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Reading: GOAT Network Bets on Fast ZK Proofs to Capture Bitcoin Layer 2 Yield – Decrypt
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Ethereum

GOAT Network Bets on Fast ZK Proofs to Capture Bitcoin Layer 2 Yield – Decrypt

Last updated: July 31, 2025 6:50 pm
Published: 7 months ago
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The system uses decentralized provers to eliminate delays and proof backlogs.

GOAT Network launched a public beta Thursday for what it claims is the first zero-knowledge rollup built directly on Bitcoin, capable of generating cryptographic proofs in under three seconds.

The rollout — dubbed BitVM2 Beta — is aimed at tackling long-standing performance issues on Bitcoin, including slow transaction finality and the lack of scalable, Bitcoin-denominated yield options.

“Layer 2 transactions are fast, but they’re pointless without equally fast proofs to finalize on the Bitcoin mainnet,” co-founder and CEO Kevin Liu told Decrypt. “If proofs lag behind, it creates inefficiencies and security risks.”

A Layer 2 solution is a secondary protocol built on top of a blockchain, like Bitcoin or Ethereum, that processes transactions off-chain to reduce congestion, lower fees, and increase speed, while still relying on the underlying chain for security and final settlement.

Zero-knowledge proof, or ZK proofs, allow someone to verify a block of information — such as transactions — without revealing the underlying data. While common in Ethereum-based systems, implementing ZK proofs natively on Bitcoin has posed steep technical challenges.

GOAT Network began as a zero-knowledge research project in 2023. In 2024, it shifted focus to Bitcoin, adapting its zk-prover infrastructure to work within the network’s more limited scripting environment.

Its new testnet uses a distributed system of GPU-powered nodes that process blocks, aggregation, and Groth16 proofs, in parallel. According to GOAT, this setup eliminates bottlenecks and allows for near-instant withdrawals.

GOAT Network is one of several teams building zero-knowledge solutions on Bitcoin. Other projects include BitcoinOS, StarkWare, L2 Iterative, Citrea, and Build on Bitcoin (BOB).

Unlike projects that claim Bitcoin compatibility while operating on sidechains, Liu said GOAT’s architecture directly settles on Bitcoin.

“All transactions occur on the Layer 2 network but are ultimately settled on Bitcoin,” he said. “If any disputes arise, Bitcoin miners are responsible for validating them. The bridge operates without intermediaries, ensuring no external party controls user assets.”

These elements — Bitcoin settlement, miner validation, and a trustless bridge, Liu said, define what makes a Bitcoin Layer 2 legitimate.

“Nearly every Bitcoin holder we’ve talked to — large and small — wants yield, but they’re not willing to sell their Bitcoin to get it,” Liu said.

Yields come from gas fees paid in Bitcoin on GOAT’s Layer 2. Users stake Bitcoin into decentralized sequencer nodes — the entities that process rollup transactions — and earn a share of the fees they generate.

Liu said the system’s security is built on three layers: decentralized sequencers to prevent single points of failure, a trustless bridge with an Optimistic Challenge Process to detect and punish invalid withdrawals, and zk-proofs that only work if the transaction is valid.

“If a malicious node alters a transaction, the proof won’t go through,” he said.

Liu acknowledged the skepticism the Bitcoin community may have toward new Bitcoin Layer 2s, promising to revolutionize the number one blockchain network. He believes the timing is different.

“This is Bitcoin’s OP moment,” Liu said, referencing the Ethereum Layer 2 Optimism. “Now the tech works — and it’s time to prove it.”

BitVM2 ZK Rollups will be available to the public before the end of the year.

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