Key Points
- Bitcoin scaling developers release a new Whitepaper for BitVM2, an improved version of the Bitcoin Virtual Machine.
- The drop in Bitcoin’s value in July resulted in less profit for Bitcoin mining companies.
A new Whitepaper has been released by Bitcoin scaling developers on the second version of the Bitcoin Virtual Machine, BitVM2.
The updated BitVM Bridge, which is described as the most secure BTC bridge design, is included in this new version. Alexei Zamyatin, co-author and co-founder of the Bitcoin sidechain BOB, stated that this version is an upgrade from previous BitVM versions.
BitVM2: An Upgrade from Previous Versions
Zamyatin asserts that this latest whitepaper is the most detailed documentation of the BitVM2 design to date.
It outlines the efforts made to improve the efficiency of transactions within the Bitcoin network. The team made enhancements in transaction handling capabilities and updated cryptographic methods to achieve this.
Robin Linus, the lead of the ZeroSync project and creator of BitVM, first introduced BitVM in October of the previous year.
The BitVM project was created with the aim of introducing smart contracts on the Bitcoin network through a second layer.
The primary goal of BitVM2 is to increase Bitcoin’s transaction capacity without altering its core code or principles, such as decentralization.
The BitVM2 operates under the assumption that the operators of such networks are honest and will not believe otherwise until challengers provide evidence of dishonesty using fraud proofs.
The BitVM2 also includes a permissionless system, which allows users to challenge suspicious transactions.
This is a significant change from the previous version, which only allowed designated parties to challenge transactions.
Other improvements to the BitVM Bridge include reduced capital requirements and shorter asset lock-up periods. These are crucial for transferring Bitcoin to and from rollups, secondary networks that facilitate faster and less costly transactions on the Bitcoin network.
Zamyatin stated that the team will continue to enhance the BitVM Bridge design by improving formal security proofs, light clients, and reducing on-chain costs.
Bitcoin Mining Profits Decrease
In related news, Bitcoin mining rigs and companies made less profit in July than they did in the previous month.
This coincided with a 6% drop in the price of Bitcoin, while the network hashrate remained stable.
As a result, investment banking giant Jefferies lowered its price target for Marathon Digital Holdings Inc (NASDAQ: MARA), a major player in this field, to $17 from $22.
This decrease came after a previous reduction to $22 from $24 in June. Based on the current market outlook, it appears that August may not perform as well as July.
