Summary
Robin Linus introduced BitVM last October, a way to enforce a NAND gate in Bitcoin script. This allows for arbitrary computations in Bitcoin contracts. BitVM 2 improves on the original design by shortening the challenge/response protocol and allowing anyone to act as a verifier. The use of connector outputs simplifies the process and reduces the number of transactions needed. BitVM 2 has the potential to greatly improve two way pegs to sidechains and other systems.
Key Points
1. BitVM introduced the concept of using a NAND gate as a primitive in Bitcoin script, allowing for more programmability and control over how money is spent or locked.
2. BitVM 2 builds upon the original design by shortening the challenge/response protocol length and allowing anyone to act as a verifier, improving the efficiency and security of the system.
3. BitVM 2 could potentially revolutionize the use of two way pegs in systems like rollups, offering a more flexible and trustless model for enforcing correct contract outcomes and penalizing dishonest operators.