What Is SatoshiVM?
SatoshiVM is a Bitcoin ZK Rollup Layer2 that integrates BTC as gas and seamlessly links the EVM with Bitcoin. It’s a technology that aims to solve the scalability and transaction speed issues of Bitcoin while maintaining its security and decentralization. SatoshiVM has the potential to alter the crypto landscape by enabling the creation of decentralized applications on Bitcoin, like those on Ethereum and another smart contract network. Despite using BTC for gas, the project does have a native ERC-20 token, SAVM, which was airdropped to users in early 2024, but its use cases are not entirely clear.
Key Takeaways
- It is a decentralized Bitcoin ZK Rollup Layer2 that integrates BTC as a gas token.
- SatoshiVM seamlessly integrates the Ethereum Virtual Machine (EVM), the underlying technology powering most Ethereum applications, with Bitcoin.
- It has the potential to revolutionize the crypto landscape by enabling the creation of decentralized applications on Bitcoin that rival those on Ethereum.
- The project’s native SAVM token was listed on BitMart and UniSwap in January 2024, but its value proposition is unclear.
- The team is undoxxed meaning we don’t know who is actually behind it.
What Is The History of SatoshiVM?
The history of SatoshiVM can be traced back to early 2023, when a group of unidentified developers began exploring the potential of utilizing ZK Rollup technology to address the scalability and transaction speed limitations of Bitcoin.
In July 2023, the SatoshiVM project was officially announced, marking a significant milestone in the development of this innovative technology. The project’s whitepaper outlined its ambitious vision of seamlessly integrating the Ethereum Virtual Machine (EVM) with Bitcoin, enabling the deployment and execution of Ethereum-based applications on the Bitcoin blockchain.
In December 2023, they successfully launched the SatoshiVM testnet, providing a platform for developers to test and experiment with their applications on the Bitcoin Layer21.
The launch of the SatoshiVM testnet marked a crucial step in the project’s development, demonstrating the feasibility of its technology and gathering valuable feedback from the community. With the testnet proving successful, the SatoshiVM team is now believed to be focused on completing the mainnet release, which is expected to occur in early 2024.
By leveraging the security and decentralization of Bitcoin, SatoshiVM aims to provide a platform for developers to create innovative and scalable applications that can compete with those on Ethereum. However, we don’t know who’s behind the project, which is always a red flag in crypto.
How Does SatoshiVM Work?
SatoshiVM is a decentralized Bitcoin ZK Rollup Layer2 that utilizes a unique approach to integrating the EVM with Bitcoin. The core mechanism of SatoshiVM involves two distinct blockchains: the Bitcoin mainnet and the SatoshiVM Layer22.
Bitcoin Mainnet:
The Bitcoin mainnet serves as the foundation of SatoshiVM, providing the underlying security and decentralization that are essential for Bitcoin’s value proposition. Transactions on the Bitcoin mainnet are processed using the Bitcoin protocol, which prioritizes security and immutability.
SatoshiVM Layer2:
The SatoshiVM Layer2 is a parallel blockchain that operates on top of the Bitcoin mainnet. This Layer2 utilizes ZK Rollup technology to aggregate and batch transactions into succinct proofs, reducing the computational burden on the Bitcoin mainnet. The Layer2 also introduces the EVM, allowing developers to deploy and execute Ethereum-based applications on Bitcoin.
Integration of EVM with Bitcoin:
The key innovation of SatoshiVM lies in its seamless integration of the EVM with the Bitcoin network. This integration is achieved through a process called “chain linking”, which establishes a secure and trustless connection between the two blockchains3.
In essence, SatoshiVM acts as a relay between the Bitcoin mainnet and the Layer2, enabling the transfer of transactions and assets between the two networks. Transactions initiated on the Layer2 are cryptographically linked to the Bitcoin mainnet, ensuring that they are secure and irreversible.
Utilization of BTC as Gas:
SatoshiVM employs BTC as the primary gas token, the fee paid for executing transactions and computations on the Layer24. This approach leverages the established value and liquidity of BTC, providing a stable and secure payment mechanism for Layer2 activities.
Scalability and Transaction Speed:
By offloading computation and storage from the Bitcoin mainnet, SatoshiVM significantly improves the scalability and transaction speed of Bitcoin. Transactions on the Layer2 can be processed much faster than on the mainnet, enabling a broader range of applications and a more user-friendly experience.
Unlocking New Applications:
The integration of the EVM with Bitcoin opens up a vast new realm of possibilities for decentralized applications on Bitcoin. Developers can theoretically create Ethereum-based applications that leverage the security and decentralization of Bitcoin.
What Are The SatoshiVM Bridges?
SatoshiVM bridges facilitate the seamless transfer of assets and data between the Bitcoin and Ethereum blockchains. These bridges are crucial for SatoshiVM’s ability to integrate the EVM with Bitcoin, enabling developers to deploy and execute Ethereum-based applications on the Bitcoin blockchain.
There are two primary types of SatoshiVM bridges:
- Bitcoin-to-SatoshiVM Bridge: This bridge allows users to transfer Bitcoin (BTC) from the Bitcoin mainnet to the SatoshiVM Layer2. This process is typically initiated by sending BTC to a bridge smart contract on the Bitcoin blockchain, which then deposits the equivalent amount of tBTC into the user’s wallet, which can be used on the test net.
- SatoshiVM-to-Ethereum Bridge: This bridge enables the transfer of assets and data from SatoshiVM to the Ethereum mainnet. This process involves sending ETH from the SatoshiVM Layer2 to a bridge smart contract on the Ethereum blockchain, which then mints the equivalent amount of tSAVM on the testnet.
What Problem Does SatoshiVM Solve?
SatoshiVM addresses the scalability and transaction speed limitations of Bitcoin by utilizing ZK Rollup technology to aggregate and batch transactions into succinct proofs, reducing the computational burden on the Bitcoin mainnet. This allows for faster transaction processing and a broader range of applications.
Additionally, SatoshiVM integrates the EVM with Bitcoin, enabling developers to deploy and execute Ethereum-based applications on the Bitcoin blockchain, unlocking a vast new world of possibilities for decentralized applications.
| Feature | Description |
|---|---|
| ZK EVM | SatoshiVM is a ZK Rollup that utilizes the EVM for off-chain computations. This facilitates seamless interaction with Ethereum applications. |
| ZK Rollup | SatoshiVM employs Rollup technology to bundle transactions and validate them on the Bitcoin main network as a single transaction. This ensures security and immutability, guaranteeing data integrity and availability. |
| ZK Fraud Proofs | SatoshiVM leverages Taproot and Bitcoin Script technologies to validate contracts on-chain without altering the Bitcoin network’s consensus rules, enabling fraud proof computation. |
| Data Availability | SatoshiVM publishes transaction data on the Bitcoin main network, empowering anyone to verify the correctness of computations executed off-chain. |
| BTC Native Gas | SatoshiVM utilizes native BTC as gas for the EVM, mirroring how ETH OP Rollup and ZK Rollup Layer 2 solutions employ ETH for Layer 2 transactions. |
What Are The Tokenomics of the SatoshiVM (SAVM) Token?
SatoshiVM (SAVM) is the native token of the SatoshiVM along with BTC. As BTC is the project’s official native crypto, the actual function of SAVM isn’t entirely clear. However, the team has provided some information about the crypto, and since listing on BitMart5, its 24-hour trading volume has exceeded $30 million.
SAVM was airdropped to eligible on January 19 to users who interacted with the project’s Bitcoin testnet6. The team announced on X that the token had been listed on UniSwap on January 19th, but it really isn’t clear what the token actually does. If BTC handles the transaction fees, then maybe SAVM will be a governance token. For now, we can only speculate on its utility. There’s already been some controversy around the token, as an anonymous trader used a sniping bot to turn $680,000 into over $6 million hours after the launch7.
According to CoinGecko8 and the official website, the total supply of SAVM tokens is 21 million. The official distribution plan can be found in the image below. Again, the official docs fail to explain the use cases of the token, but it does suggest they will be used to give grants to developers and pay for marketing.
Final Thoughts on SatoshiVM
SatoshiVM is a Bitcoin ZK Rollup Layer2 solution that has the potential to address the scalability and transaction speed limitations of Bitcoin while maintaining its core principles of security and decentralization. The project has recently launched its test net, and its main net is expected to go live in early 2024. While the token SAVM was recently listed on exchanges, its use cases are still not fully clear, and the fact that we don’t know anything about the team behind the project is concerning, even if the project’s use cases are extremely interesting.
Frequently Asked Questions
What is SatoshiVM?
SatoshiVM is a decentralized Bitcoin ZK Rollup Layer2 solution designed to address the scalability and transaction speed limitations of Bitcoin. It integrates the Ethereum Virtual Machine (EVM) to enable the deployment and execution of Ethereum-based applications on the Bitcoin blockchain. The project uses BTC as gas and has introduced its native ERC-20 token, SAVM.
When was SatoshiVM introduced?
The SatoshiVM project was officially announced in July 2023, with the development team focusing on leveraging ZK Rollup technology to enhance Bitcoin’s capabilities. The testnet was successfully launched in December 2023, and the mainnet release is expected in early 2024.
What is the SAVM token, and what is its utility?
SAVM is the native ERC-20 token of the SatoshiVM project. While its exact utility is not entirely clear, it has been airdropped to users and listed on exchanges like BitMart and UniSwap. It is speculated to potentially serve as a governance token or be used for grants to developers and marketing efforts within the SatoshiVM ecosystem.
WRITTEN
Peter Barker
Peter is an experienced crypto content writer and a DeFi enthusiast with more than 3+ years of experience in the space. Previously a journalist and news editor at a leading European news sourcing agency.
