Overview of RuneVM

Bitcoin has significantly transformed the financial ecosystem by introducing a decentralized, secure, and transparent form of digital currency. Despite its revolutionary impact, Bitcoin faces inherent limitations, such as low transaction throughput, limited scripting capabilities, and scalability issues. These challenges have spurred the development of Layer 2 solutions to extend Bitcoin's capabilities without compromising its core principles.

RuneVM is a pioneering Layer 2 protocol designed to address these challenges and enhance Bitcoin's functionality by leveraging zkSync technology and integrating with Bitcoin Runes. Unlike traditional Layer 2 solutions that primarily focus on Ethereum, RuneVM brings advanced virtual machine functionalities to Bitcoin, aiming to revolutionize the ecosystem with scalable and efficient decentralized applications (dApps) and smart contracts.

The primary objective of RuneVM is to create a seamless and efficient environment for dApps and smart contracts by leveraging native Bitcoin (BTC) as gas, thus bridging the gap between Bitcoin’s security and the advanced programmability of Layer 2 solutions. By integrating with Bitcoin Runes, RuneVM enhances liquidity and utility, providing a robust platform for various decentralized finance (DeFi) applications.

This documentation delves into the technical intricacies, mathematical foundations, and potential synergies between RuneVM and Bitcoin Runes. It provides a comprehensive guide for developers and crypto enthusiasts, detailing how RuneVM’s innovative approach addresses the key challenges faced by existing Layer 2 solutions and unlocks new possibilities for the Bitcoin network.