That aims to enhance Bitcoin's capabilities by introducing smart contract functionality and scalability without compromising its security. The platform's architecture evolves in three distinct stages:
Stage 1 – Bitlayer PoS (Foundation): Achieved in April 2024, this initial phase employs a Proof-of-Stake (PoS) consensus mechanism combined with multisignature custody to secure assets. Multiple Multi-Party Computation (MPC) custody platforms collaborate to hold Bitcoin reserves, enabling a fully Ethereum Virtual Machine (EVM)-compatible environment. This setup allows developers to deploy Solidity smart contracts without modifications, benefiting from ultra-low gas fees and interoperability. Additionally, cross-chain bridges and "Peg Tokens" facilitate the movement of BTC and other currencies onto the network, ensuring immediate utility while the full BitVM rollup is developed.
Stage 2 – Bitlayer Rollup (BitVM-based): Slated for Q1–Q2 2025, this phase introduces the core innovation: the BitVM paradigm. Bitlayer becomes a true Bitcoin rollup by verifying its Layer 2 state transitions directly on Bitcoin's blockchain. A new "trust-minimized BTC Bridge" replaces the earlier multisig solution, removing third-party trust. All existing EVM decentralized applications (dApps) can migrate seamlessly to the rollup, ensuring that every Bitlayer transaction is anchored by Bitcoin’s proof-of-work, thereby eliminating centralization assumptions.
Stage 3 – Supercharged Scaling: Targeted for Q4 2025, this final phase focuses on extreme performance. Bitlayer aims to achieve 20,000 transactions per second (TPS) and sub-three-second soft confirmations. Modular execution engines and new consensus mechanisms will optimize throughput, supporting enterprise-grade dApps and mass user adoption. This stage envisions a platform that combines secure PoS with a Bitcoin-secure, high-performance execution layer, bridging the best of Ethereum's programmability and Bitcoin's trust.
In summary, Bitlayer's architecture integrates a PoS-based chain with a Bitcoin-rollup, culminating in a modular, Turing-complete execution engine settled on Bitcoin. This layered design ensures security, performance, and EVM compatibility, positioning Bitlayer as a significant advancement in the blockchain ecosystem.