Recently, the BTC Layer2 project BEVM announced its investment from Bitmain, which has attracted considerable attention. So why did Bitmain invest in BEVM? What are the remarkable features of its technology? This article will introduce the technology and development of BEVM.
Table of Contents
What is Taproot Consensus?
Schnorr Signature
MAST (Merkle Abstract Syntax Tree)
Bitcoin SPV Node Network
Why is BEVM worth attention in BTC L2?
Recently, a BTC Layer2 project called BEVM announced that it has received investment from Bitmain, with a post-investment valuation of $200 million. This financing news has attracted significant attention.
The key point is not the valuation, but the investor, Bitmain. Since its establishment in 2013, Bitmain has dominated the global Bitcoin mining machine market with its leading Bitcoin mining machine research and development technology. It not only ranks first in the mining machine business worldwide but also has absolute influence in the global Bitcoin mining community through its mining farms and mining pools.
Since 2023, the popularity of Bitcoin has stimulated the rapid development of the Bitcoin ecosystem, with numerous Bitcoin applications and Layer2 projects that enhance Bitcoin’s performance. However, despite the favorable Bitcoin ecosystem for the mining community, there has still been a lack of leading figures like Bitmain in the mining ecosystem.
Many people previously believed that institutions like Bitmain would not be interested in the Bitcoin ecosystem, but Bitmain’s decisive move has dispelled all doubts.
Not only that, after the launch of BEVM’s mainnet, it conducted an on-chain airdrop activity with Binance Web3 Wallet. BEVM is also the first BTC Layer2 project to be integrated into the Binance Web3 mainnet.
So, as an investment from Bitmain and the first BTC Layer2 project integrated by Binance, what are the highlights and advantages of BEVM that set it apart from other BTC Layer2 projects and garner support from two top-tier institutions in the crypto industry?
What is Taproot Consensus?
In my opinion, whether it is Bitmain’s investment or Binance’s support, the priority consideration must be the project’s security, technological innovation, and its long-term value and impact on its own brand. For a BTC Layer2 project, the underlying technology is the foundation of everything.
Before understanding BEVM, we need to understand an important concept about Bitcoin Layer2—Taproot Consensus. This solution, known as “a BTC Layer2 solution that can rival Rollup,” was proposed by the BEVM team in 2021 based on the Bitcoin Taproot upgrade.
Taproot Consensus = Schnorr Signature + MAST + Bitcoin SPV Node Network. Let’s break it down.
Schnorr Signature is a digital signature algorithm introduced in the Bitcoin Taproot upgrade in 2021. Compared to elliptic curve signatures, Schnorr Signature has the advantage of expanding Bitcoin’s multi-signature addresses to 1000. This means that 1000 Taproot wallet addresses can collectively manage the same BTC assets, ensuring efficiency, security, and privacy. Traditional Bitcoin multi-signatures based on elliptic curve signatures have a maximum limit of only 15 addresses, while Schnorr Signature enables sufficient decentralization of multi-signature addresses.
However, achieving decentralization of multi-signature addresses is not enough. It is also necessary to achieve automation and intelligence in the signing process, i.e., code-driven signing instead of relying on individuals.
Imagine if a BTC L2 project requires a group of people to sign one by one for the addresses holding the Bitcoin, the efficiency would be extremely low, and the security would be compromised.
Therefore, after achieving decentralization of multi-signature addresses, MAST needs to be introduced to achieve automation and code-driven signing.
MAST is also one of the core technologies introduced in the Bitcoin Taproot upgrade. MAST stands for Merkle Abstract Syntax Tree, which uses Merkle trees to encrypt complex locking scripts. Its leaves are a series of non-overlapping scripts (such as multi-signature or time locks). When spending, only the relevant scripts and the path from the script to the Merkle tree root need to be disclosed. MAST can be understood as a “smart contract” that can handle multi-signature payments on the Bitcoin chain (although it is different from Ethereum’s smart contracts, it can achieve similar effects when applied to Bitcoin’s Schnorr multi-signature).
With MAST, Schnorr signatures can be made intelligent, automated, and code-driven, eliminating the concept of “multi-signature participants” and replacing it with code instructions. This is a very important point.
So, who issues the instructions? They are issued by the Bitcoin SPV Node Network.
The Bitcoin SPV Node Network is a network composed of Bitcoin light nodes running on the BTC Layer2 network. It relies on BFT network consensus to drive MAST instructions. It is not driven by any organization or individual, thus achieving complete decentralization.
Why use the Bitcoin SPV Node Network instead of a regular POS node network? Because Bitcoin light nodes can synchronize Bitcoin Layer1 data and can securely verify payments without requiring complete transaction records. In other words, they can achieve Simplified Payment Verification (SPV), which was proposed by Satoshi Nakamoto in the Bitcoin whitepaper.
To summarize:
Schnorr Signature: Enables the expansion of Bitcoin multi-signature addresses to 1000, achieving decentralization of multi-signature addresses.
MAST: Enables code-driven management of multi-signatures, eliminating the need for manual signing and relying on code instructions.
Bitcoin SPV Node Network: Driven by the consensus of Bitcoin light nodes on the Layer2 network, achieving complete decentralized Bitcoin cross-chain transactions and management.
Schnorr Signature + MAST + Bitcoin SPV Node Network together build the fully decentralized BTC Layer2 solution called Taproot Consensus.
Why is BEVM worth attention in BTC L2?
On the other hand, Taproot Consensus was proposed by the BEVM team, and BEVM is the first BTC Layer2 use case of Taproot Consensus.
What is most remarkable is that Taproot Consensus is built entirely on native Bitcoin technology, without introducing any technology outside of Bitcoin or making any modifications to Bitcoin’s code. It is a culmination of Bitcoin’s native technologies: Schnorr Signature, MAST, and Bitcoin SPV Node Network.
It can be said that this is currently the most native and decentralized BTC L2 solution, which is why it is described by the community as a BTC Layer2 solution that can rival Ethereum’s Layer2 Rollup.
In contrast, most of the other Bitcoin Layer2 solutions in the market are simply copying Ethereum’s Layer2 solutions. For example, solutions forcibly introducing ZK-Rollup to Bitcoin. Firstly, Bitcoin miners only verify Bitcoin-related data and cannot verify other data such as ZKP. Since Bitcoin Rollup cannot achieve the same security as Ethereum Rollup at the Layer1 level, ZK-Rollup or OP-Rollup has no meaningful impact on Bitcoin Layer2. These are solutions that completely imitate Ethereum without professionalism and rigor.
Furthermore, there are similar solutions like RGB and BitVM that appear to be clear Layer2 solutions for Bitcoin. However, RGB and BitVM are still attempting to expand within the limited block space and minimalist UTXO model of Bitcoin. This not only contradicts the purity of Bitcoin but also makes it difficult to truly achieve the expansion of Bitcoin Layer2. After all, based on UTXO, only simple asset issuance can be done. To achieve greater scalability for Bitcoin, it is necessary to move Bitcoin to Layer2 in a trustless manner to expand its application scenarios.
Currently, BEVM’s Taproot Consensus Bitcoin Layer2 solution not only fully inherits Bitcoin’s native technology but also allows Bitcoin to move to Layer2 in a completely decentralized manner without modifying any Bitcoin code or consensus. This enables infinite scalability, making it a truly innovative and practical Bitcoin Layer2 solution.
After all, only by achieving decentralization and trustlessness can the security of BTC Layer2 assets be ensured. By solving the asset security problem, a stable and long-term on-chain ecosystem and applications for Bitcoin can be built.
And security and sustainable long-term development may be the most important criteria for top institutions like Bitmain and Binance to choose to support ecosystem projects. Undoubtedly, BEVM perfectly meets these principles.
In my opinion, this is the only answer as to why BEVM stands out from numerous BTC Layer2 projects. While mid-level institutions choose rapid growth, top-tier institutions choose steady and long-term development, which is an unchanging rule in any field.