Introduction

Despite its popularity, the Bitcoin network faces scalability, interoperability, and functionality limitations. These constraints hinder the network’s potential to enable broader innovation. Layer 2 solutions have emerged to address these shortcomings. Built on the Bitcoin blockchain, these solutions leverage Bitcoin’s security while allowing faster and cheaper transactions conducted off-chain.

One such innovative Layer 2 solution is SatoshiVM, a Zero-Knowledge Rollup that processes multiple transactions in a single batch. This approach improves transaction speed and reduces costs on the Bitcoin network.

This article expounds on SatoshiVM (SAVM) and its value proposition as a leading Bitcoin layer 2 solution.

What is SatoshiVM?

Source: SatoshiVM

SatoshiVM, named after the mysterious creator of Bitcoin Satoshi Nakamoto, is a virtual machine designed to execute smart contracts and decentralized applications on blockchain networks. It aims to enhance decentralized platform’s efficiency, scalability, and interoperability, just like Ethereum’s virtual machines.

SatoshiVM was designed for the development and execution of smart contracts. Unlike traditional virtual machines, SatoshiVM is powered by blockchain networks, enabling developers to build and deploy smart contracts using familiar programming languages. This promotes the accessibility of decentralized applications and accelerates the adoption of blockchain technology.

The ability to support smart contract development is important as it contributes to streamlining processes like token disbursement, voting rights, and various agreements within blockchain networks. By providing a reliable platform, supported by ZK-Rollups, for executing smart contracts, SatoshiVM fosters trust and efficiency within decentralized applications.

Unique Features

Some of the important features of SatoshiVM are as follows:

a) Secure Settlement Layer: SatoshiVM uses Bitcoin as the secure settlement layer for its L2 transactions.

b) Taproot Integration: SatoshiVM can represent complex function executions effortlessly through a single hash. This has been made possible by leveraging Taproot features.

c) Zero-Knowledge Proof: SatoshiVM conducts the zero-knowledge proof mechanism for each block off-chain. This enhances the efficiency and integrity of the process.

d) Data Availability Verification: The Data Availability Layer has been used to enhance third-party verification. This layer transmits block data and proof data hash to the Bitcoin blockchain during block verification.

Advantages of SatoshiVM

a) Fraud Proof: SatoshiVM uses the Zero-Knowledge Rollup technology to collate several transactions into a single batch. These are validated on the Bitcoin blockchain as a single transaction while employing BTC as gas for EVM.

b) Simplicity: SatoshiVM uses a versatile ZK Rollup that employs off-chain computations allowing users to interact with the ecosystem in a simplified interface. Additionally, developers can build on the protocol as easily as they would on Ethereum.

c) Based on Proof-of-Work: SatoshiVM is built on the Bitcoin blockchain, utilizing the network’s security without altering its consensus rules.

Disadvantages of SatoshiVM

a) Regulatory uncertainty: SatoshiVM, as a crypto project, faces legal and regulatory challenges as the legal status of Bitcoin and other cryptocurrencies varies across geographical regions. This affects its normal operations since no universal legal and regulatory framework guides the crypto industry.

b) Technical challenges: SatoshiVM still has the potential to face several technical hurdles, including optimizing the proof generation and verification algorithms, implementing sharding and interoperability features, and ensuring compatibility and integration with existing Web3 tools and platforms.

c) Competition: SatoshiVM competes with other Layer 2 solutions for Bitcoin. With the increasing number of innovative Bitcoin L2s, SatoshiVM is required to constantly innovate or lose its relevance.

How Does SatoshiVM Work?

SatoshiVM leverages zk-Rollups, a technology that uses cryptographic proofs to verify transactions off-chain without compromising security or disclosing details. These cryptographic proofs enable off-chain transaction processing, significantly reducing transaction fees and processing times on the Bitcoin network.

Further, by combining zk-Rollups with native BTC support, SatoshiVM offers a fast, scalable, and user-friendly platform for deploying smart contracts and decentralized applications on Bitcoin, thus, ensuring speed, security and trust.

Additionally, SatoshiVM uses BitVM’s approach to authenticate arbitrary computations on the Bitcoin network. It also uses native BTC as gas for EVM transactions, simplifying interaction with Bitcoin. Thus, users can send and receive BTC, and deploy and execute smart contracts and decentralized applications on the protocol.

SatoshiVM Architecture

Source: SatoshiVM

Settlement Layer (Bitcoin)

The settlement layer delivers data processes for on-chain validation for the validity of SatoshiVM transactions. The outcome of the process is observable by all users in the ecosystem. Off-chain data is also documented and preserved within this layer.

Sequencing Layer

This layer contains foundational nodes whose responsibility is to uphold the protocol’s operations. It temporarily stores all transactions, allowing validity to be confirmed from on-chain data.

Proving Layer (Circuits)

The Proving layer generates proofs and is responsible for verifying SatoshiVM transactions and states on the Bitcoin blockchain. It also generates transactions while keeping to the Bitcoin Taproot specification, thus allowing SatoshiVM blocks to be verified on the Bitcoin blockchain. In addition, Provers and Nodes work to transform data into Taproot transactions and create execution traces where a node (or specific nodes) can validate the entire process.

SatoshiVM Bridge

SatoshiVM bridge is an on-chain feature of SatoshiVM used for bridging tokens on the platform using wallets supported by SatoshiVM, such as MetaMask. The SatoshiVM bridge is necessary to transfer assets from layer 1 to layer 2 and vice versa.

Transferring assets from Bitcoin/Ethereum (L1) to SatoshiVM (L2) is called “Deposit” while transferring assets from SatoshiVM (L2) to Bitcoin/Ethereum (L1) is referred to as “Withdraw.” SatoshiVM Bridge consists of two Bridges — the BTC Bridge and the SAVM Bridge.

BTC Bridge is used to bridge assets to and from the SatoshiVM and Bitcoin networks. On the other hand, SAVM Bridge is used to bridge assets to and from the SatoshiVM and Ethereum networks.

How to Use BTC Bridge

Source: SatoshiVM Bridge

To deposit from the Bitcoin network to SatoshiVM via BTC Bridge, follow these steps:

1) Connect a Bitcoin-compatible wallet: SatoshiVM Bridge supports Gate web3 wallet

2) Enter the amount of BTC you wish to deposit

3) Then, click on “Deposit” to complete the transaction

To withdraw from the SatoshiVM network to the Bitcoin network through the BTC Bridge, follow these steps:

1) Connect a SatoshiVM-compatible wallet, such as Gate web3 wallet or MetaMask

2) Enter the amount of BTC you wish to withdraw

3) Then, click on “Withdraw” to complete the transaction

How to Use SAVM Bridge

Source: SatoshiVM Bridge

To deposit from the Ethereum network to SatoshiVM through the SAVM Bridge, follow these steps:

1) Connect a wallet

2) Select the token and enter the amount you wish to deposit

3) Then, click on “Deposit” to complete the transaction

To withdraw from SatoshiVM to the Ethereum network through the SAVM Bridge, follow these steps:

1) Connect a wallet

2) Enter the amount of SAVM token you wish to withdraw

3) Then, click on “Withdraw” to complete the transaction

SatoshiVM’s Partnerships

Source: @Portal_team/satoshivm-integrates-portal-defi-enabling-trustless-swapping-of-native-btc-with-native-cross-chain-be3dbd094555">Portal to Bitcoin

SatoshiVM has entered into a strategic partnership with Portal DeFi, a Layer 2 cross-chain swaps protocol that operates without bridges, custody, or wrapping. This collaboration will integrate the SAVM token into the Portal DEX Network, enabling cross-chain trading with native BTC, BRC-20s, and other native assets on Ethereum and other blockchains.

Regarding the partnership, the CEO of SatoshiVM expressed enthusiasm, stating, “I’m excited to see that we’ve entered into a strategic partnership with Portal Finance. They’ve got this super cool idea—‘no bridges, custody, or wrapping’—that’s got us really intrigued. It’s groundbreaking stuff, not just for BTC L2s, but for the cross-chain space too. Can’t wait for Portal DEX to go live, and we’re definitely open to exploring more ways we can team up with Portal down the line.”

In addition to Portal DeFi, SatoshiVM has also partnered with Supra Labs, Ordz Games, Ordigen, BitStable, and several others.

What is SAVM?

SAVM, the native token of SatoshiVM, is central to the SatoshiVM ecosystem, serving as both a governance and utility token. As a governance token, it allows members of SatoshiVM’s Decentralized Autonomous Organization (DAO) to vote on important aspects of the platform’s operations and rules. As a utility token, SAVM is used for most transactions, including payments, incentives, and rewards.

SAVM Tokenomics

Source: Coincarp

The total supply of SAVM tokens is capped at 21 million. Of the total supply, 36.5% was allocated for ecosystem development, 30% for liquidity, 15% for contributors, 15% to bootstrapping, 2% for Bounce Finance IDO, 1% to APE Terminal, 0.4% to MUBI farming pool, and 0.1% to BSSB farming pool.

Source: Coincarp

SAVM Utility

Being a digital currency and the governing currency on SatoshiVM, SAVM can be used for various purposes, which include:

Payment of Fees

The SAVM token is utilized for paying various fees (contract fees, transaction fees, bridge fees) on the SatoshiVM network. These fees, determined by network demand, supply, and governance decisions, are collected by validators. These validators offer services like generating and verifying proofs, as well as ordering and executing transactions within the ecosystem.

Staking

To become a validator, users of the platform are required to stake a certain amount of SAVM token and earn rewards from gas fees.

Governance

SAVM token holders govern the SatoshiVM ecosystem through voting on proposals conducted on the SatoshiVM DAO. These proposals can influence the protocol’s future, including upgrades and fee adjustments.

Is SatoshiVM (SAVM) a Good Investment?

SatoshiVM (SAVM) presents itself as a promising investment due to its innovative use of Zero-Knowledge Rollup technology, which enhances scalability and reduces transaction costs on the Bitcoin network. Strategic partnerships support the project and has significant potential for growth and adoption within the blockchain community.

However, potential investors should be cautious. The cryptocurrency market is inherently volatile, and SatoshiVM faces regulatory uncertainties and technical challenges. Additionally, the project must continually innovate to stay competitive in the crowded Layer 2 solutions space.

As with any investment, thorough research and consideration of personal risk tolerance are essential before investing in a SAVM token.

How to Own SAVM

You can buy SAVM from centralized and decentralized cryptocurrency exchanges. For example, Gate.io offers traders the SAVM/USDT trading pair. To own the token, create a Gate.io account, and complete the registration process. Also, you need to fund your spot trading account and go through the steps to buy SAVM.

Take Actions on SAVM

Check out SAVM price today and trade your favorite pair:

• SAVM/USDT