According to CryptoPotato, blockchain developers are nearing the launch of rollups on Bitcoin, which could provide the original cryptocurrency network with 'unlimited smart contract functionality' and scaling capabilities. BitcoinOS recently released the whitepaper for 'BitSNARK and Grail', a system designed to connect Bitcoin to layer 2 rollups and blockchains in a trust-minimized manner. This new rollup system is a development of BitVM, a Bitcoin-based computing paradigm discovered by Robin Linus in the previous year. BitVM's most significant application was its ability to verify 'Succinct Non-Interactive Arguments of Knowledge' (SNARKs) on Bitcoin, which paved the way for Bitcoin Rollup Bridges and scaling technologies similar to Optimism or Arbitrum on Ethereum.
BitSNARK, built on BitVM, uses a software library specifically optimized for this purpose, enabling bridges that are cost-effective, efficient, and secure enough for practical use. 'This is a solution to Bitcoin’s trilemma of scale, computational expressivity, and decentralization,' Edan Yago, one of the paper’s authors, posted on Twitter. He added that no softfork, upgrades, or new op-codes are necessary for this development.
Existing Bitcoin layer 2 systems have faced significant tradeoffs compared to scaling systems built on more expressive blockchains like Ethereum. For instance, Bitcoin’s lightning network can become impractical for individual use due to the cost and complexity of channel management. Additionally, Bitcoin sidechains like Liquid and Rootstock require a federation of third parties to manage the 'bridge' between L1 and L2, representing a single point of failure for both chains. The new system, Grail, uses BitSNARK to generate SNARK proofs for Bitcoin and rollup transactions, enabling secure asset transfers between L1 and L2 rollups. The Grail bridge requires at least two operators to function, but theoretically, any number could be supported. The BitcoinOS team is currently aiming to design a bridge with over 100 operators. 'The trust assumption works unless all parties collude,' Yago added. 'That’s what makes it so strong.'