Bitlayer Network: The Computational Layer for Bitcoin
2.0
Abstract
Bitcoin's limited transaction throughput and programmability hinder its potential in Decentralized Finance (DeFi). Existing Layer 2 solutions often introduce new trust assumptions, failing to anchor their security directly to Bitcoin's consensus. This paper introduces Bitlayer, a Layer 2 network that solves this challenge using the BitVM paradigm. Our core contribution is a novel, recursive verification protocol that, for the first time, enables a continuous chain of Layer 2 state transitions to be verifiably settled on Bitcoin. This moves beyond mere data inscription to achieve security rooted in Bitcoin's proof-of-work. Furthermore, we deeply integrate BitVM bridge with our rollup protocol to enable secure transfers of Bitcoin assets. Finally, we designed a modular and Turing-complete execution engine, which, powered by a fast consensus mechanism, provides users with sub-second soft finality. Bitlayer unlocks Bitcoin's vast, untapped capital for a new generation of decentralized applications, laying a foundational infrastructure for the Bitcoin DeFi ecosystem.
1. Introduction
2.0
Abstract
Bitcoin's limited transaction throughput and programmability hinder its potential in Decentralized Finance (DeFi). Existing Layer 2 solutions often introduce new trust assumptions, failing to anchor their security directly to Bitcoin's consensus. This paper introduces Bitlayer, a Layer 2 network that solves this challenge using the BitVM paradigm. Our core contribution is a novel, recursive verification protocol that, for the first time, enables a continuous chain of Layer 2 state transitions to be verifiably settled on Bitcoin. This moves beyond mere data inscription to achieve security rooted in Bitcoin's proof-of-work. Furthermore, we deeply integrate BitVM bridge with our rollup protocol to enable secure transfers of Bitcoin assets. Finally, we designed a modular and Turing-complete execution engine, which, powered by a fast consensus mechanism, provides users with sub-second soft finality. Bitlayer unlocks Bitcoin's vast, untapped capital for a new generation of decentralized applications, laying a foundational infrastructure for the Bitcoin DeFi ecosystem.
1. Introduction