BitVM: Compute Anything on Bitcoin

BitVM is a computing paradigm that allows for the expression of Turing-complete Bitcoin contracts without making changes to the network's consensus rules. Instead of executing computations on Bitcoin, they are verified in a similar manner to optimistic rollups. In this approach, a prover makes a claim about a function evaluation for specific inputs and outputs, and if the claim is false, the verifier can provide a succinct fraud proof and punish the prover.

By using BitVM, any computable function can be verified on Bitcoin. Committing to a large program in a Taproot address requires significant off-chain computation and communication, but the resulting on-chain footprint is minimal. This means that as long as both parties collaborate, they can perform complex, stateful off-chain computation without leaving a trace on the blockchain. On-chain execution is only necessary in case of a dispute.

For more detailed information, you can refer to the official BitVM paper: https://bitvm.org/bitvm.pdf.