I think BitLayer has a big problem, which is that they claim to build on BitVM, and this operation has left me a bit confused.

BitVM is indeed a powerful concept that was proposed in October 2023, with the goal of supporting complex smart contracts without the need for soft forks or hard forks of Bitcoin. Sounds impressive, right?

But here comes the problem: BitVM is still in the theoretical stage, and it is quite challenging to advance; it is still in the testnet phase. There is still a long way to go before it can truly launch on the mainnet and run DeFi applications.

I really think that BitLayer should not be based on BitVM at this time, especially with the issuance of tokens first; this uncertainty is just too great. It feels like building a house on a foundation that hasn’t been completed yet and then collecting rent beforehand.

In this situation, the risk of getting in is really high, especially since the underlying technology is not mature yet, and they are already starting to work on application layer stuff. Personally, I think it's better to wait and see with such projects, at least until BitVM can truly run on the mainnet.