. Charlie Hu played a crucial role in expanding the influence of Tezos and Polygon, particularly as the Head of Business Development for Tezos China and overseeing Polygon’s operations in China and Southeast Asia.
Kevin He is also a co-founder of Bitlayer. His previous roles include Vice President of Technology at Xfire Technology, Senior Technical Director at Huobi, and Chief Scientist at YOUChain. He holds a master’s degree in Software Engineering from Peking University.
As of now, Bitlayer has successfully completed a $5 million seed financing round. This round was led by Framework Ventures and ABCDE Capital, with participation from notable investment firms such as StarkWare, OKX Ventures, Alliance DAO, UTXO Management, and Asymmetric Capital. Additionally, the project attracted several prominent angel investors including Ryan Selkis, CEO of Messari, Dan McArdle, co-founder of Messari, and Dan Held, founder of Asymmetric Capital.
In addition to the seed financing, Bitlayer announced a $50 million developer airdrop initiative, which has attracted over 500 project teams to participate. These projects span various categories including infrastructure, DeFi, NFTs, SocialFi, cross-chain bridges, among others. Within 48 hours of its launch, the initiative received over 300,000 votes from users supporting their preferred projects. Registration for this initiative remains open until April 29, with the official competition expected to commence in mid-May. Participating projects will compete for a share of the $50 million token airdrop rewards and grants through ranking on leaderboards and accelerator programs.
Bitlayer is positioned within the domain of second-layer solutions for Bitcoin, focusing on expanding Bitcoin’s functionality, increasing its processing speed, and enhancing programmability while maintaining its security and decentralized nature. This sector is crucial for addressing scalability and flexibility issues within the Bitcoin network, enabling support for more complex financial and commercial applications.
The advantages of the Bitlayer project are mainly reflected in its unique technological innovation and strong ecosystem cooperation:
Despite Bitlayer demonstrating excellence in technological innovation and ecosystem development, like many tech projects, it also faces potential challenges and drawbacks. These disadvantages could impact its widespread adoption and ultimate success. Here are some major disadvantages Bitlayer may face:
Bitlayer’s development roadmap shows its major milestones over the next few releases:
Overall, Bitlayer’s plan involves a series of upgrades aimed at significantly increasing the number of ecosystem projects on its platform, enhancing the total locked value of assets, increasing daily transaction processing volume, and promoting integration and verification with BitVM at the first layer chain (L1). These goals demonstrate Bitlayer’s commitment to building a robust network that offers highly scalable solutions to support the growing demands of blockchain applications.
Bitlayer is advancing towards becoming a revolutionary Bitcoin Layer 2 solution with its innovative BitVM technology and layered virtual machine architecture. It aims to significantly enhance the scalability and smart contract capabilities of the Bitcoin network. As it progresses through its development roadmap, Bitlayer is committed to expanding its ecosystem to encompass thousands of projects, accumulating billions of dollars in total locked value, and processing millions of daily transactions. These efforts are expected to greatly enhance the practicality and market penetration of Bitcoin. Through continuous iteration from Mainnet-V1 to Mainnet-V3, Bitlayer demonstrates its ambition to become a hub of economic activity and innovation within the Bitcoin ecosystem.
This article is reproduced from [链茶馆], original title “Bitlayer: Bitcoin Layer of BitVM solution 2”, the copyright belongs to the original author [ 鲍勃葱 ], if you have any objection to the reprint, please contact Gate Learn Team, the team will handle it as soon as possible according to relevant procedures.
Disclaimer: The views and opinions expressed in this article represent only the author’s personal views and do not constitute any investment advice.
Other language versions of the article are translated by the Gate Learn team, not mentioned in Gate.io, the translated article may not be reproduced, distributed or plagiarized.