Computing on Bitcoin #47
July 11, 2025 - Week 28

Welcome to a new edition of Computing on Bitcoin News.
Each week, we highlight the research, projects, and ideas that are redefining what’s possible with Bitcoin.

Whether you’re building, learning, or simply exploring, these updates will keep you connected to the pulse of innovation. Let’s get into it.

01

Ariel Futoransky, Gabriel Larotonda, and Fadi Barbàra, from Fairgate Labs, analyze RSA-based garbling in BitVM3 and show that even tiny circuits allow evaluators to forge wire labels, breaking authenticity.
🔗Paper : A note on the security of the BitVM3 garbling scheme:

FairgateLabs
🔗BitVM3-garbling-toy

fairgate.io/publications
🔗 A note on the security of the BitVM3 garbling scheme

Research shows that using a very small circuit malicious evaluators can forge wire labels and break the security of the system.

fairgate.io/blog
🔗 On the security of RSA-based garbling schemes

Our research shows that, even with a very small circuit, malicious evaluators can forge wire labels and break the security of the system.
This affects both the original scheme and the alternative proposed by Alva Fu, Stephen Duan, and Ethan Zhu.
A minimal example demonstrates how a malicious evaluator can exploit the scheme. The attack uses a small circuit consisting of two AND gates and three inputs, and doesn’t depend on reblinding nor sub-circuit reuse.

02

Citrea founders joined Bitcoin Rails #27 to discuss building the first “proper rollup” on Bitcoin mainnet with BitVM, why they reject bridge modularity, and how their bridge sparked Bitcoin Core’s OP_RETURN relay drama.

Building Rollups on Bitcoin + the Battle for OP_Return | with Citrea

@Isabel Foxen Duke
In this episode, we cover Citrea's development of what will likely be the first “proper rollup” on Bitcoin mainnet, as well as their account of "what happened" with Bitcoin Core, the OP_RETURN drama, and their take on @LukeDashjr's vendetta against Bitcoin for data availability.

03

Babylon shared its 2025 roadmap to power BTCFi with trustless, non-custodial Bitcoin liquidity using BitVM. Highlights include multi-staking, EVM support, and a production-ready Bitcoin bridge to turn BTC into a working DeFi asset.

babylonlabs.io/blog
🔗 The Road to BTCFi: Babylon’s 2025 Roadmap

2025 is the year that Babylon Genesis becomes the center of the BTCFi ecosystem.
Q3 2025: Bitcoin Multi-Staking Testnet
Babylon Genesis will deploy multi-staking: a single BTC stake will supercharge multiple networks simultaneously, and earning multiple reward streams.
The first integrations will include:
· ETH Rollups: Optimism, Arbitrum
· Cosmos Chains: Multiple sovereign networks
More tech stacks will follow.

04

Rarimo introduced “Wrapless”, a lending protocol that enables the collateralization of BTC without requiring a trusted wrapping mechanism

arxiv.org
🔗 Wrapless book v.0.3 - Rarimo Protocol

This paper aims to design a Wrapless – a lending protocol that enables the collateralization of BTC without requiring a trusted wrapping mechanism. This paper describes a solution that enables locking BTC in the ”loan channel” and providing a loan on another blockchain platform, such that the loan’s installment (which can be partial) results in unlocking the corresponding amount of BTC.

05

StarkWare unveils Kakarot x S-two, a collaboration to bring zero-knowledge proofs to everyday devices.

starkware.co/blog
🔗 Kakarot x S-two: Bringing ZK to everyday devices

Our current proving workflow follows this process: We start with an Ethereum block number, which feeds into our ZK Prover Inputs Generator (ZK-PIG) to create the necessary proving inputs. Separately, our Keth source code gets compiled by the Cairo Zero compiler into Cairo Assembly using Stark Field f252. The computational work happens on cloud machines, where we generate execution traces of the program to prove using the block’s inputs. Finally, S-two takes the Cairo execution trace and outputs a cryptographic proof of the block execution.

That’s all for this week’s Computing on Bitcoin News.
Thanks for reading and staying engaged with the ideas pushing Bitcoin’s evolution forward. We’ll be back next Friday with more insights, research, and stories from the frontier of decentralized systems.
—The Fairgate Team