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BitVM Just Got A Massive Upgrade

BitVM Just Got A Massive Upgrade
The introduction of BitVM smart contracts has brought scalability and programmability to Bitcoin. Bitlayer's Finality Bridge, which is now live on testnet, uses BitVM smart contracts, fraud proofs, and zero-knowledge proofs to enhance security and reduce the need for trust in third parties. The system allows Bitcoin to be locked into a BitVM smart contract, and users are issued YBTC tokens that represent real, locked Bitcoin on the main chain. This allows users to participate in DeFi activities within the Bitlayer ecosystem without compromising the security and settlement assurances of Bitcoin. While further advancements are needed to make the bridge trust-minimized, the Bitlayer Finality Bridge is currently the best realization of the BitVM 2 paradigm. Overall, this development is seen as a positive step towards Bitcoin fulfilling its destiny as the Ultimate Settlement Chain.

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