BitVM is the technical lever that enables a near Turing complete L2 on top of Bitcoin by expressing computations with optimistic verification and compact L1 commitments. Bitlayer uses BitVM to implement dispute-resolution games, off-chain execution verification, and compressed settlement proofs that anchor to Bitcoin’s UTXO-set. The clever engineering: heavy computation occurs off-chain (fast, cheap), while Bitcoin enforces correctness via compact challenge windows and collateralized validators.
This hybrid optimistic execution, L1 anchoring, and economic penalties gives a pragmatic path to richer on-chain logic without changing Bitcoin itself. The implications are large: permissionless derivatives, BTC-native lending, and AMMs that settle in BTC become practical. For developers and protocols, BitVM’s patterns are a new toolkit for building L2 apps that borrow Bitcoin’s credibility while offering modern DeFi UX.
#Bitlayer @BitlayerLabs $BTR
