Original article by Janos Nick, Blockstream
Original translation: Bai Ding, Faust, Geek Web3
Abstract: This article succinctly and pointedly points out how to make Bitcoin support ZK verification function. The specific topics involved include the functional defects of Bitcoin UTXO and scripts, Taproot and OP_CAT, and the general content of concepts such as BitVM and Chain State Proof. The article puts forward a relatively clear point of view:
The introduction of ZK into the Bitcoin protocol is an inevitable trend, and there are two routes for this: one is to allow Bitcoin scripts to directly support SNARK verification, which requires the use of OP_CAT opcodes, and the probability that OP_CAT will eventually pass is very high; the second route is based on BitVM and requires the introduction of fraud proofs. The ZeroSync team has also specifically proposed Chain State Proofs to reduce the cost of node clients verifying historical data.
Text: To better understand Bitcoin, wed better think of it as a social system. When Bitcoin was first launched, developers determined the software programs that Bitcoin nodes needed to run, just like determining a set of rules to be followed by a social system. The reason why Bitcoin, as a social system, can operate stably is that everyone has a certain consensus on key issues such as what is the essence of Bitcoin and what it should be. Of course, reaching consensus is not easy, and people still have extensive and evolving differences when facing the above issues.
This can be traced back to the historical origin of Bitcoin. When Satoshi Nakamoto released the Bitcoin white paper, he said: I am researching a new electronic payment system that is completely P2P and does not rely on any third party. This statement was published on the Cypherpunk mailing list (an email discussion group founded in 1992, composed of a group of cryptographers and technology enthusiasts who focus on privacy protection and cryptography technology).
However, Bitcoin limits data throughput at the product design level. The number of transactions that can be processed per unit time is limited. If the number of pending transactions increases rapidly, users will launch a price war in order to complete transactions quickly, and quickly increase the transaction fees. The single transaction with the highest transaction fee in the Bitcoin network occurred after the block reward was halved in 2024, and the transaction fee for a medium-priority transaction on the chain reached $150. It can be said that the expensive transaction fees of the Bitcoin network have become a problem.
In order to solve the transaction fee problem, people have invested a lot of resources in the development of the Lightning Network. However, according to a paper published in 2016, the Lightning Network can only support tens of millions of users in practice and cannot realize its vision of a global payment system.
In addition to the high transaction fees, there is another problem, which is that Bitcoin has never been able to achieve the anonymity it envisioned. Satoshi Nakamoto pointed out in the Cypherpunk email discussion group that Bitcoin has a privacy protection function and the transaction initiator can be completely anonymous. However, although the transaction initiator does not need KYC, the transaction data on the Bitcoin chain leaks a lot of information, which largely exposes user privacy.
Although some wallet clients with privacy features have solved the above problems to a certain extent, the developers of these wallet clients are facing threats of varying degrees. For example, the developer of the Samourai CoinJoin wallet was arrested by the FBI in April 2024, and a week later, the developer of the Wasabi wallet shut down their CoinJoin coordination component. Obviously, these so-called privacy wallets are not completely trustworthy.
In summary, many of Bitcoins concepts are still far from being realized, and related technologies are still under development. Even so, many people in the Bitcoin community still believe that the Bitcoin protocol design should remain unchanged, but there are also many people like me who are keen to make improvements to Bitcoin. So, in what direction should Bitcoin be improved?
There are many proposals in the Bitcoin community to solve the above problems. The ones with the best theoretical effects are probably related to ZK and SNARKs. With ZK and SNARKs, the following features can be achieved:
1. Significantly improve privacy: Use homomorphic Peterson commitments to significantly improve user privacy for transaction amounts and Range Proof (as done in Blockstreams Element sidechain); hide transaction traces through linkable signatures (such as Monero); and achieve truly private transactions (such as Zcash).
2. Improve transaction throughput
In fact, there are many technical means to solve the problems of Bitcoin, but why have these technologies not been added to the Bitcoin protocol until today? This is because the Bitcoin protocol is difficult to modify. There is no organization similar to the Ethereum Foundation in the Bitcoin ecosystem. Any modification of the protocol requires a high degree of consensus in the community, which involves a lot of gaming and checks and balances. Therefore, unlike Ethereum, which has an update of the EVM opcode every year, the Bitcoin protocol has changed very little since its inception.
In fact, it is a good thing that the protocol is difficult to modify to some extent. If it is easy to modify the Bitcoin protocol, it will also be easy to maliciously change and attack it. This leads to a question: What means can be used to improve the performance of Bitcoin without changing the design of the Bitcoin protocol?
To answer this question, we need to review our knowledge about Bitcoin. If we want to transfer Bitcoin to someone else, we need to create a transaction and broadcast it to the Bitcoin network. The output data of the transaction will indicate the amount of BTC transferred, and the BTC recipient can create a new transaction to spend the received BTC. After that, this new transaction will generate new output data and send BTC to others.
It should be noted here that Bitcoin does not have a global state like Ethereum, especially no account state, only transaction output data. The output of each transaction has two states: spent by the recipient or unspent. The unspent transaction output is the UTXO we are familiar with.
Of course, in addition to the associated BTC amount, each transaction output has an additional program written in a language called Bitcoin Script. Whoever can show the correct proof Witness to this program can spend the transaction output (UTXO). Bitcoin Script itself is a stack-based programming language that contains a series of opcodes. The additional program of the aforementioned UTXO often consists of multiple opcodes, which complete the calculation based on the stack and put the result back on the stack.
There are many types of common Bitcoin scripts, which have existed since the beginning of Bitcoin. For example, the most common script program in Bitcoin consists of a public key + an opcode for checking a digital signature. The opcode stipulates that in order to spend/unlock a certain UTXO, the digital signature of the corresponding public key must be presented.
Here we summarize the functions of Bitcoin script. First of all, what can Bitcoin script do?
· The stack can be rearranged, equality checking (using equality checking to verify whether specific conditions are met to ensure the security and validity of transactions), and branching operations similar to if-else can be performed.
· Limited arithmetic operations can be performed on 32-bit numbers, namely addition and subtraction.
Data can be hashed, and ECDSA and Schnorr signatures can be checked.
What can’t Bitcoin Script do?
There are no loops, jumps, or recursion, which means it is not Turing complete and has very limited programming capabilities.
No bitwise operations. No opcodes for multiplication and division.
Elements on the stack cannot be concatenated.
There is little to no ability to read and inspect on-chain transaction data.
Bitcoin scripts cannot directly access the amount of each transaction, nor can they pass status (UTXOs are one-time use, and each transfer destroys the old one and generates a new one).
In the early versions of Bitcoin, some of the things that the above scripts cannot do can actually be done, but some functions were later disabled by Satoshi Nakamoto because he found vulnerabilities in these opcodes. For example, the opcode OP_CAT, which can merge two elements in the stack, can be used to remotely attack Bitcoin nodes and cause them to crash. Out of caution, Satoshi Nakamoto disabled OP_CAT, and some other opcodes were also disabled.
So, can Bitcoin script verify SNARK? Although Bitcoin script is not Turing complete in theory, its basic operations are sufficient to verify any calculation. However, in practice, SNARK verification is still impossible because the program size required for the verification step exceeds Bitcoins maximum block limit of 4MB.
Perhaps we can try to perform arithmetic operations in large finite fields, but the cost is very high. For example, the multiplication of two 254-bit integers implemented by BitVM has a related Bitcoin script size of nearly 8KB.
Moreover, verifying Merkle proofs without OP_CAT is also expensive because it requires operations similar to for loops.
So back to the previous question: why cant we simply change the Bitcoin protocol and add more powerful opcodes?
As mentioned before, it is very difficult to reach a majority consensus on new protocol rules because there is no centralized decision-maker in the Bitcoin ecosystem. Any proposal to improve the Bitcoin script will have many objections, and everyone has different positions and perspectives. In the Bitcoin network, there is no good way to measure whether the community has reached a majority consensus. In this case, forcing an update will lead to a chain fork.
Of course, Bitcoin is not completely immutable, with recent updates being SegWit in 2017 and Taproot in 2021.
The Taproot upgrade changed many rules. It took three and a half years from theoretical release to actual activation. The key factor in enabling Taproot is that it does not change the existing security assumptions and makes significant improvements to the Bitcoin protocol. For example, it allows the use of Schnorr signatures instead of ECDSA. Both are based on the discrete logarithm assumption and use the same elliptic curve, but the former is more efficient and requires less computation than the latter.
Furthermore, Taproot’s improvements to Bitcoin can be divided into three parts:
First, Taproot reduces the verification cost of scripts with a large number of selective branches, allowing Bitcoin to support more complex programs;
Second, Taproot reduces the amount of script data that needs to be revealed on the chain. You can assemble multiple scripts into a Merkle tree, with each script located on a different leaf. If you want to trigger a script, you only need to reveal the leaf where it is located and the Merkle proof.
Third, Taproot also adds other mechanism designs.
Then again, since Bitcoin has a precedent for adding more powerful features like Tarpoot, why not add a dedicated opcode to verify SNARKs? This is because adding a so-called OP_SNARK opcode is very different from the Taproot upgrade.
First, there are many design ideas for OP_SNARK, and it is difficult to get the majority of people to support a single solution; second, if such a proposal is passed, all Bitcoin nodes must support this specific OP_SNARK solution, which will add a huge technical burden.
In addition, the complexity of OP_SNARK itself is also a challenge. If the test is not included, Taproot only adds about 1,600 lines of code, which is acceptable to people, while the code contained in OP_SNARK is much more complicated.
In addition, who will review whether the OP_SNARK opcode should be activated? How to get consensus in the Bitcoin ecosystem when few people understand its details? These are all questions. Therefore, on the whole, the OP_SNARK upgrade will not happen in a short time.
However, there are other ways to verify SNARKs in Bitcoin Script. We can make Bitcoin Script more powerful by adding simpler opcodes, allowing people to implement SNARK verifier programs in the script. But in fact, it is very difficult to write SNARK verifiers in the Bitcoin Script language.
Therefore, the Blockstream research team is developing Simplicity, a programming language designed to replace Bitcoin Script. Simplicity is designed specifically for blockchain consensus systems and is intentionally not Turing-complete, making it easy to statically analyze and formally verify.
Next we are going to talk about a very simple but heavyweight proposal that can make Bitcoin scripts more powerful, namely the OP_CAT opcode. As mentioned earlier, OP_CAT existed in the original version of Bitcoin, but this opcode can cause Bitcoin nodes to be attacked by DOS under certain conditions, so it was disabled by Satoshi Nakamoto. Now some people in the Bitcoin community want to re-enable it.
What OP_CAT does is pop the top two elements of the stack, concatenate them, and then put them back on the stack. This sounds very simple, but it brings huge functional improvements to Bitcoin Script.
For example, Bitcoin script programs originally could not access the amount of transactions on the chain, but with OP_CAT, this becomes possible; OP_CAT can also be used to verify Merkle proofs. In short, OP_CAT is an upgrade at the underlying opcode level, which will derive many new functions. Many people have proposed the effects that can be achieved by using OP_CAT.
Does OP_CAT help verify SNARKs in scripts? The answer is yes, because supporting the verification of Merkle proofs helps verify FRI-based SNARKs, and OP_CAT can support this. In the past, script programs involving SNARK verification may be too large to be included in the Bitcoin block, but with OP_CAT, the program size can be compressed.
OP_CAT has been discussed for many years, and more and more people are aware of its role in transaction inspection (introspection). Compared with other proposals, OP_CAT has the advantage that it has existed in Bitcoin scripts before, so it is easier to reach consensus in the community. However, after OP_CAT is enabled, it may also cause some peoples MEV benefits to be damaged, so the Bitcoin community has not yet reached a consensus on it.
In summary, Bitcoin may have a potential path to enable SNARKs to be verified in Bitcoin scripts by enabling simple opcodes such as OP_CAT. It is also worth mentioning that there is a recent proposal called Great Script Restoration that enables multiplication opcodes, allowing all arithmetic opcodes to operate with arbitrary precision.
In addition, when we consider the impact of OP_CAT on the Bitcoin network, we can examine the impact on Bitcoin node operators after its passage. In order to make Bitcoin censorship-resistant and decentralized, the Bitcoin community hopes that as many people as possible will run nodes to verify data. If Bitcoin supports SNARK verification operations, the cost of running Bitcoin nodes will not increase significantly, which will not do much harm to the security and censorship resistance of Bitcoin.
Currently, a Bitcoin block can contain up to 4MB of data. It is expected that one block will be mined every 10 minutes, and almost all blocks can be filled with Bitcoin scripts and Witness witnesses (similar to digital signatures). In other words, each block can currently contain up to 80K signature verifications, and each block supports an average of 7K to 10K signature verifications. My 2020 Intel CPU takes an average of 3.2 seconds to verify a Bitcoin block. Of course, it is not only the time taken for signature verification that affects the speed of block verification.
In addition, if Bitcoin transactions support ZK in the future, it seems harmless even if the transaction generation time is extended. For hardware wallets used for long-term storage of assets, they often have screens and are not large in size. Their function is to store keys and generate signatures. The CPU of hardware wallets is generally weak, such as a 240MHz dual-core CPU with a certain amount of memory, and they respond very quickly when signing Bitcoin transactions.
I did a little survey asking users what the longest delay they would accept for a signature device to generate a proof, and many people are fine with a longer wait, especially when there is a significant benefit to be gained, so if we introduce ZK into Bitcoin transactions, it doesn’t seem like too much trouble.
We have spent a lot of time discussing how to change the underlying design of Bitcoin, but there are actually many application scenarios that can be implemented without changing Bitcoin. Here I would like to emphasize an application related to BitVM - Chain State Proofs, which combines ZK to prove the validity of block hashes.
What changes has this technology brought to Bitcoin? First, with Chain State Proofs, the synchronization and verification workload of Bitcoin history data can be compressed, greatly reducing the cost of running nodes. Currently, it takes 5 hours and 30 minutes to synchronize and verify from the genesis block to the latest Bitcoin block on a device with good hardware, and it takes several days on a Raspberry Pi-level device. If state proofs are introduced, this time can be greatly compressed. Secondly, chain state proofs are an important part that can be used with BitVM, which will promote the implementation of BitVM.
The ZeroSync team conducted in-depth research on Chain State Proofs and created a lighter header chain Proofs. This solution, combined with ZK, only proves the validity of the Bitcoin block header, thereby forming a header chain containing all 850,000 block headers in Bitcoins history and generating an 80-byte hash for each block header.
This scheme requires double SHA-256 calculations for each Bitcoin block header to verify the corresponding PoW proof. ZeroSync uses STARKs to generate Bitcoins header chain Proof. The cost of generating the proof is about $4,000, and it only takes 3 seconds to verify the proof with my browser.
However, since it does not include the verification process of the transaction content in the block, the header chain proof can only assume that the blockchain with the most POW proofs is valid, and by default, the Bitcoin client synchronizes the latest block on this chain. In this scenario, although the attacker can create a block containing invalid transactions, add more blocks after this block, and generate a header chain proof to deceive the Bitcoin client that synchronizes historical data, doing so will be extremely expensive and will be directly exposed by existing Bitcoin full node clients.
However, despite the low success rate of this attack scenario, if it allows attackers to steal huge amounts of BTC, then the header chain proof cannot be considered a foolproof solution. If we want to prove the complete chain state, we need to directly prove that all the contents of the Bitcoin block are valid, including ECDSA and Schnorr signature verification based on the secp256k1 elliptic curve.
Bitcoins historical blocks each month can contain 30 million signatures, a total of 2.5 billion signature operations, and a large number of SHA-256 operations. As a result, the Bitcoin network generates about 7GB of block data each month, and all historical data totals more than 650GB. In reality, this number may be 2 to 3 times higher.
Now lets look at BitVM. BitVM enables Bitcoin to verify any computing task and is the best way to implement SNARK verification without changing the protocol. BitVM uses two technologies to circumvent the Bitcoin block limit on script size. First, it uses the Taproot MerkleTree script structure;
Secondly, it enables a KV storage solution that can be accessed across a single script, allowing connections to a super large number of script programs. However, the Bitcoin protocol does not enforce the integrity of the above KV storage solution. BitVM needs to check malicious Prover through fraud proof. If the Prover publishes an invalid statement or problematic KV storage, others can initiate a transaction on the Bitcoin chain to indicate that the Prover behaved improperly and take away its previously pledged assets.
To sum up, Bitcoin is facing major challenges, and people have proposed various solutions to solve these problems. However, these proposals will not be adopted by the Bitcoin community quickly, and changes to the protocol cannot be completed in the short term. This is both a good thing and a bad thing. It also means that Bitcoin is decentralized and relatively secure.
Many people in the Bitcoin community are excited about the potential of SNARK/STARK. The most feasible way to implement SNARK verification in the medium and long term is likely to be BitVM, but it will require more RD investment to work in practice;
Re-enabling the OP_CAT opcode is also an idea, but it is necessary to prove that the benefits of restarting the opcode far outweigh the risks, and investigate which simple opcodes can allow SNARK verification in Bitcoin scripts, or explore what scenarios can be achieved with functions similar to OP_CAT. Regardless of which solution is chosen, the ultimate goal of the Bitcoin community must be to make the product practical and support more feasible scenarios.
