This is part 3 of 3 on bitcoin recursive inscriptions. You may wish to read part 1 of 3 and also part 2 of 3 first.
From EVM to BVM
The Ethereum Virtual Machine (EVM) is effectively the "computer" that exists between all Ethereum nodes and enables it to run smart contracts (which are programs). Recursive inscriptions on Bitcoin now enable a Bitcoin Virtual Machine (BVM) to similarly run smart contracts. It would mean stacking Lego bricks of code snippets in novel ways to build new applications and use cases. This ability is the new and potentially revolutionary component recursive inscriptions may allow.
Even more recently, on Oct. 9, 2023, an even newer development has popped up to allow for a Bitcoin Virtual Machine. This newest development is entirely independent of recursive inscriptions. It is called BitVM, see the whitepaper here. Or, read the articles on Coindesk or The Block. BitVM seems to hold the goal of creating a Turing-complete Bitcoin virtual machine. The creator posted on X/Twitter, "Any computable function can be verified on Bitcoin." That means that it would be able to run any smart contract without limits. Dev "Super Testnet" wrote, "This is probably the most exciting discovery in the history of bitcoin script."
This would be a huge step even beyond recursive inscriptions, if indeed it flies. Being able to run smart contracts on the world's most secure chain, Bitcoin, would be very attractive to many. Namely, I think of DeFi projects, but who knows what other endeavors would be drawn to a BVM?
Why would you want to run a Bitcoin VM?
Just because you can do something doesn't necessarily mean it should be done. For instance, I could try to do a double backflip off the roof of my house into the swimming pool, but I should not try that. (Plus, I have no pool, so...no.)
Why would someone go to all the trouble to run a VM on Bitcoin? I would think it would be cumbersome and tedious...chain-linking and leap-frogging inscriptions together in a hacked together mess. That's a legitimate question and concern.
But, this kind of circles back to one of the main benefits of blockchain technology. Though running things on a centralized, off chain, server would likely be faster and more efficient, you lose all of the benefits of a decentralized blockchain. Namely, with a blockchain, there is no single point of failure, there is no single entity to dictate rules or changes, abuse is not possible (or dang hard). And Bitcoin is largely considered the most robust and secure blockchain there is. In my mind, this is the number one reason why it is enticing to run things on a Bitcoin virtual machine...security and stability.
Of course, everything would not need to be on a BVM. Likely, most things would not need to be on Bitcoin and likely shouldn't. But, for things like DeFi and large scale monetary matters, a BVM may be the best place to be.
Power of Imagination
An odd thing about inscriptions is that they weren't supposed to happen. The Taproot upgrade of late 2021 opened the door to an unintended, unforeseen ability...to inscribe data onto sats. Currently, inscriptions are dominated by jpgs of silly things (have you seen inscription number 1?).
Now, with recursive inscriptions, I can only imagine what clever, unintended and unforeseen abilities and use cases will be conjured up and carried out.
Several javascript libraries have already been inscribed and are ready for use on RIs. The building blocks, the Legos, are currently being scattered across the blockchain floor, waiting for anyone to pick them up and start building with them.
Regarding BitVM, if it pans out as the whitepaper claims is possible, the things that could be done would be incredible. I immediately think of sidechains that could handle the bulk of a project's work, then auto-reconcile over to the main Bitcoin chain via smart contracts.
Frankly, the things that would be done in the future are things we have not even conjured up yet. Who knows what clever and amazing and currently unimagined things that will be built using this amazing Bitcoin tech?
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