BitVM, a Bitcoin-based virtual machine, is primarily focused on scaling Bitcoin rather than implementing decentralized finance applications like Ethereum, according to one of its developers. The project lead, Robin Linus, released BitVM’s white paper on October 10, with support from the pseudonymous developer “Super Testnet” for the first proof-of-concept and expanding BitVM’s capabilities. Some industry experts initially thought that BitVM would bring decentralized finance to Bitcoin, similar to how the Ethereum Virtual Machine (EVM) facilitated it on the Ethereum network.
However, Super Testnet clarifies that BitVM is designed to scale Bitcoin and improve its transaction processing capacity, rather than enable smart contracts and a flood of altcoins. He explains that Linus is not a big fan of smart contracts or expanding Bitcoin’s expressivity. Super Testnet also believes that bringing the Ethereum ecosystem, which he regards as having many Ponzi schemes, to Bitcoin would attract bad actors and hinder its progress. He asserts that building a decentralized exchange on Bitcoin would be a step backward.
Super Testnet does not believe BitVM will instantly destroy Ethereum’s altcoins, but it could divert demand away from them. He hopes that Bitcoin remains the only monetary unit on the network, emphasizing the importance of having a single monetary asset for commerce instead of multiple floating exchange rates.
Additionally, BitVM aims to address one of Lightning Network’s shortcomings by improving payment reliability. While Lightning is faster than any comparable system, it lacks the reliability required for seamless transactions. Super Testnet hopes that BitVM can achieve 60% of the Lightning Network’s transaction speed.
Super Testnet assures that BitVM is optional, just like the Lightning Network, and users will be able to transfer Bitcoin assets in and out of the virtual machine as they please. He emphasizes that no one will be forced to send their money into the virtual machine if they want to keep it safe.
Furthermore, it’s important to note that BitVM, in its current state, cannot compute “anything” as suggested in its white paper. More primitives, such as SHA-256 and encryption, need to be implemented to enable a wider range of operations. However, BitVM is already capable of processing basic functions.
Linus and Super Testnet have been collaborating for around 18 months to scale Bitcoin at the scripting level since meeting at a Bitcoin conference. Their goal is to improve Bitcoin’s scalability and transaction processing capabilities.
In conclusion, BitVM’s focus on scaling Bitcoin sets it apart from Ethereum’s EVM and its decentralized finance applications. While there is enthusiasm surrounding BitVM, it remains to be seen how it will impact the broader crypto landscape and whether it can deliver on its goals.
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