How should we view ZKM entering the BTC L2赛道?

Author: Lanhu Notes

Seeing ZKM enter the BTC L2 space, this sector is likely to become as crowded as Ethereum's L2 landscape. The final market structure will depend on how technology and market dynamics evolve.

At its core, ZKM is built on zkVM technology, aiming for its zkVM to be widely adopted across various projects and ecosystems, ultimately becoming foundational infrastructure. For example, it could connect assets from different networks—such as Ethereum, Bitcoin, and Cosmos—enhancing liquidity across them. This broader vision helps explain why ZKM has entered the BTC L2 race.

From a technical standpoint, ZKM’s solution centers around two key components: the "Entangled Rollup Architecture + zkVM." These address two major market concerns: first, how to ensure asset security; second, how to achieve long-term network sustainability.

Given current market focus on cross-chain security, ZKM introduces the "Entangled Rollup Network" mechanism. It leverages recursive zero-knowledge proofs to synchronize states between blockchains, eliminating reliance on traditional bridge mechanisms for cross-chain asset transfers. This framework was previously implemented on Ethereum through Metis’s Optimistic Rollup. Now, ZKM aims to adapt this approach to Bitcoin L1, modifying it according to Bitcoin’s unique characteristics to launch its own BTC L2. However, since Bitcoin does not support smart contracts, building an L2 presents significantly greater challenges. ZKM plans to aggregate states via Entangled Rollup onto the ZKM network, then relay verified state data to other ecosystems. For BTC asset security, ZKM adopts a locally controlled model—for instance, BTC is secured by multi-signature scripts, ensuring that as long as at least one honest party remains, malicious actors cannot withdraw staked BTC. On the L2 side, a decentralized sequencer handles transaction inclusion and finality in a decentralized manner, with plans to validate batches of L2 transactions directly through Bitcoin scripts.

ZKM implements an OCP (Optimistic Challenge Process), somewhat analogous to an optimistic proving system tailored for BTC L2s. Here’s how it works: when users deposit assets into L2 (i.e., ZKM), those assets are locked into a pre-signed n-of-n multisig script, where signers are typically independent third parties or auditors. The redemption script activates after a defined challenge period, during which signers proactively send assets to the target user, initiating the challenge phase. During this phase, signers pre-sign transactions containing both challenge and asset scripts. To initiate a challenge, challengers can spend an input UTXO, requiring operators to open their commitments by providing intermediate computational traces to the asset script. If the commitment fails to open successfully, validators receive all assets once the challenge period ends—or the challenger forfeits the assets to the signer. Execution traces are submitted via TapTree, with each leaf representing an intermediate value. Each intermediate value is computed using one-time signatures, with the previous value serving as input. This allows Bitcoin scripts to perform computations directly and complete on-chain asset validation. In essence, ZKM uses the OCP mechanism to secure off-chain computation, ensuring L2 transactions are included within a decentralized sequencer network.

zkVM has long been a critical area of foundational research in crypto, and ZKM’s zkVM represents one variant. One key difference from solutions like RISC Zero and SP1 is ZKM’s native support for Golang (whereas RISC Zero and SP1 support Rust). ZKM enables Golang developers to use the standard Golang compiler to compile their code into MIPS instructions, which are then proven via ZKM’s proof network. Looking ahead, ZKM also plans to add Rust support.

Beyond concerns over BTC asset security, the market is also watching how ZKM ensures the sustainability of its L2. To achieve sustainability, all participants in the network must have viable paths to ongoing revenue. ZKM introduces decentralized sequencers—nodes that earn rewards based on their contributions. ZKM plans to allocate 40% of its token supply as mining rewards for participants, including sequencer node operators, liquidity stakers, and proof network miners. Thus, sequencer nodes can earn not only gas fees from L2 transactions but also additional income from mining incentives.

Given current trends, exploration in the BTC L2 space will continue. Both native L2 approaches and EVM-compatible L2s will see ongoing development. Native L2s benefit from strong internal ecosystem momentum and a dedicated user base due to their alignment with Bitcoin’s ethos. Meanwhile, EVM-compatible L2s not only expand the BTC ecosystem but also offer promising pathways toward broader cross-ecosystem integration.