Purpose and Goals

Bitcoin, while renowned for its security and decentralization, faces significant challenges related to scalability and transaction throughput. The Bitcoin network can handle only a limited number of transactions per second (TPS), leading to congestion and high fees during periods of high demand. Additionally, Bitcoin's scripting language is limited, restricting the complexity of smart contracts that can be executed directly on the network. These limitations necessitate the development of Layer 2 solutions to extend Bitcoin's capabilities.

• Improve liquidity: One of RuneVM's primary goals is to tap into the vast liquidity available in the Bitcoin network. Bitcoin is the most widely adopted and valuable cryptocurrency, and leveraging its liquidity can significantly enhance the utility of decentralized applications (dApps) and smart contracts. By integrating Bitcoin Runes with RuneVM, we enable these assets to be used in a variety of financial applications, from lending and borrowing to trading and yield farming, providing a more fluid and efficient ecosystem for all users.

• Increase scalability: RuneVM aims to dramatically increase the scalability of the Bitcoin network. By leveraging zkRollups and zkSync, RuneVM processes transactions off-chain, reducing the load on the Bitcoin mainnet. This approach allows RuneVM to handle a much higher volume of transactions compared to traditional Ethereum Layer 2 solutions. By batching multiple transactions into a single proof, RuneVM ensures that the mainnet only needs to verify a small amount of data, thus enhancing overall network performance and scalability.

• Reduce gas fees: The introduction of Bitcoin Runes and BRC-20 tokens has added significant transactional weight to the Bitcoin blockchain, resulting in increased congestion and higher fees. This mirrors the challenges faced by Ethereum during periods of high demand, where gas fees can become prohibitively expensive. RuneVM addresses these issues by processing transactions off-chain through zkRollups, RuneVM significantly reduces the computational load and data requirements on the mainnet. This ensures that transaction fees remain low even as the network scales, making it a cost-effective solution for users. Using BTC as gas not only lowers costs but also aligns economic incentives with Bitcoin's inherent liquidity and value, mitigating fee spikes caused by increased use of Bitcoin Runes and BRC-20 tokens.

• Facilitate interoperability: RuneVM seeks to bridge the gap between Ethereum and Bitcoin, fostering greater interoperability between the two networks. Interoperability is crucial for unlocking the full potential of decentralized finance (DeFi) and other blockchain applications. By enabling seamless asset transfers and interactions between Ethereum and Bitcoin, RuneVM allows users to leverage the strengths of both networks. This opens up new possibilities for cross-chain applications, enhancing the functionality and reach of DeFi protocols.

• Enhance Security and Privacy: Security and privacy are paramount in the blockchain space. RuneVM enhances these aspects through the use of zkSNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge), which allow for the verification of transactions without revealing sensitive information. This ensures that transactions are both secure and private, protecting user data and maintaining the integrity of the network. The combination of zkSNARKs and Bitcoin’s robust security infrastructure provides a dual-layer security model that offers high assurance to users and developers.