All You Need to Know About the Fiamma Verification Layer: Providing Bitcoin Network’s Security for all ZK Apps
Fiamma Verification Layer can enable all ZK applications to benefit from Bitcoin’s security.
How Does It Work?
BitVM2 is a protocol that enables the verification of arbitrary computations on Bitcoin using a fraud-proof approach. Building on this protocol, Fiamma has developed a comprehensive ZKP (zero-knowledge proof) implementation, including Groth16 and Fflonk. For more details, refer to Fiamma’s documentation on BitVM2 implementation.
BitVM2 can be summarized as follows:
- Assume there exists a valid computation represented as f.
- Implement f using Bitcoin’s script language, even if the script size exceeds Bitcoin’s block limit of 4MB.
- Split the complete script into multiple script chunks, each ideally under 400KB (and no more than 4MB).
- Assume an operator executes f locally.
- To enable the verification of computation fff on Bitcoin, the operator publishes all the input and output data of the chunks, along with their signatures.
- Any challenger can inspect the data disclosed by the operator for potential discrepancies and initiate a challenge transaction if any are found.
- If a challenge is successful, the operator’s staked BTC is slashed in a permissionless manner.
This mechanism ensures reduced operator misconduct risk through Bitcoin’s permissionless slashing capability, serving as a cornerstone of the fraud-proof protocol.
Fig1. BitVM2 process
What Real-World Problems Can the Verification Layer Solve?
- Trust-minimized Bridge Between Bitcoin and Other Chains
Currently, the primary method for BTC to flow across chains relies on centralized single-signature or multi-signature setups, making the value of wrapped BTC on other chains entirely dependent on the trustworthiness of private key holders. If the private key holder acts maliciously and transfers the BTC, the value of wrapped BTC will immediately drop to zero. BTC holders are highly focused on security, which we believe is why the total supply of wrapped BTC to date is still less than 1.5% of the total BTC supply. The trust-minimized bridge based on BitVM2 will revolutionize the design of traditional bridges. Fiamma’s trust-minimized bridge, powered by 2-way PEG, Covenant Emulation, and BitVM2, introduces a secure and permissionless alternative:
- BTC Asset Security: Self-custody of BTC assets, with no need to fully trust third parties, and the value remains pegged to Wrapped BTC.
- Trust-minimized PEG-IN: The process of PEG-IN is trust-minimized and permissionless.
- Trust-minimized PEG-OUT: The process of PEG-OUT is also trust-minimized and permissionless.
2. Trust-minimized LST (Liquid Staking Token)
Restaking enhances capital efficiency, allowing asset holders to capture additional yields. This can be achieved by improving liquidity, contributing to TVL, and providing security. Similar projects include Solv, Lombard, Satlayer, and others. However, existing Bitcoin-based LSTs are centralized and face the same trust issues as bridges. To truly unlock the asset value of BTC, it must be done securely. Therefore, a trust-minimized LST will be a crucial application that empowers both BTC holders and the broader industry.
3. BTC-Backed Trust-minimized Stablecoins
BTC-backed stablecoins represent a new narrative in the Bitcoin ecosystem, with projects like Yala gaining attention. However, the current method of locking BTC still relies on centralized multi-signature approaches, which face the same asset security and trust issues as the previously discussed scenarios. Additionally, as a BTC-backed stablecoin issuer, managing risk during significant BTC price fluctuations is a critical aspect of the product. If the underlying trust issues with BTC can be addressed, it is believed that the issuance of stablecoins will increase exponentially.
4. Bitcoin-Secured Layer 2
This is the most pressing issue in the current Bitcoin ecosystem: most so-called Bitcoin Layer 2 solutions, such as rollup chains, rely on their own security rather than on Bitcoin’s network. Their security is entirely dependent on the integrity of the Rollup chain itself. Using BitVM2, ZKPs can be verified directly on Bitcoin, enabling rollup chains to anchor their state proofs to Bitcoin. This transition from rollup-native security to Bitcoin-based security will significantly enhance trust and robustness.
What’s New in Fiamma’s Latest Product Updates?
- Verification Layer Public Devnet Fiamma’s public devnet for the verification layer is live, allowing any ZK Rollup chain or ZK applications built on Bitcoin to integrate with it for Bitcoin-level security. If you want to be the first Bitcoin-based L2 or a Bitcoin-native application, check out the onboarding documentation and contact the team for details.
- Trust-minimized Bridge Fiamma has recently launched its BitVM2-powered trust-minimized bridge, allowing BTC to move securely across any chain. Whether you’re working with a public chain or a sidechain, this development opens up new possibilities — stay tuned for more updates!
About Fiamma
Fiamma is dedicated to unlocking Bitcoin’s potential as the security and capital backbone of a decentralized internet. We are the first to enable optimistic on-chain ZKP verification on Bitcoin via BitVM2.
By launching a ZKP verification layer on Bitcoin, powered by BitVM2, we will unlock use cases such as trust-minimized Bitcoin bridges (trust-minimized wrapped BTC), ZK Bitcoin bridges (for swaps), and bridgeless interoperability with Bitcoin. In partnership with Babylon and Nubit, we are building a BTC Super Stack to democratize Bitcoin’s network and cryptoeconomic security, driving the development of Bitcoin-native and innovative applications.
These various use cases unlock trust-minimized omni-chain yield opportunities for Bitcoin holders and allow all ecosystems to access the immense value of Bitcoin trustlessly for the first time.
Our founding team, comprising core contributors to BitVM and seasoned ZK experts, positions us at the forefront of Bitcoin development and ZK technology innovation.
