Buidling on Bitcoin: Goshen's Bitcoin EVM Layer

As the pioneering blockchain, Bitcoin has long been associated with monetary transactions and value storage. However, recent developments such as the taproot upgrade are extending its capabilities into the world of decentralized applications (DApps) and smart contracts, areas previously dominated by Ethereum and its Ethereum Virtual Machine (EVM). Leading this evolution is the Goshen Network with its innovative Bitcoin EVM layer.

What could be the potential implications of this new layer? Utilizing the Ethereum Virtual Machine (EVM) to deploy decentralized applications (dApps) on the Bitcoin network could have a transformative effect on the space and offer a multitude of benefits:

Ethereum Compatibility: Bitcoin EVM is compatible with Ethereum dApps, as well as with its IDEs, and most wallet providers. This means developers can leverage their existing Ethereum-based tools and knowledge base to build and deploy dApps on Bitcoin.

Array of Development Tools: Bitcoin EVM provides an array of development tools to help developers scale their ideas. It supports all the familiar APIs and IDEs available on Ethereum, making the transition to Bitcoin EVM seamless for developers familiar with Ethereum development.

Reliable and Scalable Platform: Bitcoin EVM is a highly scalable, open-source programmable platform built for decentralized and enterprise-level applications. This makes it an ideal platform for deploying and running dApps.

Simplified Contract Function Calls: On Bitcoin EVM, there's no need to verify your contract to call its functions. This can simplify the development process and reduce the time and resources needed for contract deployment and interaction.

Bitcoin EVM Explorer Support: If you are deploying on one of the Bitcoin EVM public ledgers, you have access to the officially supported block explorer to index and pull blockchain data, which can be helpful for debugging and analysis1.

Understanding Goshen's Bitcoin EVM Layer

Goshen's Bitcoin EVM layer is a pioneering technology designed to extend the functionalities of Bitcoin beyond its original purpose. This groundbreaking initiative is anticipated to present numerous advantages, such as utilizing Bitcoin's Segregated Witness (SegWit) mechanism, which results in lower decentralized application (dApp) transaction fees compared to Ethereum. Additionally, Goshen's protocol offers seamless compatibility with the Ethereum ecosystem, which eliminates the need for the redevelopment of off-chain toolchains.

By integrating the EVM - Ethereum's runtime environment for smart contracts - into the Bitcoin network, Goshen is unlocking the potential for developers to leverage the benefits of both platforms. Developers can now build Ethereum-style DApps on the secure and trusted Bitcoin blockchain.

The Goshen protocol distinguishes itself from the Ordinals protocol by streamlining the process of data upload, thereby eliminating the need for two separate transactions (commit and reveal). This simplification improves user experience and facilitates toolchain construction. Additionally, the protocol ensures efficient control over assets deployed in the EVM, eliminating the necessity for split transactions commonly associated with BRC-20 tokens, even for basic transfers.

The Goshen's EVM layer is designed to incorporate two distinct types of EVM invoke actions: EVM call and EVM deploy. Goshen ensures compatibility with the Ethereum ecosystem by deriving the EVM address from the redeem script hash. Goshen's EVM Call and Deploy operations involve specifying the From Address, To Address, and Data parameters. Subsequently, these call and deployment actions are converted into witness data, which is encoded appropriately. This step holds great significance as it guarantees that the encoded data size remains within the permissible limits, ensuring the transactions maintain their integrity and efficiency.

The implementation of the Segregated Witness protocol serves the purpose of reducing transaction fees associated with Bitcoin. This protocol allows users to initiate Bitcoin transactions from a unique Pay-to-Witness-Script-Hash (P2WSH) address. Notably, the protocol enables the encoding of EVM, invoking transaction data within the witness data.

Potential of Goshen's Bitcoin EVM Layer

The introduction of Goshen's Bitcoin EVM layer presents a major shift in the blockchain landscape. Not only does it open up Bitcoin for DApp development, but it also creates an opportunity for a more unified blockchain ecosystem.

Developers can now harness the security of Bitcoin's Proof-of-Work consensus algorithm while enjoying the flexibility and functionality of the EVM. This combination could stimulate the development of a new generation of DApps that are secure, efficient, and capable of handling complex operations. The integration also has implications for interoperability, one of the biggest challenges in the blockchain space. By linking Bitcoin and Ethereum technical frameworks, Goshen's Bitcoin EVM layer is a major stride towards a more interconnected blockchain future.

The proposed EVM execution layer in the Bitcoin network is expected to overcome some of Bitcoin's functional limitations. Bitcoin, equipped with a scripting language, has certain functionality limitations compared to platforms like Ethereum, which offers robust smart contract capabilities. The disparity hampers the range of applications that can be built on the Bitcoin network. Therefore, the EVM execution application layer for Bitcoin is seen as a solution that enables users to interact directly with EVM smart contracts within the Bitcoin network.

The redeem script for EVM is an extended version of the standard redeem script, with a series of DROP opcodes appended to it. The provided examples showcase the utilization of an EVM-enabled version 0 Pay-to-Witness-Script-Hash (P2WSH) and an EVM-enabled 1-of-2 multi-signature version 0 P2WSH. These demonstrations highlight the versatility and functionality of the extended redeem script in enabling EVM capabilities within the Bitcoin network.

As a precautionary measure against potential Distributed Denial-of-Service (DDoS) attacks, the execution of the EVM does not incur additional fees. However, there is a cap on the execution gas, which is set at 10,000,000. This limitation ensures a balanced and secure execution environment while mitigating the risk of abuse or excessive resource consumption1.

The Road Ahead

As Goshen's Bitcoin EVM layer continues to develop and mature, it promises a host of new possibilities for blockchain developers and users alike. As we look towards the future of blockchain technology, the integration of the EVM into Bitcoin may well be a significant milestone, heralding a new era of innovation and interoperability.

Building on Bitcoin is no longer a question of feasibility but of creativity and ambition. As the Goshen Network exemplifies, Bitcoin's untapped potential is vast, and the emergence of its EVM layer could be the spark that ignites a new wave of blockchain innovation.

Some potential developments that might arise as a result of Goshen's Bitcoin EVM layer:

1. Cross-chain DApps

One potential outcome is the rise of cross-chain decentralized applications (DApps) that operate seamlessly on both Bitcoin and Ethereum. These DApps would be able to leverage the specific advantages of both networks, such as Bitcoin's security and Ethereum's speed and flexibility, to offer a superior user experience.

2. Hybrid Financial Instruments

Bitcoin's emergence as a platform for smart contracts could lead to the creation of new, hybrid financial instruments. For instance, we might see the development of Decentralized Finance (DeFi) applications that use Bitcoin as a store of value while implementing complex financial logic through smart contracts, akin to what we see today on the Ethereum network. This could create a more robust and diverse DeFi ecosystem.

3. Enhanced Scalability Solutions

To mitigate the potential performance limitations of building on Bitcoin, developers may come up with innovative scalability solutions. For example, Layer-2 scaling solutions, which facilitate off-chain transactions or computations, could become more sophisticated and widely adopted.

4. Interoperability Standards

As the development communities of Bitcoin and Ethereum come closer together, there could be a greater emphasis on developing interoperability standards. This could facilitate the exchange of value and information between different blockchains, contributing to the vision of blockchain interoperability where different chains can communicate and interact seamlessly.

5. More Inclusive Blockchain Development Ecosystem

With the ability to execute EVM-compatible smart contracts, Bitcoin could attract a wider range of developers to its ecosystem. This could lead to a more diverse and inclusive development community, ultimately resulting in a wider variety of applications that cater to a broader range of user needs.

6. Innovative Governance Models

The addition of smart contracts to Bitcoin could open up new possibilities for decentralized governance. We might see the emergence of Decentralized Autonomous Organizations (DAOs) on Bitcoin or innovative ways of implementing on-chain governance.

These are just a few possibilities. The integration of the EVM into Bitcoin through Goshen's layer could open up an array of opportunities and spark innovations that we can't even foresee yet. As with any technological evolution, the road ahead is likely to be filled with surprises.

Impact on Ethereum developers

Goshen's Bitcoin EVM layer presents Ethereum developers with a unique opportunity to explore a new development landscape. It gives them a chance to leverage the robust security of Bitcoin and its extensive network, potentially opening up their DApps to a wider user base and creating a diversified blockchain portfolio.

Positive Impacts:

Greater Security: Bitcoin's Proof of Work consensus is generally considered more secure than Ethereum's current Proof of Stake model (as of my knowledge cutoff in 2021). By developing DApps on Bitcoin, developers might offer their users greater security assurances.

Expanded User Base: With the Bitcoin EVM layer, developers could potentially access a wider user base, since Bitcoin has a larger network and wider adoption.

Familiarity of Tools: As Goshen's Bitcoin EVM is designed to be compatible with Ethereum's EVM, Ethereum developers would not have to learn a new language or development environment. This could make it relatively straightforward to adapt existing Ethereum DApps for Bitcoin.

Greater Diversification: By developing DApps for Bitcoin as well as Ethereum, developers can hedge their bets and avoid being overly dependent on the success or failure of one particular blockchain.

Negative Impacts: Early-stage Technology: As Goshen's Bitcoin EVM layer would be new and untested, there could be unforeseen bugs or security vulnerabilities. Early adopters often take on additional risk.

Potentially Lower Performance: Bitcoin's block time is significantly longer than Ethereum's, which could lead to slower transaction processing times. However, optimizations in Goshen's Bitcoin EVM layer could potentially mitigate this issue.

Regulatory Uncertainty: There may be different legal and regulatory considerations when developing DApps for Bitcoin, especially given the network's association with privacy and decentralization.

Market Acceptance: It remains to be seen how the market will react to DApps on Bitcoin. While Bitcoin has a large user base, those users are accustomed to Bitcoin as a store of value and may not be interested in DApps to the same extent as Ethereum's user base.

Overcoming Layer 2 limitations

The deployment of decentralized applications (dApps) on Bitcoin using the Ethereum Virtual Machine (EVM) could help address some of the limitations of Layer 2 solutions, but it may not completely overcome all limitations. This will largely depend on the specific implementation and how well it can leverage the strengths of both Bitcoin and Ethereum.

Layer 2 solutions are designed to alleviate the scalability issues of Layer 1 blockchains like Bitcoin and Ethereum. They do this by moving most transactions off the main chain, therefore reducing congestion and lowering fees. However, Layer 2 solutions also have their own limitations, such as added complexity, potential security trade-offs, and sometimes the need for users to trust additional third parties.In comparison, a Bitcoin EVM that allows for the deployment of dApps on Bitcoin might offer the following potential benefits:

Utilizing Bitcoin's Security: Bitcoin is known for its robust security, which is backed by a vast amount of computational power. If dApps could be deployed directly on Bitcoin in a secure way, they could potentially leverage this security.

Interoperability: A Bitcoin EVM could potentially offer better interoperability between Bitcoin and Ethereum ecosystems. This could make it easier for dApps to interact with both Bitcoin and Ethereum assets.

Leveraging Ethereum's Developer Ecosystem: As the Bitcoin EVM is compatible with Ethereum's developer tools, it could allow developers to leverage the mature developer ecosystem of Ethereum, which is a leading platform for dApps.However, it's important to note that a Bitcoin EVM would still need to address Bitcoin's own scalability issues. Bitcoin has a lower block capacity and slower block time than Ethereum, which can lead to congestion and high transaction fees. How well a Bitcoin EVM could address these issues would be a key factor in whether it can provide a viable alternative to Layer 2 solutions.

Conclusion

In summary, while Goshen's Bitcoin EVM layer offers exciting opportunities, Ethereum developers must approach it with a solid understanding of both the benefits and the challenges. As in any innovative field, a blend of ambition and caution, combined with a deep understanding of the technology and its implications, will be key to successful DApp deployment on Bitcoin.