Monday, 21 April 2025
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BitcoinCrypto

A new study suggests off-chain Bitcoin computations

  • Users use a prover-verifier approach to verify Bitcoin (BTC) computations without running them on-chain.
  • Arbitrary calculations can be confirmed quickly on-chain by employing skillfully crafted “challenge-response” transactions.
  • BitVM is nonetheless restricted to a two-party configuration between a prover and a verifier.

A brand-new academic article titled “BitVM: Compute Anything on Bitcoin” suggests a novel technique for running sophisticated calculations and smart contracts on the Bitcoin network.

The article recommends that users use a prover-verifier approach to verify Bitcoin (BTC) computations without running them on-chain. The verifier can confirm whether the prover’s claim is true by examining the calculation’s outcome.

Off-chain Bitcoin computations

The prover converts the program into a sizable binary circuit of logic gates, commits to this circuit bit-by-bit using cryptographic commitments at a Taproot address, and the verifier can then query the prover to reveal specific portions of the circuit and assess their consistency.

Arbitrary calculations can be confirmed quickly on-chain by employing skillfully crafted “challenge-response” transactions that are signed by both parties. By doing so, the verifier can quickly identify any incorrect claims made by the prover.

The fundamental advantage of this “BitVM” architecture is that it doesn’t modify the consensus rules for Bitcoin because all the work is done off-chain, leaving only a modest on-chain footprint.

Although it is noted that BitVM can be expanded to any computable function, the paper uses straightforward logic gates to illustrate its potential.

Potential uses include hosting prediction markets directly on Bitcoin, connecting assets across chains, confirming computational proofs for Bitcoin contracts, and more. BitVM is nonetheless restricted to a two-party configuration between a prover and a verifier.

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