bitcoin & Beyond is an educational series from the team at x.com/therollupco”>The Rollup It focuses on a new and emerging class of developers in the bitcoin ecosystem. Through interactive spaces, panels, and presentations, the goal is to provide deep technical knowledge on innovative scaling projects.
In an interview with Chase of x.com/moleculebtc”>MoleculeWe delve into the growing appetite for next-generation virtual machines (VMs) aimed at improving bitcoin’s programmability and scalability. Molecule is one company at the forefront of this experiment. Its attempt to implement the Solana Virtual Machine (SVM) with bitcoin is a clear sign that developers are also considering alternatives to the popular ethereum Virtual Machine (EVM).
High-performance virtual machines for bitcoin
Chase emphasized that Molecule's goal is to leverage the highest-performance execution environment to benefit bitcoin users. He believes the Solana Virtual Machine (SVM) offers unparalleled performance and cost-effectiveness. “SVM offers the highest performance with a battle-tested execution environment,” Chase noted, highlighting the VM's ability to achieve 1,000 transactions per second at a fraction of a cent per transaction.
SVM’s architecture, designed for parallel transaction processing, significantly improves scalability and efficiency. At a very basic level, it enables the simultaneous execution of multiple smart contracts, which distinguishes SVM from other virtual machines that rely on sequential processing models, such as EVM. This results in higher throughput and lower latency, which is crucial for applications that require high throughput and minimal transaction costs.
A thriving developer ecosystem
A key reason for Molecule’s decision to adopt the Solana Virtual Machine (SVM) lies in its thriving developer ecosystem and the wide adoption of Rust as a programming language. Solana has over 3,300 active developers as of late 2023. According to Electric CapitalThis robust community is supported by extensive educational tools and resources that have significantly improved developer retention.
Chase also mentioned Rust, Solana’s development language, as a crucial factor in SVM’s success. With over 3 million Rust developers worldwide, the transition to using SVM is easy for many given their familiarity with the language. This broad developer base and the language’s strong integration within Web3 ecosystems ensure that SVM is not only technically superior, but also advantageous for broader adoption and innovation.
By focusing on a virtual machine that aligns well with developer preferences and offers a robust and scalable environment, Molecule ensures that they are building on a foundation that encourages rapid development and deployment of new applications on bitcoin.
Monolithic vision vs. modular vision
Another point of emphasis was the inherent limitations of bitcoin’s Layer 1, which require a modular approach to improve programmability and scalability. Traditional monolithic blockchains integrate all core functions (execution, data availability, consensus, and settlement) into a single layer. While this design improves security and decentralization, it also creates significant bottlenecks that limit transaction throughput and flexibility. bitcoin’s Layer 1 can process only a limited number of transactions per second, which restricts its ability to support complex smart contracts and higher transaction volumes.
To address these limitations, Molecule takes a modular approach, decoupling these functions into distinct layers. This architecture allows for specialization and optimization of each layer, significantly improving scalability and efficiency. By leveraging modular stacks, Molecule aims to integrate Solana’s execution layer (SVM) with ZK (zero-knowledge) verification for bitcoin transactions.
Molecule’s innovative SVM stack focuses on enabling ZK verification of transactions via a ZKVM (zero-knowledge virtual machine) and publishing Scinct Non-Interactive Arguments of Knowledge (ZK) on bitcoin using a challenge-reward mechanism. This method ensures the secure and efficient completion of transactions on bitcoin.
Molecule is considering different options for this challenge mechanism, potentially using BitVM or a variant based on a future OP_CAT soft fork. BitVM uses a challenge verification system where any verifier can challenge transactions during a predefined challenge period, ensuring the integrity and accuracy of asset transfers. Chase explained: “You can verify any asset transfer from Molecule to bitcoin. There is a challenge period where any verifier can come and say there are some issues, then they can go through this challenge mechanism.” This approach combines off-chain computation with on-chain verification, providing a robust and cost-effective solution for maintaining transaction finality and security.
A new bitcoin L2 narrative
When asked about the bitcoin community’s stance on Layer 2 (L2) solutions, Chase noted a noticeable shift in attitude toward the adoption of programmability. Traditionally, many bitcoin purists have been wary of L2 solutions, fearing that they could compromise the network’s security and decentralization. However, recent advancements and the growing demand for more scalable applications have begun to change this perspective.
“I think the bitcoin community is definitely demanding programmability for bitcoin. SVM is the best solution for that in terms of performance and cost,” Chase said, highlighting the community's growing openness to L2 innovations.
Molecule’s innovative approach and commitment to integrating high-performance virtual machines (VMs) with bitcoin marks a transformative step toward improving bitcoin’s utility and scalability.
This is a guest post from The Rollup. The opinions expressed are solely his own and do not necessarily reflect those of btc Inc or bitcoin Magazine.
