One of Bitlayer's biggest innovations is the introduction of the BitVM architecture. It allows Bitcoin to transition from being merely a 'store of value' to supporting smart contracts and more complex computations by implementing Ethereum-like virtual machine logic in Bitcoin Layer 2. This means developers can build DApps under the security of Bitcoin without worrying about the performance limitations of the main chain. BitVM maintains Bitcoin's ultimate security while granting the ecosystem 'programming capabilities', which is an important milestone in pushing BTC into a new phase.

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