This essay is about Bitlayer and EVM compatibility and how it bridges Bitcoin with smart contracts.  This concept touches on the cutting-edge of blockchain interoperability between Bitcoin and Ethereum Virtual Machine (EVM) systems. Bitlayer is an L2 Bitcoin protocol that enables EVM-compatible smart contracts (written in Solidity or Vyper) to run on Bitcoin infrastructure, using BTC as gas.

What is Bitlayer?

Bitlayer is a Bitcoin Layer 2 rollup that is EVM-compatible, meaning it runs Solidity contracts like Ethereum does.

Instead of using ETH for gas, it uses BTC.

It achieves this via a custom VM layer that bridges Bitcoin’s base layer and EVM logic, sometimes referred to as LVM (Layered Virtual Machine) in their stack.

How Bitlayer Bridges BTC with the EVM Stack

1. EVM Compatibility Layer
   The Bitlayer VM (LVM) emulates the Ethereum Virtual Machine.
   This means that when a Solidity contract calls msg.sender, or uses getSigners(), it behaves the same as it would on Ethereum — the address format and signing logic are preserved.
   Ethereum addresses are still used, even though BTC underlies the gas payment system.
2. Gas Paid in BTC, Not ETH
   Users pay gas fees in BTC, but the LVM maps the BTC fees to EVM opcodes.
   Bitlayer tracks BTC balances internally for each EVM account (ETH address) and deducts gas fees accordingly.
   This means you might have an 0x Ethereum-style address, but you’ll need to fund it with BTC on Bitlayer to interact with contracts.
3. Signers and Transactions
   The signers in Bitlayer-based dApps are still Ethereum-style ECDSA addresses (starting with 0x, using secp256k1).
   When a user signs a transaction:
   • The signature is Ethereum-compatible (r, s, v values).
   • The transaction is processed via the EVM ruleset.
   • But on execution, BTC balances are debited for gas instead of ETH.
4. Bridging BTC to Bitlayer
   Users typically bridge BTC into Bitlayer (via their wallet or bridge interface).
   Once bridged, it becomes usable for gas within the LVM system, tied to an Ethereum-style address.

In Practice: Deploying a Contract on Bitlayer

Here’s how it plays out:

• You write and compile a Solidity smart contract.
• You deploy it using a tool like Hardhat or Remix, pointing to the Bitlayer RPC endpoint.
• You use your Ethereum wallet (e.g. MetaMask) — same 0x address format.
• You fund that 0x address with BTC on Bitlayer via a bridge.
• When the contract executes:
  • The gas metering is EVM-style (gasUsed * gasPrice)
  • But the payment is deducted in BTC

Summary

Component	Ethereum	Bitlayer (LVM)
Wallet format	0x ECDSA address	Same 0x format
Smart contract code	Solidity / Vyper	Same
Gas unit	ETH	BTC
Signing mechanism	ECDSA (r, s, v)	Same
Underlying chain	Ethereum L1	Bitcoin L1 (via rollup)