Permissionless Slashable Protocol

Permissionless slashing capability is the most critical feature of the BitVM2 bridge, effectively preventing operator maliciousness.

In the BitVM2 protocol, we prioritize establishing a permissionless slashing mechanism for the operator:

• If the operator submits an invalid claim, slash them permissionlessly.

• If the operator fails to respond to a challenge, slash them permissionlessly.

• If the operator does not post witness data on the destination chain, slash them permissionlessly.

• If the operator posts incorrect witness data on the destination chain, slash them permissionlessly. ...

We have built a comprehensive mechanism to detect and penalize operator misconduct. This design ensures:

"As long as there is one honest challenger, a malicious operator will be slashed—guaranteeing 100% bridge security."

At the same time, we protect honest operators. If the operator acts honestly, they will always receive their BTC. To achieve this, we also implement a permissionless slashing mechanism for challengers:

• If a challenger maliciously leaks the secret value s_i, their collateral is slashed permissionlessly on the destination chain (typically in FIABTC).

• The bridge committee will then transfer the BTC to the honest operator.

This ensures that challengers gain nothing from:

• Submitting a fraudulent disprove_2 transaction, or

• Maliciously leaking the secret value s_i.