Integration with Bitcoin's UTXO Model

RuneVM's design ensures seamless integration with Bitcoin's existing infrastructure by leveraging the UTXO (Unspent Transaction Output) model. The UTXO model is foundational to Bitcoin's transaction architecture, allowing for precise tracking and verification of unspent outputs that can then be used as inputs in new transactions. This model provides transparency, traceability, and security, which are crucial for maintaining the integrity of Bitcoin.

By utilizing the UTXO model, RuneVM can interact directly with Bitcoin transactions, ensuring compatibility and efficiency. This integration facilitates the seamless transfer of assets between the Bitcoin mainnet and RuneVM. When Bitcoin is locked on the mainnet, corresponding tokens are minted on RuneVM, maintaining a one-to-one peg. This ensures that assets retain their value and security while being utilized within the RuneVM environment. This mechanism is essential for enabling complex financial applications, as it allows for the smooth flow of assets across different layers of the blockchain ecosystem.