BitVM is a project aiming to enhance the smart contract capabilities of Bitcoin without the need for a fork. It allows for more enhanced smart contract functionality by running computations off-chain. The system verifies the computations using fraud proofs and a challenge-response protocol, similar to optimistic rollups. BitVM enables the verification of any computable function on Bitcoin and opens up potential applications such as games, prediction markets, and bridging Bitcoin to other chains. The system minimizes the on-chain footprint, requiring on-chain execution only in the event of a dispute. The project aims to increase the versatility and functionality of Bitcoin’s smart contracts.
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