Computing on Bitcoin #27
February 21, 2025 - Week 8

Welcome to this week’s edition of Computing on Bitcoin news.
As the ecosystem evolves, we’re bringing you the most exciting developments in zkVMs, Bitcoin scaling, bridges, and more.
Whether you’re a builder, investor, or just curious about what's trending in the scene, we’ve got you covered.
Take a look at this week's articles:

01

Kevin Wahle from Fairgate Labs explores the BitVMX off-chain communication system, introducing the Multi-Exchange Handler. This tool expands the protocol by managing more complex interactions between nodes. It enables handling multiple exchanges simultaneously while maintaining the original security and performance.

bitvmx.org
🔗 BitVMX off-chain communication system: Multi-Exchange Handler
In this article, we introduce the Multi-Exchange Handler, a new tool built on top of the BitVMX communication library. The handler expands the protocol by managing more complex interactions between nodes, making it possible to handle many exchanges at once while keeping the same high standards of security and performance as the original framework.

02

Strata BTC optimizes Blake3 hashing in BitVM2 using code developed by Martin Jonas from Fairgate Labs. This improves efficiency without modifying Blake3 itself, enhancing its integration into Bitcoin Layer 2 solutions.

03

Bitcoin Magazine highlights Bitlayer’s Finality Bridge testnet launch, built on BitVM, as a key step toward Bitcoin’s evolution. The article discusses its potential to drive renewed innovation in the ecosystem.

bitcoinmagazine.com
🔗 BitVM Just Got A Massive Upgrade
The introduction of BitVM smart contracts has marked a significant milestone in the path for scalability and programmability of Bitcoin. Rooted in the original BitVM protocol, Bitlayer's Finality Bridge introduces the first version of the protocol live on testnet, which is a good starting point for realizing the promises of the Bitcoin Renaissance or “Season 2”.

04

José Storopoli explores BitVM’s 1-of-N trust model for Bitcoin bridges, contrasting it with traditional federated multisig approaches. He explains key concepts like verified computation, Groth16 Bitcoin script compilation, and connector outputs for covenant emulation.

medium.com/nubit-official
🔗 BitVM: How to bridge using 1-of-N trust assumptions
BitVM is a bridge between Bitcoin and a sidesystem. Generally, these bridges are secured by a federated multisig, where to bridge-out you need to have a majority of the federation. Mathematically, this is a (N2+1)(2N​+1)-of-NN trust model. This is not ideal since it’s a “trust me bro” situation and the “bros” are the majority of the bridge. BitVM is different, since it can drastically reduce the trust assumptions. It is a 11-of-NN trust model, in which as long as you have one live honest operator, you can withdraw on-chain.

05

A new episode of The Rollup podcast explores BitVM, ZK proofs, and Bitcoin rollups. Guests from Bob, Fiamma, and Boundless discuss BitVM’s role in Bitcoin scaling, its trust-minimized design, and its potential for integrating secure DeFi.

How ZK Will Power Bitcoin’s Next Era of Scaling

@The Rollup
Today's episode takes a deep dive into the next era of Bitcoin, the network, and BTC the asset.

As Bitcoin transitions from retail speculation to institutional adoption, new infrastructure is quietly reshaping its capabilities. Stacks stands at the forefront of this evolution.

BitVM and its iterations are progressing faster than expected, turning theoretical discussions into practical solutions. While initial L2 hype has cooled, the underlying technology continues to advance, creating opportunities that many have overlooked.

06

The Bitcoin Economy Conference videos have been released, featuring discussions on Bitcoin scaling, BitVM, and the future of decentralized finance. The playlist includes key talks from industry experts on emerging Bitcoin Layer 2 solutions.

The Bitcoin Economy Conference

@House of ZK
Bitcoin Magazine Technical & Opinion Editor, Shinobi, closed the Bitcoin Economy Conference, offering a forward-look at Bitcoin's role in shaping the future global economy.
House of ZK Radio is a focused podcast and media initiative covering everything zero-knowledge, from the fundamentals and most recent advancements to exploring the ‘why’ of ZK and the stories of visionaries behind the tech. We examine how ZK is set to transform our digital lives and aim to make complex concepts digestible for all.

07

GOAT Network, a Bitcoin Layer 2, combines zkMIPS and BitVM2 to enable EVM compatibility while maintaining Bitcoin's security. It introduces a decentralized sequencer and optimizations for Groth16 proofs, reducing complexity in BitVM2’s challenge process

gate.io
🔗 zkMIPS Bitcoin二层 GOAT Network 上线
Bitcoin's Layer 2 network is a technological solution designed to enhance transaction speed. By offloading part of the transaction processing from Bitcoin's main blockchain to off-chain mechanisms, it reduces the load on the main chain, increases transaction throughput, and lowers costs. Common Layer 2 technologies include the Lightning Network, State Channels, and the increasingly popular combination of zkRollups with the BitVM2 bridge.

08

Citrea introduces Clementine, its latest BitVM-based Bitcoin bridge design, enhancing security and efficiency. The update refines fraud-proof mechanisms and optimizes data verification, making Bitcoin interoperability more robust.

blog.citrea.xyz
🔗 Citrea's BitVM-Based Bitcoin Bridge - Clementine's Latest Design
About a year ago, Citrea proposed one of the first Bitcoin bridge designs using BitVM. Citrea's native Bitcoin bridge, named Clementine, enables Citrea to inherit validity from Bitcoin, therefore the safest and most trust-minimized way to use BTC in decentralized finance. Clementine ensures the validity of state transitions on Citrea by optimistically verifying zero-knowledge proofs on Bitcoin. In addition to verifying these state transitions, Clementine also manages peg-ins and peg-outs to Citrea in a trust-minimized manner.

09

LayerEdge explains how they leverages Risc Zero’s ZKVM and Boundless to scale Bitcoin. The article explores how zero-knowledge proofs enhance scalability, security, and decentralized computation for Bitcoin Layer 2 applications.

blog.layeredge.io
🔗 Scaling the Bitcoin-backed Internet: LayerEdge leverages RISC Zero’s zkVM and Boundless for Proof Aggregation
Bitcoin has remained the most secure and decentralized blockchain, but its programmability and scalability limitations have led to a new wave of innovation — trust-minimized verification layers, zkRollups, and proof aggregation frameworks.
At LayerEdge, we are pioneering Bitcoin’s first Proof Aggregation Layer, enabling a scalable and cost-efficient way for protocols to anchor their zk proofs on Bitcoin with minimal overhead. Our latest milestone in this journey? Leveraging RISC Zero’s zkVM and Boundless for scalable, trust-minimized proof aggregation.

That’s it for this week’s edition.
We hope these insights helped you stay ahead in the fast-moving world of Computing on Bitcoin.
See you next Friday with more cutting-edge updates!