BitVM Aims to Scale Bitcoin, Not Launch DeFi Applications
The developer behind BitVM, a Bitcoin-based virtual machine, emphasizes that the technology is intended to scale Bitcoin rather than enable decentralized finance (DeFi) applications on the network. BitVM’s whitepaper was released by Robin Linus, the project lead of ZeroSync, with technical support from pseudonymous developer “Super Testnet.” While some initially believed that BitVM would bring DeFi to Bitcoin similar to Ethereum’s Virtual Machine (EVM), the author clarifies that the main motivation behind BitVM is scalability. Super Testnet also expresses concerns about flooding BitVM with EVM-like tokens and Ponzi schemes from the Ethereum ecosystem.
No Decentralized Exchange on Bitcoin
Super Testnet argues that building a decentralized exchange on Bitcoin would be a step backward and adds that BitVM won’t instantly render altcoins useless but could potentially reduce their demand. The developer hopes that Bitcoin remains the primary monetary unit on the network to eliminate floating exchange rates that burden commerce.
BitVM Improves Lightning Network’s Payment Reliability
In addition to scalability, BitVM aims to address one of the Lightning Network’s shortcomings: payment reliability. While Lightning is faster than most solutions built on Bitcoin, it struggles with ensuring reliable payments. Super Testnet hopes that BitVM can achieve 60% of the transaction speed of the Lightning Network.
BitVM is Optional and Can’t Compute Everything Yet
Super Testnet emphasizes that using BitVM is optional, and users will have the freedom to transfer BTC or Bitcoin-assets out of the virtual machine back into cold storage or their original location. The developer also clarifies that in its current state, BitVM cannot compute “anything” as suggested in its whitepaper. Additional primitives, such as SHA-256 and encryption, need to be implemented for broader functionality.
Hot Take: BitVM Focuses on Scaling Bitcoin, Not DeFi
BitVM is designed to scale Bitcoin by processing millions of transactions per second. The intention is not to bring DeFi applications to Bitcoin like the Ethereum Virtual Machine did for Ethereum. Super Testnet, one of the developers behind BitVM, expresses concerns about flooding BitVM with tokens from the Ethereum ecosystem and Ponzi schemes. Building a decentralized exchange on Bitcoin is seen as a step backward. BitVM aims to improve payment reliability, addressing a shortcoming of the Lightning Network. While it’s optional to use BitVM, it’s not yet capable of computing everything. The developer hopes that Bitcoin remains the primary monetary unit on the network.
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