Replying to Avatar Max

A two way peg is a second layer transaction system, where new tokens are created when bitcoin is locked up on the base layer, and those bitcoin can only be spend, if those second layer tokens are destroyed.

That's the original vision of Blockstreams early side chain research, and it took 10+ years to finally have a trustless way to get Bitcoin from the side chain to the baselayer.

What enables this magic is succinct zero knowledge proofs which are verified on the base layer in order to unlock the Bitcoin. With BitVM the zk proofs can be emulated on bitcoin today.
Avatar
2Pac 1y ago

So you’re saying it doesn’t rely on a federation like Liquid does?

Reply to this note

Please Login to reply.

Discussion

Avatar
Max 1y ago

Exactly.

There is a 1-of-n lifeness assumption in BitVM, so you trust that at least one of the operators will behave according to protocol, but even the operators cannot steal your money.