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Computing on Bitcoin #38
May 09, 2025 - Week 19

Welcome everyone to a new edition of Computing on Bitcoin news.
This week’s edition includes articles about Bitcoin’s data limits, zero-knowledge interoperability, and more.
Discover the latest takes and discussions shaping Bitcoin’s future. Enjoy the reading!

01

A new post explores how LayerEdge leverages BitVM to enable trustless Bitcoin settlement. The system uses BitVM’s challenge-response model and ZK aggregation to support scalable, verifiable execution without relying on custodians.

medium.com/@al.afeez
🔗 DETAILS ABOUT THE TECHNOLOGY BEHIND LAYEREDGE

LayerEdge is not a traditional Layer 2 (L2) solution like the Lightning Network, nor does it generate blocks or manage transactions directly. Instead, it functions as a decentralized verification and proof aggregation layer that enables scalable, trust-minimized computation and settlement on Bitcoin. Its mission is to transform Bitcoin from a store of value into a 'decentralized supercomputer' capable of supporting complex applications, such as decentralized finance (DeFi), artificial intelligence (AI), Internet of Things (IoT), and decentralized identity (DID), while maintaining Bitcoin’s security and decentralization.

02

A recent article from The Bit Times highlights growing concerns about corporate influence in Bitcoin development, linking a proposal to expand OP_RETURN limits with the needs of ZK and BitVM-related projects aiming to store more data on-chain.

thebittimes.com
🔗 The corporate interests taking over Bitcoin development

Last week, alarm bells rang over a proposal to relax data storage limitations via an operation code of Bitcoin script.
It was a deceptively minor change to the policy of full node software that shed light on the corporate interests encroaching on Bitcoin’s technical development.
Instead of rubber-stamping the idea, technical Bitcoiners sprang into action, whipping up support for their side of the debate. Critics revealed the commercial interests of companies like Citrea and an assortment of zero-knowledge (ZK) and Bitcoin virtual machine (BitVM) companies that are pushing developers to raise data storage abilities.

03

Ola is developing a ZKP platform to support trustless Bitcoin interoperability. By enabling BitVM2-based bridges with state proofs, it aims to remove custodians and unlock decentralized BTCFi.

04

In Episode 98 of Bitcoin, Explained, titled 'Return of the OP_RETURN', hosts Aaron van Wirdum and Sjors Provoost delve into the recent proposal to remove the 80-byte limit on OP_RETURN outputs in Bitcoin Core.

bitcoinexplainedpodcast.com
🔗 Episode 98: Return of the OP_RETURN

Aaron and Sjors discuss the proposal to remove the OP_RETURN limit from Bitcoin Core, which has sparked a heated debate in the Bitcoin community. They explore the implications of this change, including its potential impact on Bitcoin's scalability and privacy. The hosts also touch on the motivations behind the proposal and the various perspectives within the community.

05

In the recent episode of the Stephan Livera Podcast, NVK delves into the evolving landscape of Bitcoin self-custody and highlights the transformative potential of BitVM for Layer 2 solutions.

Bitcoin Self-Custody in 2025 with NVK | SLP655

@Stephan Livera
Stephan & NVK discuss the current state of self-custody in Bitcoin, highlighting the advancements in hardware wallets like Coldcard and the importance of understanding trade-offs in wallet solutions. Coldcard introduces new features such as co-signing and key teleport, which enhance security and usability. The conversation also touches on the future of wallet software, including the promising Cove Wallet and the potential of Miniscript in Bitcoin transactions.
NVK also highlights the significance of seed phrases in Bitcoin custody, critiques the current OP_Return dynamics and GitHub moderation, and reflects on the implications of BitVM and Layer 2 solutions.

Thanks for reading—more updates, insights, and breakthroughs are coming your way next week.
Until then, don't stop building and exploring!
The Fairgate Team