Bitcoin Approaches the Debut of Rollups to Improve Smart Contract Functionality

Blockchain developers are reportedly approaching completion of rollups on Bitcoin, which could add scalability and "unlimited smart contract functionality" to the original cryptocurrency network (CryptoPotato). The 'BitSNARK and Grail' system, which aims to establish a trust-minimizing connection between Bitcoin and layer 2 rollups and blockchains, was recently the subject of a whitepaper published by BitcoinOS. This novel rollup system is an advancement of BitVM, a paradigm for Bitcoin-based computation that was identified by Robin Linus a year ago. The capability of BitVM to validate 'Succinct Non-Interactive Arguments of Knowledge' (SNARKs) on Bitcoin was its most notable contribution; it facilitated the development of Bitcoin Rollup Bridges and scaling technologies comparable to Optimism or Arbitrum on Ethereum.

Utilizing a software library optimized for this purpose, BitSNARK, which is built upon BitVM, enables bridges that are sufficiently secure, efficient, and cost-effective to be put to practical use. "This resolves Bitcoin's trilemma of computational expressivity, decentralization, and scale," tweeted Edan Yago, one of the paper's authors. Furthermore, no modifications, softforks, or new operation codes are required for this development, he added.

Pre-existing Bitcoin layer 2 systems have encountered substantial compromises in comparison to scaling systems constructed on more expressive blockchains such as Ethereum. The expense and intricacy associated with channel administration may render Bitcoin's lightning network unfeasible for individual use. Moreover, the management of the 'bridge' connecting L1 and L2 in Bitcoin sidechains such as Liquid and Rootstock necessitates a federation of third parties; this creates a singular point of failure for both chains. BitSNARK is utilized by the new Grail system to construct SNARK proofs for Bitcoin and rollup transactions, thereby facilitating secure transfers of assets between L1 and L2 rollups. The Grail bridge is operational with a minimum of two operators, although it is possible for any number to be supported in theory. At present, the BitcoinOS team is striving to establish a bridge with more than one hundred administrators. Yago further stated, "The trust assumption is valid unless all parties conspire." "That is the reason for its tremendous strength."