Summary
- BitVM has the potential to expand the range of Bitcoin’s applications, in theory.
- In practice, it may fall short compared to the Ethereum Virtual Machine (EVM).
- Its impact on Altcoins remains to be seen in the long term.
“Any computable function can be verified on Bitcoin”
That’s how Robin Linus introduced his white paper on Turing-complete Bitcoin (BTC). Currently, Bitcoin is limited to basic functions, a feature many BTC supporters consider one of its strengths. It can perform functions like signatures, timelocks, and hashlocks. However, BitVM has the potential, in theory, to broaden the range of applications.
What Does Turing Complete Mean?
In a Turing-complete system, you can create complex smart contracts and decentralised applications (DApps), extending network functionality beyond simple transactions and enabling a wide range of applications. It essentially means that Bitcoin could support more advanced programmability.
Linus believes this opens the door to a variety of interesting applications He said, “Potential applications include games like Chess, Go, or Poker, and particularly, verification of validity proofs in Bitcoin contracts.”
David Seroy, Founder and CEO of Old North Capital Fund, pointed out that while the development is exciting the limitation lies within the two-party game (two-of-two requirement), which would prevent liquidity pools in the context of Automated Market Makers (AMMs).
What are the Changes?
As Bob Bodily, entrepreneur and blockchain builder said, “BitVM is a new Optimistic Roll Up + Fraud Proof + Taproot Leaf + Bitcoin Script computing paradigm.”
In simpler terms, BitVM takes a piece of computer logic that’s too large for a single action and breaks it into smaller parts spread across multiple actions. It’s not about adding new features; it’s about significantly expanding the size of programs.
Without delving too deeply into technicalities, BitVM is not as efficient as the Ethereum Virtual Machine (EVM). It is more costly, complex, and slower. Bodily discussed BitVM’s limitations in a post, stating, “This is not a silver bullet solution.”
Sam Parker, according to himself the internet’s most knowledgeable shitcoin nerd, said, “So Bitcoin really isn’t any more Turing Complete by the technical definition as it was before, it simply has been given a runtime to its programs that we can reasonably say it’s “Turing complete enough” for any program that we could realistically want to execute.”
So, What Does it Mean for Altcoins?
Although this development is exciting, there are limitations within the Bitcoin network, as mentioned. Additionally, while theoretically almost anything is possible, the costs can be prohibitive. Furthermore, Bitcoin was never designed to provide the same functionality as Ethereum (ETH) or other altcoins.
XRP Community sleuth WrathofKahneman commented: “It’s an interesting idea. I don’t think it is a game changer for anyone outside the BTC community; high costs, not trustless on the side, etc. (BTC is slow enough, as is…).”
David Seroy added that another major limitation is the risk of manipulation, “UTXOracle could never be used in any major commercial application. It has pretty material price swings and can be manipulated.”
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