GOAT Network’s BitVM3-based architecture enables reusable ZK circuits and efficient data compression, making Bitcoin ZK Rollups scalable and production-ready.
Label Forward Propagation and zkMIPS reduce computation costs and off-chain data by 1,000x, solving key Bitcoin scalability bottlenecks.
GOAT introduces a decentralized sequencer model with sustainable BTC yield and cross-chain interoperability, driving Bitcoin’s DeFi and Layer 2 potential.
As the cornerstone of the blockchain world, Bitcoin has earned global trust for its unparalleled security and decentralization.
However, for years, Bitcoin’s low transaction throughput (around 7 transactions per second) and high fees have limited its application in emerging fields like decentralized finance (DeFi) and smart contracts.
To address these bottlenecks, Layer 2 solutions have emerged, with Zero-Knowledge Rollups (ZK Rollups) gaining the spotlight due to their efficient transaction processing capabilities and privacy-preserving features.
In June 2025, GOAT Network released a next-generation reusable homomorphic obfuscation circuit architecture based on BitVM3, successfully solving two major challenges of native ZK Rollup on Bitcoin: the limitation of single-use circuits and the handling of massive off-chain data.
This breakthrough has moved Bitcoin ZK Rollups from theory to real-world deployment and opened a new chapter for Bitcoin’s scalability and functionality.
ZK ROLLUP: THE STAR OF LAYER 2 SCALING
ZK Rollup is a Layer 2 scaling solution that moves computation and storage off the main blockchain (Layer 1), using Zero-Knowledge Proofs (ZKPs) to ensure the correctness of off-chain transactions. It significantly boosts transaction efficiency while reducing costs.
The core idea is to batch and process many transactions off-chain, then submit a compressed transaction batch and a proof to the main chain for verification.
The main chain only needs to verify the proof’s validity rather than re-execute all transactions, significantly reducing on-chain load.
This method can increase transaction throughput by hundreds of times while maintaining the security and decentralization of the main chain. Additionally, ZKPs offer privacy by concealing transaction details, further enhancing user security.
In the Ethereum ecosystem, the potential of ZK Rollups has been proven by projects like zkSync and StarkNet. These leverage Ethereum’s smart contract capabilities to verify zero-knowledge proofs and update the rollup state on-chain.
However, Bitcoin’s script language (Bitcoin Script) is minimalistic, focusing on payments and basic logic, and lacks the ability to support complex computations.
This makes implementing ZK Rollups on Bitcoin exceptionally difficult without modifying the protocol. GOAT Network’s recent breakthrough is a revolutionary answer to this challenge.
TECHNICAL BARRIERS TO BITCOIN ZK ROLLUP
Implementing ZK Rollups on Bitcoin poses a range of unique challenges. First, Bitcoin’s script language is limited and cannot directly support the complex logic required by zero-knowledge proofs.
While Ethereum smart contracts can easily verify proofs and update state, Bitcoin needs innovative mechanisms to simulate this functionality.
Secondly, early BitVM (Bitcoin Virtual Machine) based solutions featured single-use cryptographic circuits that had to be regenerated for each verification, increasing costs and reducing efficiency, making large-scale transaction processing impractical.
Moreover, ZK Rollups generate massive amounts of off-chain auxiliary data (typically hundreds of GB), posing major challenges for storage and transmission, especially in Bitcoin’s decentralized environment.
Finally, any Layer 2 solution must include a robust trust model and economic incentives to align the interests of operators, verifiers, and miners while avoiding centralization. These issues have kept Bitcoin ZK Rollups in the experimental stage, far from real-world deployment.
GOAT Network’s breakthrough provides new solutions to these problems. Their optimized BitVM3 architecture not only overcomes technical bottlenecks but also paves the way for deployment with a sustainable economic model.
At the core of this innovation is a redefinition of how zero-knowledge proofs are implemented on Bitcoin, moving from theoretical concept to production-grade application.
GOAT NETWORK’S TECHNICAL REVOLUTION
GOAT Network’s latest architecture is built on BitVM3, a computation framework utilizing Bitcoin’s Taproot upgrade, first proposed by Robin Linus.
BitVM3 employs a “challenge-response” mechanism that allows Bitcoin Script to verify complex computations without modifying the protocol.
GOAT Network deeply optimized this foundation to tackle the two core challenges of Bitcoin ZK Rollups: single-use circuit limitation and massive off-chain data handling.
Source：Goat
First, GOAT Network introduced a Label Forward Propagation mechanism, fundamentally changing how cryptographic circuits are designed.
In traditional BitVM solutions, circuits were custom-built for specific transaction batches and could not be reused, making verification costly.
Label Forward Propagation abstracts the input-output relationships of circuits, enabling the same circuit to act as a universal template reusable across multiple transaction batches.
Combined with Homomorphic Obfuscation Circuits, this innovation ensures security and privacy during reuse. This significantly reduces computation and verification costs, making large-scale deployment of ZK Rollups on Bitcoin feasible.
Second, GOAT Network made breakthroughs in off-chain data processing. Traditional ZK Rollups generate hundreds of GBs of auxiliary data, creating immense storage and transmission challenges.
GOAT Network used optimized data structures and efficient encoding techniques to compress off-chain data to just a few MB—over 1,000x reduction.
They leveraged the compression capabilities of ZKPs (like the efficiency of STARKs), submitting only critical state and proofs on-chain while using sharding and distributed storage to further reduce node burden.
This compression not only enhances efficiency but also lowers hardware requirements, allowing more nodes to participate and strengthening decentralization.
Additionally, GOAT Network developed its own zkMIPS (Zero-Knowledge Virtual Machine), providing low-level support for the new architecture. zkMIPS efficiently generates both STARK and SNARK proofs, accelerating the proving and verification process.
While BitVM3 was originally expected to take 5–10 years to reach practical deployment, GOAT Network’s optimizations have reduced that timeline to 6–12 months, marking a transition from experimental to production-ready ZK Rollups on Bitcoin.
SUSTAINABLE REVENUE AND ECOSYSTEM EXPANSION
GOAT Network’s innovations go beyond technology—they also designed a sustainable economic model to ensure long-term growth of Bitcoin ZK Rollups. Traditional Layer 2 projects often rely on high-inflation token incentives, which are hard to sustain.
GOAT Network addresses this with a Decentralized Sequencer model. Sequencers handle off-chain transaction processing and batching.
GOAT Network employs random assignment and rotation to prevent malicious actors while combining gas fees, Maximum Extractable Value (MEV), and miner incentives to offer participants sustainable Bitcoin-native yields (BTC Yield), with projected annual returns of 2%–30% or more.
To enhance the trust model, GOAT Network introduces a multi-round challenge mechanism and dual-penalty system. If an operator submits an invalid transaction batch, verifiers can challenge and expose the fraud, receiving rewards.
This random verification and incentive mechanism ensures fairness and security within the network. Their Economic Brown Paper outlines these mechanisms in detail, showing how to achieve incentive alignment in a decentralized context.
GOAT Network’s architecture also supports strong cross-chain interoperability. Using ZKM’s Entangled Rollup technology, they have achieved seamless integration with Ethereum, TON, Cosmos, and other chains—eliminating the need for centralized bridges.
This enhances Bitcoin asset liquidity and opens new opportunities for DeFi, NFTs, and gaming. For example, BTC holders can trade on Ethereum-based DEXs or participate in social apps on the TON ecosystem—without the usual cross-chain security risks.
THE FUTURE OF THE BITCOIN ECOSYSTEM
GOAT Network’s breakthrough has profound implications for Bitcoin’s future.
First, its ZK Rollup technology significantly boosts Bitcoin’s throughput and cost efficiency, enabling support for high-frequency trading and complex applications like decentralized exchanges and NFT marketplaces.
This scalability transforms Bitcoin from “digital gold” into a full-featured blockchain platform, attracting more developers and users.
Second, with its sustainable BTC yield model, GOAT Network offers new investment opportunities for Bitcoin holders, driving the growth of Bitcoin Finance (BTCFi).
Whether through staking, trading, or gaming, BTC and DOGE holders can earn returns, increasing community engagement.
Source：Oklink
In the long run, GOAT Network’s open-source strategy will further accelerate innovation in the Bitcoin ecosystem. Their BitVM2 testnet is already live and actively recruiting challenge nodes, demonstrating a strong commitment to community-driven development.
The upcoming open-source release of BitVM3 is expected to attract global developers to build the Bitcoin Layer 2 infrastructure collaboratively.
Within the next 6–12 months, GOAT Network is poised to launch a production-grade ZK Rollup network, becoming a core pillar of the Bitcoin ecosystem.
Their vision extends beyond performance improvements—aiming to build a decentralized, efficient, cross-chain ecosystem where Bitcoin shines in DeFi, social, and gaming sectors.
〈ZK Rollup: A Revolutionary Scaling Solution for Bitcoin — The Breakthrough of GOAT Network〉這篇文章最早發佈於《CoinRank》。
