You might be curious how Bitcoin can function as a programmable asset without having its own smart contracts. This capability is unlocked by Babylon vaults, which interpret the outcomes of smart contracts and convert them into conditions that Bitcoin can strictly enforce. In this system, ownership is transferred only after specific, pre-set rules are satisfied. Furthermore, any illegitimate claims face potential challenges, guaranteeing that the process remains verifiable and trustless. Ultimately, this allows Bitcoin to serve as pristine programmable collateral, all while maintaining its uncompromising security standards.