Computing on Bitcoin #48
July 18, 2025 - Week 29

Welcome back to Computing on Bitcoin News—your weekly briefing on the breakthroughs and research redefining what Bitcoin can achieve.
We curate the most relevant updates across scalability, bridging, and verifiable computation, so you can stay connected to the frontier of programmable Bitcoin. Let’s dive in.

01

Sergio Lerner, from Fairgate Labs, introduced a new payment channel design built with BitVMX, enabling compact watchtower support and efficient state revocation using Schnorr signatures.

bitvmx.org/knowledge
🔗 Building Secure and Watchtower-efficient Bitcoin Payment Channels with BitVMX

This article presents a sample payment channel that uses to support efficient revocations. It can be easily extended to function as a state channel and support Hash-Time Locked Contracts (HTLCs) for lightning-like routing. However, we aim to keep it simple so that it serves as a clear example of BitVMX’s capabilities and how it can be integrated as a subcomponent of other Bitcoin protocols.

02

Bitlayer's Biggest Reveals at Summer Launch 2025: BitVM Bridge Mainnet, Bitlayer Network V2 Whitepaper, and V3 Preview

blog.bitlayer.org
🔗 Bitlayer's Biggest Reveals at Summer Launch 2025: BitVM Bridge Mainnet, Bitlayer Network V2 Whitepaper, and V3 Preview

Bitlayer, a Bitcoin DeFi infrastructure project, today revealed its latest technical developments and growth strategy during its Summer Launch 2025 virtual event. Co-founders Kevin He and Charlie Hu unveiled the latest technical advancements, key milestones achieved since launch, and the updated roadmap for Bitcoin DeFi.

03

BOB launches its BitVM testnet, enabling native BTC deposits secured by fraud proofs instead of custodians or multisigs, supported by major partners like P2P.org, Lombard, Solv Protocol, Amber Group, Ankr, RockawayX, Fiamma, UTXO Management, Luganodes and SatLayer.

blog.gobob.xyz
🔗 BOB Enables Native Bitcoin DeFi in BitVM Testnet Launch

BOB, the hybrid chain combining Bitcoin’s security with Ethereum’s DeFi innovation, has enabled native BTC on its network with a new BitVM bridge testnet launch supported by leading institutions and DeFi players, including P2P.org, Lombard, Solv Protocol, Amber Group, Ankr, RockawayX, Fiamma, UTXO Management, Luganodes & SatLayer. Following the testnet, the BitVM bridge and native BTC will go live on BOB mainnet in Q4 2025.

04

Alpen Labs introduces Glock, a new cryptographic primitive for verifying offchain computation on Bitcoin using garbled circuits and DV-SNARKs. Glock aims to overcome BitVM’s cost and complexity, offering up to 1000× cheaper verification with minimal staking.

alpenlabs.io/blog
🔗 Glock: A new standard for verification on Bitcoin

Over the last few months, Alpen Labs’ focus has rapidly evolved to a new frontier of minimal-trust verification on Bitcoin. Next week, we will unveil Glock, short for garbled lock or garbled circuit-based lock. Glock is a new cryptographic primitive that creates a new standard for verifying offchain computation on Bitcoin, with minimal onchain cost.

05

Charlie Hu, Co-Founder of Bitlayer Labs, spoke at Istanbul Blockchain Week about how BitVM innovations are enabling real trustless Bitcoin DeFi

Moving the Frontier of Bitcoin DeFi with BitVM innovations, by Bitlayer Labs

@Istanbul Blockchain Week
Charlie Hu, Co-Founder of Bitlayer Labs, shares how BitVM innovations are opening the door to real Bitcoin DeFi.
He explains why trustless DeFi on Bitcoin has remained out of reach, and how Bitlayer’s rollup architecture and BitVM tech are solving that. From miner-aligned incentives to recursive proofs, Charlie walks through how Bitlayer brings composability and smart contracts to Bitcoin without compromising on its core security.

06

Yusuf Ozmiş, from Yildiz Technical University, proposes several zero-knowledge applications on Bitcoin using zk-STARKs and BitVM.

eprint.iacr.org
🔗 Applications Of Zero-Knowledge Proofs On Bitcoin

This paper explores how zero-knowledge proofs can enhance Bitcoin's functionality and privacy. First, we consider Proof-of-Reserve schemes: by using zk-STARKs, a custodian can prove its Bitcoin holdings are more than a predefined threshold X, without revealing addresses or actual balances. We outline a STARK-based protocol for Bitcoin UTXOs and discuss its efficiency.

07

Panga Capital introduces Vishwa, a trust-minimized protocol enabling yield on self-custodied BTC via BitVM2-powered bridges.

medium.com/pangacapital
🔗 Yield Without Tears: Unlocking Self-Custodied Yield on BTC

For 15 years Bitcoin has been the world’s first decentralized settlement network precisely because it isn’t a Turing-complete computer. Limited opcodes, hard-fork aversion, and a “shelling point” social contract have kept the protocol simple, auditable, and politically neutral. The cost is obvious: native DeFi is impossible. No on-chain AMM, no lending markets, no composable derivatives.

08

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

arxiv.org
🔗 BOB: The Gateway to Bitcoin DeFi

It’s been over two years since the Bitcoin renaissance began with the launch of Ordinals - and over a year since BOB mainnet went live.
Bitcoin is the world’s most valuable digital asset and the 10th largest currency globally. Yet, despite its dominance, Bitcoin remains largely untapped in DeFi.
While Ethereum has achieved ~30% DeFi TVL penetration, Bitcoin lags at just 0.3%. That’s a 100x growth opportunity - worth roughly $750 billion in latent capital.

09

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

blockworks.co/news
🔗 BitVM3 promises cheaper Bitcoin bridges — but not yet

BitVM3 remains a highly promising but deeply experimental approach. Meanwhile, BitVM2 bridges and other approaches look set to be Bitcoin’s next major step toward trust-minimized layer-2 scaling.

Thanks for reading this edition of Computing on Bitcoin News!
From research labs to testnets and protocols in production, the pace of Bitcoin innovation is only accelerating.
We’ll be back next Friday with more updates and ideas from the frontier.
The Fairgate Team