From BitVM to BTCFi: How Bitlayer is Giving Bitcoin the Wings of Smart Contracts
For over a decade, Bitcoin has been hailed as "digital gold." Its value is undeniable, but its functions have remained largely confined to storage and payment. In stark contrast, Ethereum has built a vast application ecosystem with smart contracts and DeFi.
Today, this situation is being rewritten. With the introduction of BitVM technology, Bitcoin finally has the potential for smart contracts, and Bitlayer is bringing it into reality.
What does BitVM bring?
Compatible with Bitcoin consensus: No hard forks needed, and it does not compromise security.
Challenge-response mechanism: Most computations are executed off-chain, only disputes go on-chain, significantly reducing costs.
Theoretical feasibility: It allows Bitcoin to operate with logic close to Turing completeness, meaning dApps and complex financial contracts are no longer exclusive to Ethereum.
In other words, BitVM is the programmable key for Bitcoin.
Bitlayer's Practical Implementation
Bitlayer is one of the first projects to run on the mainnet based on BitVM technology, building two core modules:
BitVM Bridge
Next-generation BTC cross-chain bridge, designed with minimal trust.
BTC can be converted into on-chain assets (like YBTC), truly entering the DeFi world.
Bitlayer Network
High-performance Rollup based on BitVM.
Supports real-time EVM, latency <10ms, compatible with Ethereum development tools.
All states are eventually written to the Bitcoin chain, achieving security and scalability.
This allows Bitcoin to not only "store" but also "use."
Collaboration and Endorsement
Bitlayer's momentum comes from three aspects:
Public chain ecosystem: Interoperability has been established with leading L1s like Sui, Base, Arbitrum, Cardano.
Mining pool network: Backed by powerhouses like Antpool, F2Pool, SpiderPool.
Capital strength: $25 million in financing, with investors including Polychain Capital, Franklin Templeton, Framework Ventures, ABCDE.
This "triple combination" is extremely rare in the BTCFi space.
As traditional finance accelerates its entry into the BTC market, the "sleeping value" of Bitcoin needs to be released. @BitlayerLabs and BitVM are catalysts in this process.
In the future, Bitcoin may not just be "digital gold," but a true global financial operating system.
