Blockstream Launches New Smart Contract Language for Bitcoin
Blockstream, known for developing Bitcoin’s Layer 2 protocol Liquid and led by Adam Back, has introduced Simplicity—a novel smart contract language tailored for Bitcoin.
According to an announcement on Thursday, Simplicity Smart Contracts will be integrated within Liquid. This initiative is part of a greater effort to evolve Bitcoin (BTC) from merely a secure store of value to a programmable base for decentralized finance.
The company also unveiled SimplicityHL, which is a more accessible version that simplifies development by offering higher levels of abstraction.
A Blockstream representative mentioned that this new version is “here and available today,” along with a web-oriented development environment that users can try out.
A New Perspective on Blockchain Architecture
Simplicity stands in contrast to Ethereum’s Solidity language, mainly due to the differing architectures underpinning the two blockchains.
This distinction arises from the various methodologies and structural differences between the Ethereum and Bitcoin networks. Solidity, for instance, was built specifically for Ethereum’s virtual machines where the network maintains a snapshot of all account balances in a specific block.
On the other hand, Bitcoin operates on a structure called Unspent Transaction Output (UTXO), whereas Ethereum adopts a shared global state. This architectural difference influences how smart contracts function, as Blockstream representatives noted: “It’s a substantial change since it’s not based on a global state.” They went on to say that “your contract needs to travel along with the deal.”
Blockstream’s researchers encourage Solidity developers to stop relying on globally accessible variables and instead ensure that all essential information is passed step-by-step. This means two smart contracts won’t share states or access the same variable; everything must be explicitly included within a transaction. A company representative pointed out that this method would still bring benefits.
“If something goes wrong, only specific parts of the transaction graph contract are impacted. It’s a different concept from a global state, but it’s inherently safer and accommodates more contracts.”
Moreover, developers won’t be able to use recursive or endless loops.
The Emergence of Domain-Specific Smart Contract Languages
Simplicity is joining a growing list of specialized smart contract programming languages.
Noir, which was released in 2022, is designed for writing and verifying Zero Knowledge Proof (ZK Proof) applications. This language is being developed by the team behind the upcoming privacy-focused Layer 2 solution on Ethereum, AZTEC.
Noir has become essential for creating applications that ensure privacy through deep integration of ZK proofs into their architecture.
Another noteworthy example is Leo, a smart contract language focused on ZK proof systems while maintaining a similar syntax for enhanced privacy.
Then there’s Ethereum’s Vyper, which is specifically designed to be compatible with the Ethereum Virtual Machine (EVM). It aims to minimize the potential for attacks and is currently utilized by several major decentralized finance (DeFi) protocols on Ethereum.
