Understanding Trustless Computer
May 19th, 2023

Trustless Computer expands Bitcoin's capabilities,allowing for the creation of decentralized applications based on itThis opens up new horizons for the use of Bitcoin beyond simple currency

Trustless Computer is a level 1 protocol,which aims to make Bitcoin much more universal - suitable for much more,rather than just currencyIt allows developers to create DAOs,DEX,NFT,tokens,auctions,credit,data storage and many other use cases on BitcoinBitcoin is widely recognized as the most secure blockchain due to its resistance to external interferenceHowever, the protocol data format is limitedpreventing the expansion of its secure functions to other applicationsThanks to Taproot transaction type, now any data can be embedded in the Bitcoin blockchain,which will be constantly stored in the Bitcoin network and inherit its featuressuch as availability,immutability and determinismThis embedding method enables the development of new protocolsTrustless Computer is working on implementing a virtual machine with a full computational model,working on top of the Bitcoin networkTrustless Computer allows developers to create decentralized applications on Bitcoin

Architecture

BVM is a state machine,similar to Ethereum-VM,which uses the Bitcoin blockchain as a data layer to achieve transaction-level consensusThis approach allows BVM to function as a universal state machine,using the security and availability of Bitcoin's blockchain data,without additional modules,such as network or consensus protocolsImportant components include the local transaction pool (mempool),a virtual machine in the style of Ethereum,TxWriter and TxReader

VM

BVM is a compatible Ethereum virtual machineThe framework is configured to support large transaction sizes and increased gas limits in blocks,which allows us to support more diverse types of applications

Local mempool

Each node in the system maintains a set of transactions,that the user sends to the node in the local transaction pool (mempool)The transaction pool helps to verify the validity of the transaction before recording it to the Bitcoin network

This transaction pool is local, since it does not communicate with other nodesA transaction becomes publicly available only after it is written to the Bitcoin blockchain (using TxWriter) and spread across the Bitcoin network

TxReader

This module filters BVM transactions in each new Bitcoin block and maintains BVM state consistent among all BVM nodes in the network,even in the event of a reorganizationFor each Bitcoin block, the BVM first filters BVM transactions,sorts them by gas fees,and then imports them into the VM as a BVM block in a deterministic order. As Bitcoin has an immutable,determined order,each BVM node,which works with honest code,it will have the same stateBitcoin reorg is a process,where two or more miners simultaneously add different blocks to the blockchainThis can lead to blockchain forks,where different parts of the network have different versions of the blockchainTxReader is designed to handle Bitcoin reorganization by resetting BVM state to the moment of fork and re-importing valid blocks into the returned state

TxWriter

TxWriter allows embedding BVM transactions in Bitcoin transactionsFor this, we use a similar technique,which Ordinals use to enter data into the Bitcoin network

The main difference between Ordinals and Trustless Computer is that Ordinals allow individuals to embed data,such as images and texts,in Bitcoin,while Trustless Computer allows developers to deploy programs,smart contracts and decentralized applications (DApps)

The essence is that it points to a witness/script hash for spending,BVM transaction data is embedded in the Bitcoin transaction via the witness data fieldThis embedding occurs in such a way that,in order not to affect the verification process and not to affect transaction logicThe witness data field only serves as an unlocking script for the previous outputA two-phase transaction process is required to add data to a Bitcoin transactionThe first phase is a commit transaction,which includes creating an unspent transaction output (UTXO),containing the BVM transactionIn the second phase,the revealing transaction reveals the witness data/script,but extends its functionality beyond simple currency

Conclusion

Ultimately,thanks to Trustless Computer,Bitcoin becomes a much more flexible platform,capable of supporting various types of applicationsThis opens up new possibilities for developers,enabling them to create decentralized applications,smart contracts and DAO based on the Bitcoin networkBVM,as a state machine,uses the Bitcoin blockchain to achieve consensus,while TxWriter and TxReader provide the ability to embed and filter BVM transactions within Bitcoin transactionsThis approach not only preserves the security and accessibility of Bitcoin's blockchain data,Thus, Trustless Computer opens up new possibilities for using Bitcoin and strengthens its role in the world of decentralized applications and financial innovations

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