The industry is realizing that Bitcoin was deliberately designed to prioritize simple, deterministic validation over complex on-chain execution. This design choiceThe industry is realizing that Bitcoin was deliberately designed to prioritize simple, deterministic validation over complex on-chain execution. This design choice

Why Bitcoin Prioritizes Simple Validation Over Complex Execution

2026/01/01 02:00

The industry is realizing that Bitcoin was deliberately designed to prioritize simple, deterministic validation over complex on-chain execution. This design choice minimizes resource requirements, preserves decentralization, and reduces systemic risk even if it means pushing complex logic, programmability, and heavy computation to higher layers or external systems.

How Bitcoin Avoids Complex State Transitions

The fundamental limitation of Bitcoin is its inability to run heavy verification logic at a low cost, a core constraint that every BitVM-based bridge must navigate. According to the GOAT Network post on X, to address these issues, they are introducing a BitVM2 design that will ensure disputes are affordable enough to be executed under real fee conditions. The security mechanism is addressed through optimistic verification using garbled circuits (GC).

This operator, which is set to launch soon, publishes the garbled-circuit artifacts off-chain, while committing only the relevant labels on-chain. If the computation is correct, no on-chain action will be required. Meanwhile, if something is wrong, a challenger does not need to replay an expensive computation on-chain. 

Instead, they produce a minimal fraud-proof to reveal the output “0” label that contradicts the operator’s claimed result. At that point, the on-chain step is about demonstrating a contradiction, which will reduce the cost of disputes and change the economics of security. 

A practical detail in BitVM designs is that the garbled circuit size matters, and pairing heavy verification can cause bloated circuits. To avoid this, BitVM2 integrates a designated-verifier SNARK, which reduces verifier complexity so that the garbled circuits remain within realistic size limits. For end users, the implication is that the cheaper, more reliable depute paths make it harder for the bridge to stall when the fees spike. 

Public Companies Are Becoming Bitcoin’s Strongest Buyers

While several projects are being introduced to improve the efficiency of Bitcoin, seasoned crypto expert and the founder of the Wealth Mastery Newspaper, Lark Davis, has revealed that many public companies are aggressively accumulating BTC. Currently, public companies collectively hold 1.09 million BTC, representing 5.1% of the total BTC supply, which is a new all-time high.

However, the latest major aggressive purchases have come from MicroStrategy and Metaplanet. Strategy just announced another 1,200 BTC purchase, pushing its total holdings to 672,000 BTC. Asia-based firm Metaplanet also bought an additional 4,200 BTC in December, bringing its total holdings to 35,000 BTC.

Bitcoin

Davis pointed out that other recent purchases have come from Cango Inc., Bitdeer Technologies, and Anap Holdings. While retail investors are demonstrating weakening sentiment, public companies or institutional investors continue to stack regardless of the ongoing market.

Bitcoin
Market Opportunity
Core DAO Logo
Core DAO Price(CORE)
$0.0968
$0.0968$0.0968
+0.83%
USD
Core DAO (CORE) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

The Channel Factories We’ve Been Waiting For

The Channel Factories We’ve Been Waiting For

The post The Channel Factories We’ve Been Waiting For appeared on BitcoinEthereumNews.com. Visions of future technology are often prescient about the broad strokes while flubbing the details. The tablets in “2001: A Space Odyssey” do indeed look like iPads, but you never see the astronauts paying for subscriptions or wasting hours on Candy Crush.  Channel factories are one vision that arose early in the history of the Lightning Network to address some challenges that Lightning has faced from the beginning. Despite having grown to become Bitcoin’s most successful layer-2 scaling solution, with instant and low-fee payments, Lightning’s scale is limited by its reliance on payment channels. Although Lightning shifts most transactions off-chain, each payment channel still requires an on-chain transaction to open and (usually) another to close. As adoption grows, pressure on the blockchain grows with it. The need for a more scalable approach to managing channels is clear. Channel factories were supposed to meet this need, but where are they? In 2025, subnetworks are emerging that revive the impetus of channel factories with some new details that vastly increase their potential. They are natively interoperable with Lightning and achieve greater scale by allowing a group of participants to open a shared multisig UTXO and create multiple bilateral channels, which reduces the number of on-chain transactions and improves capital efficiency. Achieving greater scale by reducing complexity, Ark and Spark perform the same function as traditional channel factories with new designs and additional capabilities based on shared UTXOs.  Channel Factories 101 Channel factories have been around since the inception of Lightning. A factory is a multiparty contract where multiple users (not just two, as in a Dryja-Poon channel) cooperatively lock funds in a single multisig UTXO. They can open, close and update channels off-chain without updating the blockchain for each operation. Only when participants leave or the factory dissolves is an on-chain transaction…
Share
BitcoinEthereumNews2025/09/18 00:09
Shanghai residents flock to sell gold as its price hit record highs

Shanghai residents flock to sell gold as its price hit record highs

The post Shanghai residents flock to sell gold as its price hit record highs appeared on BitcoinEthereumNews.com. Gold surged over the $5,500-per-ounce milestone
Share
BitcoinEthereumNews2026/01/31 01:48
Polygon Tops RWA Rankings With $1.1B in Tokenized Assets

Polygon Tops RWA Rankings With $1.1B in Tokenized Assets

The post Polygon Tops RWA Rankings With $1.1B in Tokenized Assets appeared on BitcoinEthereumNews.com. Key Notes A new report from Dune and RWA.xyz highlights Polygon’s role in the growing RWA sector. Polygon PoS currently holds $1.13 billion in RWA Total Value Locked (TVL) across 269 assets. The network holds a 62% market share of tokenized global bonds, driven by European money market funds. The Polygon POL $0.25 24h volatility: 1.4% Market cap: $2.64 B Vol. 24h: $106.17 M network is securing a significant position in the rapidly growing tokenization space, now holding over $1.13 billion in total value locked (TVL) from Real World Assets (RWAs). This development comes as the network continues to evolve, recently deploying its major “Rio” upgrade on the Amoy testnet to enhance future scaling capabilities. This information comes from a new joint report on the state of the RWA market published on Sept. 17 by blockchain analytics firm Dune and data platform RWA.xyz. The focus on RWAs is intensifying across the industry, coinciding with events like the ongoing Real-World Asset Summit in New York. Sandeep Nailwal, CEO of the Polygon Foundation, highlighted the findings via a post on X, noting that the TVL is spread across 269 assets and 2,900 holders on the Polygon PoS chain. The Dune and https://t.co/W6WSFlHoQF report on RWA is out and it shows that RWA is happening on Polygon. Here are a few highlights: – Leading in Global Bonds: Polygon holds 62% share of tokenized global bonds (driven by Spiko’s euro MMF and Cashlink euro issues) – Spiko U.S.… — Sandeep | CEO, Polygon Foundation (※,※) (@sandeepnailwal) September 17, 2025 Key Trends From the 2025 RWA Report The joint publication, titled “RWA REPORT 2025,” offers a comprehensive look into the tokenized asset landscape, which it states has grown 224% since the start of 2024. The report identifies several key trends driving this expansion. According to…
Share
BitcoinEthereumNews2025/09/18 00:40