BitVM smart contract system now supported by 31.5% of Bitcoin's total hashrate

This development is a major step toward enabling smart contracts directly on the Bitcoin blockchain.

Major Bitcoin (BTC) mining pools now support the BitVM smart contract system, according to an announcement by Bitlayer.

Antpool, F2Pool, and SpiderPool are among the mining pools that will be deploying the BitVM system, which could pave the way for smart contracts to be deployed directly on the Bitcoin blockchain.

"We will act as a bridge operator to support innovation on Bitcoin while safeguarding miners' interests," said Antpool CEO Andy Chow.

BitVM, which stands for Bitcoin Virtual Machine, is a framework that enables Bitcoin to handle complex smart contracts without needing to change its base protocol. It works by performing computations off-chain and verifying them on-chain, similar to optimistic rollups used in other blockchain ecosystems.

This framework could open up possibilities for Bitcoin users to access decentralized finance (DeFi) tools and layer-2 networks, according to Bitlayer.

According to Chow, this could increase network activity and generate more transaction fees, which are becoming increasingly important for miners as block rewards decrease over time.

For BitVM to function, miners need to include special Taproot-based transactions in blocks that contain interactive verification logic. Without the support of mining pools to prioritize these transactions, the system would not work.

However, current data from Bitcoinshashrate.com shows that Antpool, F2Pool, and SpiderPool control 17.2%, 8.2%, and 6.1% of Bitcoin's hashrate, respectively. Together, they account for about 31.5% of the total hashrate.

This is enough for BitVM transactions to be included in about one out of every three blocks, making it suitable for testing and early-stage applications.

A Bitlayer representative said that they are prepared if support drops or if Bitcoin Core policy changes. They plan to expand partnerships with more mining pools to maintain and grow network support.

This development is a significant step in Bitcoin's evolution, bringing smart contract capabilities closer to realization while staying true to the network's existing rules and spirit.