BitcoinOS posts “game-changing” white paper on Bitcoin conversions

Blockchain developers are one step closer to unlocking the scrolls on Bitcoin, enabling “unlimited smart contract functionality” and boosting its once-alien scale to the OG crypto network.

On Friday, BitcoinOS published a white paper entitled “BitSNARK and the Grail”.

Rolls on Bitcoin: Possible?

The new rolling system is a departure from BitVM – a Bitcoin-based computing paradigm discovered by Robin Linus last year.

Among BitVM's most popular applications is its ability to verify “short non-interactive knowledge arguments” (SNARKs) on Bitcoin. By extension, this opens up the possibility for Bitcoin Rollup Bridges, and the expansion of similar technologies from Optisism or Arbitrum on Ethereum.

BitSNARK builds on BitVM using a software library optimized for this specific purpose, enabling bridges that are cheap, efficient, and secure enough for practical use.

“This is a solution to Bitcoin's trilemma of balance, computational transparency, and decentralization,” Edan Yago, one of the paper's authors, wrote on Twitter on Thursday. “No softfork, updates or new op-codes required.”

The new Bitcoin bridge model

Until now, existing Bitcoin Layer 2 systems have suffered from significant transaction losses compared to operational systems built on decentralized blockchains such as Ethereum. For example, the Bitcoin Lightning Network may grow unusable for individuals due to the cost and complexity of channel management.

In addition, Bitcoin sidechains such as Liquid and Rootstock require a federation of third parties to manage the “bridge” between L1 and L2, which represents a single point of failure for both chains.

That's where the Grail comes in: the new system uses BitSNARK to generate SNARK proofs for Bitcoin and roll exchanges and enables secure asset transfers between L1 and L2 rolls.

“While many systems rely on majority voting in the initial signature scheme for security, BitSNARK promises to provide robust security by allowing a single trusted agent to prevent abuse by any or all other agents,” the white paper states.

According to the authors, Grail Bridge requires at least two operators to operate, but in theory any number could be supported. Creators can set up a system for old bridge operators to leave the group or for new operators to join.

Yago said that the BitcoinOS team is currently considering designing a bridge with over 100 operators.

“Unless all parties agree, the presumption of trust works,” he added. “That's what makes it so strong.”

The white paper comes shortly after the launch of Runes – a Bitcoin token protocol that has seen a surge in activity and payments over the past week.