Original: href="https://x.com/Justin_bons//1914744906679017587" rel rel="nofollow">Justin Bons
Translated by: Yuliya, PANews
The so-called "Bitcoin DeFi" simply does not exist. not exist. Whether it's BitVM, BitcoinOS, Rootstock, or Soveryn, these projects are either extremely centralized or impractical. After in-depth research, the truth is shocking, and many of these projects' promotions can almost be called fraudulent.
The Fundamental Reason Why Bitcoin Cannot Support DeFi
Bitcoin cannot achieve true DeFi because it lacks a Turing-Complete VM, simply put it, it can support complex smart contracts like Ethereumeum or Solana. This means that no matter how the project promotes it, Bitcoin does not have the core capabilities required for DeFi.
The "De" in DeFi represents "decentralization". Currently, all projects claiming to be "Bitcoin DeFi" are essentially centralized, which misleads users and has caused investors to lose hundreds of millions of dollars.
BitVM
BitVM claims to implement smart contracts on Bitcoin through "optimistic two two--party computation", similar to many Ethereum Layer 2 networks (ETH L2), involving a "prover" and a "verifier". However, unlike most centralized ETH L2s, BitVM is even more centralized because its "verifier" is also permission-based.
In most ETH L2s, like Optimism, users can still submit fraud proofs even if the centrcentralized "over to BitVM is different, with only a permitted "verifier", which essentially constitutes a highly centralized system.
In fact,, BitVM relies on two computers run by trusted parties selected by a single authority, which is almost the the most centralized form. Although BitVM2 plans to depermissionize the "ververis only possible after the initial setupup, with the initial configuration still requiring a group of permitted participants and needing a "1-of-n honest assumption". The current actual deployment makes these future promises seem irrelevant.
Moreover, the BitVM system is extremely inefficient because Bitcoin (BTC) lacks a Turing-Complete programming language, but theoretically can achieve any function through simple switches. BitVM tries to achieve this by concatenating opcodes in dispute situations and publishing them to using taproot transactions, using Boolean Logic to combine opcinto logic gates.. seems overly complex and inefficient.
Rootstock
Rootstock is a sidechain connected to BTC, focusing on smart contract functionality. However on permissioned federation" maintain two-oring2-way peg meaning this federation can censor or even steal user assets.
Although Rootstock is essentially no different from a bank, contradicting Bitcoin's decentralized intent, at least it honestly acknowleditsts its nature its introduction.
Sovryn
Sovryn is actually built on Rootstock, depending on its smart contracts and anchoring, and is therefore highly centralized.
However, on its website, it claims to be "decentralized" and provide "native Bitcoin transactions", which this is clearly misleading. worryteam behind been involved in the next project, BitcoinOS.<(Note: The translation continues in the same manner, above maintaining the original structure and technical terms while translating to English.)
This is a "Scam Cycle"
Projects surrounding Bitcoin DeFi have actually formed a "scam cycle": every few years, a new wave of projects claiming to "implement DeFi on Bitcoin" emerges, often raising hundreds of millions of dollars from investors. However, they quickly disappear due to technical bottlenecks and model vulnerabilities. Years later, new projects return, targeting a new group of investors unfamiliar with historical context.
These projects mostly exploit people's fantasy's about "D"eF", but the reality is that the Bitcoin protocol has seen almost no significant technical changes in the past decade. With so much capital and resources invested and still unable to achieve DeFi, it is hard to believe that the same code could "suddenly achieve" it.
Bitcoin DeFi is Just a Fantasy
Among all investigated projects, Soveryn and BitcoinOS are the most controversial, with extremely exaggerated propaganda completely obscuring the project's massive trade-offs and defects. Rootstock, while still a centralized solution at this. BitVM shows slight innovation, but still cannot escape its efficiency and structural limitations.
ironically, after in-depth research of BTC ecosystem L2 projects, one appreciates Ethereum L L2's transparency and self-critical spirit even more. The Ethereum ecosystem even has a dedicated "L2Beat" project to track risks and operational status of each L2, whereas Bitcoin L2 has almost no similar disclosure mechanism.In essence, the so-called "Bitcoin DeFi" does not exist. It lacks native support capabilities and has no realistic implementation path, being entirely a collective fantasy driven by greed, delusion, ignormuch like the myth once surrounding Bitcoin itself. We need not continue tolerating Bitcoin's mediocrity and stagnation. The current on-chain ecosystem already has genuine DeFi economy generating billions of dollars annually - instead of being obsessedessedessed fantasies, support the revolution.
