You can bet with a friend on whether Bitcoin will hit 200ドルK by 2026. Normally, Bitcoin can't do complex logic like this. But with BitVM, we made it possible while keeping Bitcoin’s secure blockchain as the final judge.

Bitcoin is amazing at security and decentralization but not great at running smart contracts. With BitVM, we unlock Turing-complete logic — all without changing Bitcoin itself.

• Bet on real-world outcomes (e.g., "BTC > 100ドルK?")
• No trust needed — Bitcoin enforces the rules
• Only disputes go on-chain — saves fees!

Here's the magic:

graph TD
 A[Alice Bets 'YES'] -->|Locks Funds| C(📜 Smart Contract)
 B[Bob Bets 'NO'] -->|Locks Funds| C
 O[🔮 CoinGecko Oracle] -->|Reports Price| C
 C -->|If Both Agree| D[💰 Automatic Settlement]
 C -->|If Dispute| E[⚖️ Bitcoin Decides]

• 🔑 Key Management: Alice, Bob, and an Oracle each have keys.
• 📜 Contracts: Built using Taproot + MAST to hide complexity until needed.
• 💰 Transactions: PSBT-based funding and settlement.
• 🔍 Oracle: Gets Bitcoin price from CoinGecko.
• ⚖️ Disputes: If someone cheats, BitVM runs fraud proofs on Bitcoin.

/bitvm-prediction-market
 ├── .env # Configuration values
 ├── keys.js # Generate participant keys
 ├── oracle.js # Fetch BTC price
 ├── contract.js # Build BitVM scripts & Taproot address
 ├── wallet.js # Create funding/settlement transactions
 ├── dispute.js # Handle disputes via Bitcoin Script
 ├── test.js # Run full workflow simulation
 └── cli.js # User-friendly CLI interface

• Node.js installed
• .env file configured (see below)

# Clone the repo
git clone https://github.com/yllvar/BitVM-Prediction.git
cd BitVM-Prediction
# Install dependencies
npm install
# Run tests
node test.js
# Or use the CLI
node cli.js

NETWORK=testnet
ORACLE_PRIVATE_KEY=cQqV9FJ2GzvXHwv5yXr2YRYC5xHk2Z4XH6oRjv8J4HJ9Xu3GfZ8
COINGECKO_API_URL=https://api.coingecko.com/api/v3/simple/price

• 🔐 Bitcoin Security: Even if someone tries to cheat, Bitcoin ensures fairness.
• 💸 Cheap & Efficient: Only disputed bets touch the blockchain.
• 🤖 No Trust Needed: Rules are enforced by code and Bitcoin.
• 🕵️ Hidden Complexity: Dispute logic stays off-chain until needed.

When we tested it:

• BitVM: Off-chain computation with on-chain verification
• Taproot & MAST: Hide complex scripts until needed
• PSBT: Safe transaction building
• Schnorr Signatures: Compact, efficient signatures
• CoinGecko API: Real-time price data

• 👥 Add multi-party support (N-of-N multisig)
• 🌐 Integrate decentralized oracles (like Chainlink)
• 💻 Build a web UI for non-technical users
• 🕵️ Implement watchtowers to prevent cheating

Check out the ABSTRACT.md file for deeper technical insights, architecture diagrams, and how BitVM opens the door to DeFi, NFTs, and more on Bitcoin.

💡 The Big Idea: We proved that Bitcoin can run complex apps without compromising its core values — security, simplicity, and decentralization.