What is BitVM? Bitlayer and Sui

The realm of blockchain is rapidly advancing, and BitVM is a significant innovation to look out for. BitVM aims to enable smart contract capabilities on Bitcoin, which could revolutionize the way Bitcoin is used within the DeFi space. This article examines the technology known as BitVM and what it can mean for those involved in the Sui and Bitlayer ecosystems.

What is BitVM?

BitVM is an abbreviation for the Bitcoin Virtual Machine. It enables the running of sophisticated smart contracts on Bitcoin without modifying the core protocol. BitVM allows developers to create smart contracts and decentralized applications on Bitcoin, using sophisticated cryptography and off-chain computation verification.

BitVM does not necessitate a hard fork or Layer 1 upgrade. It relies on Bitcoin’s built-in scripting language and clever use of logic circuits to perform computations that can be verified on the Bitcoin blockchain.

How Does BitVM Work?

Optimistic execution is a key feature of BitVM. The process can be explained as follows:

• The proponent presents a computational claim based on the outcome of a smart contract.
• Verifier checks that claim off-chain.
• The outcome will be approved if it is correct. If not, the challenge process enables the verification of all steps on-chain by using a dispute resolution protocol.
• Only when there is a dispute does the actual computation get revealed and verified on-chain, thus reducing gas and network usage.
• The design enables more advanced logic to run on Bitcoin’s blockchain, while maintaining the same level of decentralization and trust.

Who Created BitVM?

Robin Linus, a developer from ZeroSync and a veteran of the Bitcoin community, presented the idea of BitVM in October 2023. The whitepaper proposed how to make Bitcoin more adaptable while preserving its unaltered nature.

Ever since the initial launch of BitVM, the community has been working to find practical applications for the technology.

Why is BitVM Important?

Bitcoin is the most secure and decentralized cryptocurrency, yet it has been missing the ability to program smart contracts. BitVM changes that:

Smart contracts on Bitcoin: BitVM enables users to access DeFi, NFTs, and other services using only their Bitcoin.

No need for Layer 2s or custodians is required. BitVM enables trustless interactions between parties using Bitcoin’s built-in capabilities.

Better scalability and security: Computations are not carried out on-chain unless needed for dispute resolution.

This development makes Bitcoin a more viable option for building decentralized applications.

Big milestone in #BTCfi:@BitlayerLabs will launch the first trust-minimized BitVM bridge on @SuiNetwork!
Say hello to Peg-BTC (YBTC) — Bitcoin’s gateway to high-speed DeFi. pic.twitter.com/5FLBv8UfKz

— Bitlayer BitVM (@BitlayerLabs) May 15, 2025

Breaking News: Bitlayer and Sui unveil a bridge that utilizes BitVM to connect Bitcoin and Sui

Bitlayer, a project dedicated to Bitcoin smart contracts, has partnered with Sui to create a Bitcoin bridge using BitVM technology.

The bridge enables users to move their BTC to Sui’s fast Layer 1 network.

Users can use their Bitcoin to engage in DeFi activities such as staking, farming, borrowing, and more on the Sui platform.

No custodians, no intermediaries: The bridge operates entirely on the blockchain, is open to everyone, and is governed by code.

The YBTC token is a wrapped version of BTC and is used within the Sui network.

The Bitlayer team emphasizes that security and scalability were the main goals in developing this cross-chain DeFi solution.

What Comes Next for BitVM?

BitVM is still in its infancy, yet its future prospects are promising. Here’s what to expect:

Increased use of BitVM for building interoperable DeFi applications.

Building decentralized applications on BitVM using Bitcoin as the main asset.

There is a possibility that a BitVM token, known as BAVM, can play a role in governance, gas fees, or staking in decentralized applications that are built on top of BitVM.

Continuous efforts are being made to make BitVM more user-friendly and secure.

The expansion of tools and support for BitVM could transform Bitcoin’s role in the world of programmable blockchains.

FAQ

Q1: BitVM does not alter the fundamental functioning of Bitcoin.

BitVM runs on top of the Bitcoin network and does not modify the rules that govern the network.

Q2: What is the BitVM token?

At the moment, there is no official BitVM token available. Some solutions like Bitlayer’s bridge convert Bitcoin into an equivalent token on other blockchains.

Q3: BitVM can process and execute smart contracts for real DeFi applications.

BitVM enables DeFi applications to be built on Bitcoin by using bridges and smart contract simulation.

Q4: Is BitVM secure?

BitVM is built with the principle of trustlessness that underpins Bitcoin. Only those computations that cannot be verified off-chain are handled directly on the blockchain.

Q5: Is BitVM live today?

The Bitlayer x Sui bridge is one of the first bridges to be launched and is already operational. The technology is likely to become more widely used as it develops further.

Conclusion: BitVM Could Revolutionize the Way Bitcoin Functions

BitVM has the potential to turn Bitcoin into a fully-fledged smart contract platform while preserving its core principles of decentralization and security.

The Bitlayer-Sui bridge is a testament to the fact that this vision is now a reality. BitVM could open up a range of new possibilities by allowing Bitcoin to participate in DeFi and dApps without relying on third-party services.

This trend is worth keeping an eye on for anyone involved in the world of Bitcoin. BitVM technology is already making waves in the industry, even if a token has yet to be released.

Author