Founder of the Bitcoin-native Data Availability Layer (DAL), Nubit Professor Yu Feng, published an article highlighting the benefits of Bitcoin Virtual Machine (BitVM) technology as a crucial component for promoting the large-scale application of the Bitcoin ecosystem.

BitVM is designed to introduce programmability to Bitcoin, transforming it from a platform intended primarily for simple transactions into one capable of executing more complex operations, such as running smart contracts. Developed by Robin Linus in 2023, BitVM enables users to build applications on Bitcoin, akin to what is possible on other platforms like Ethereum. However, BitVM distinguishes itself by preserving the high security and decentralization that Bitcoin is renowned for.

Historically, Bitcoin’s limited scripting capabilities have contributed to its security but restricted its flexibility. BitVM addresses this limitation by facilitating off-chain computations, which allow most processing to occur outside the Bitcoin network. Only the results are verified on the blockchain. According to Yu Feng, this approach is similar to running a complex program: instead of overloading the entire network, BitVM permits only the final verification to take place on-chain, thus maintaining efficiency and scalability within the system.

Yu Feng Highlights Similarities Between BitVM And EVM Layer 2 Solutions

Professor further points out that BitVM technology bears similarities to Ethereum virtual machine (EVM) Layer 2 solutions, in particular in the light of the fact that much of the recent activity within the Bitcoin ecosystem has reflected or adapted infrastructure and business models from Ethereum. However, upon examining BitVM’s design and implementation flow more closely, he found it to be more complex than he initially anticipated.

Developing BitVM necessitates a compilation infrastructure that exceeds the capabilities offered by RISC0 or SP1. This complexity arises because the generated code does not align with the same powerful computational model as the original host language. Instead, it operates under stringent spatial and semantic limitations. Consequently, developers cannot simply use syntax-directed translation like traditional compilers, but they must employ program synthesis—a dynamic area of research that has been evolving for decades within the programming languages community and where much remains to be explored, he noted. 

This technology has the potential to unlock new avenues for decentralized finance (DeFi), smart contracts, and other consumer applications built on Bitcoin’s network. Nevertheless, it also presents new challenges related to security and programmability, particularly in adapting complex tasks to Bitcoin’s constrained environment. The focus of current research at Nubit is to make BitVM production-ready, which includes enhancing security, optimizing compilers, and developing tools to support the growth of the BitVM ecosystem, with the hope of achieving widespread adoption in the near future.

Nubit functions as a DAL that is backed by Bitcoin and is designed to benefit the Bitcoin community. By increasing Bitcoin’s data capacity, it facilitates various applications, including Ordinals, Layer 2 networks, and price oracles, thereby enhancing the overall scope and efficiency of the Bitcoin ecosystem. Nubit operates as a consumer network that bridges the gap between Web2 and Web3, leveraging Bitcoin’s capabilities, and is supported by Polychain.

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