David Tse on BitVM’s Cost vs. Storage Trade-offs
A new post by David Tse, co-founder of Babylon, highlights the evolving cost–storage trade-offs in BitVM designs: BitVM2 required full on-chain execution with high fees, while BitVM3 cuts fees by roughly 100× at the cost of terabyte-scale data. He notes that the next iteration aims to overcome both limitations.
BitVM2: Entirely on-chain, $15K fees
— David Tse (@dntse) December 9, 2025
BitVM3: 100x lower fees, terabyte storage requirements
The trade-off was worth it because Bitcoin fees are scarce while cloud storage is abundant.
But terabyte-scale data makes even testing difficult. Next iteration solves both constraints.