Bitcoin Developers Explore ZK Proofs for DeFi Expansion Without Forks
Bitcoin developers are exploring the integration of zero-knowledge (ZK) proofs to enhance DeFi functionalities, which currently necessitates a soft fork for implementation. Edan Yago, a Bitcoin veteran, highlights the challenges of forking a blockchain valued at $2 trillion, comparing it to open-heart surgery.
Key points include:
- A fork is a change in a blockchain's code that creates a separate path.
- Soft forks allow interaction with older versions; hard forks do not.
- ZK proofs enable privacy-preserving validation of statements but are not yet available on Bitcoin.
- Proposed implementations like OP_CAT and OP_CTV could introduce ZK functionality through a fork.
- Yago emphasizes the need for developers to find alternative methods without forking.
- The BitSNARK protocol from BitcoinOS provides ZK verification capabilities on Bitcoin, enabling cross-chain interactions.
- BitSNARK can compress complex computations into 300 bytes, facilitating BTCFi developments such as decentralized exchanges and BTC-backed stablecoins.
Various projects aim to implement DeFi on Bitcoin using OP_CAT or OP_CTV, but Yago advocates for achieving similar outcomes without a fork.