Engineering AMA Recap: hVM, PoP, and What’s Next for Hemi
This AMA got really nerdy.
The Hemi Engineering team gathered for our second AMA, fielding community questions on everything from proof-of-proof mechanics to the inner workings of hVM and future L3 tooling. These sessions are becoming a regular fixture—expect them monthly—and will be supplemented with breakout AMAs tied to major releases like the upcoming BitVM whitepaper.
Here’s a summary of the main topics covered.
hVM and Bitcoin Reorgs
When handling UTXO queries and Bitcoin proofs, hVM operates two blocks behind Bitcoin’s current tip. This isn’t just a performance decision—it’s a safeguard. It ensures DApps aren’t acting on Bitcoin transactions that might get reorged, and it protects the system once sequencer decentralization is live. Applications must set their own confirmation thresholds depending on risk; for high-risk use cases, additional delay is necessary.
Gas costs for UTXO and transaction queries are kept low by allowing developers to request only the specific data they need. Pagination, filtering outputs, or skipping scripts all help reduce unnecessary return data. A future “code golf” competition may push this even further with community-led gas optimizations.
Future Precompiles and Meta Protocol Indexing
Indexing support for Bitcoin meta protocols—runestones, BRC20s, ordinals—is on the roadmap. This will let developers build DApps around these protocols much like they do today around Bitcoin UTXOs. Think fungible BRC20s used in DeFi protocols or ordinals stored with overcollateralized insurance-style custody.
Once BitVM is live, higher-value meta assets may migrate to BitVM vaults. But smaller holders will still rely on traditional custodianship, with hVM serving as the dispute resolver watching Bitcoin for proof of compliance or failure.
Proof of Proof: Scaling and Sybil Resistance
PoP doesn’t require Sybil protection. Anyone can spin up multiple miners—just like in Bitcoin—but with a floating reward system, the protocol self-regulates. If more miners show up, rewards decrease. Less competition? Rewards rise. Economics are the defense mechanism.
Importantly, scaling transaction volume on Hemi or its downstream L3s does not increase the size of PoP commitments on Bitcoin. One transaction or a million, the size of the proof remains constant. This is a key advantage over L2s that rely on Bitcoin for DA.
Daemon V2 and Node Modularity
Daemon V2.0.0 includes performance and reliability upgrades, but the standout improvement is modularity. Operators can now run only the components they need, reducing overhead. For PoP miners, this means faster keystone processing, dynamic fee estimation, and easier integration with alternative Bitcoin data sources. The shift away from BFG to OpGeth as the keystone authority also simplifies setup.
Tunnels, BitVM, and Intent-Based Protocols
The dual custodianship model—overcollateralized vaults plus BitVM vaults—provides flexibility. Large deposits will migrate to BitVM for security. Smaller or more esoteric assets (like BRC20s) will remain in traditional vaults for ease of use and liquidity.
hVM serves as the judge. If a custodian fails to perform a withdrawal, hVM will detect it, refund the user, and reroute the request. Fraud proofs are based on real-time Bitcoin observation.
Meanwhile, intent-based protocols like Rubik will enable smoother routing of trades and transfers across chains, letting users access Hemi’s liquidity from elsewhere without needing to bridge first.
Chain Builder and L3s
Chain Builder isn’t live yet, but it will eventually offer templates for launching custom L3s. Developers will be able to configure their environment—consensus type, DA layer, VM choice—and plug into Hemi’s Bitcoin security. The end goal is an ecosystem where developers choose between throughput, decentralization, and cost depending on their use case.
DA will be a key trade-off. Ethereum offers the most secure DA but is expensive. Alternatives like Celestia or Espresso offer cheaper DA with reasonable decentralization. L3s targeting gaming or high-frequency apps may accept centralized sequencers to maximize throughput, while financial apps might mirror Hemi’s own conservative setup.
Privacy and Zero-Knowledge
ZK support is a priority for future L3s. Once Hemi has native ZK provability, L3s will be able to integrate privacy-preserving features directly. This is essential for use cases involving sensitive financial data, compliance tooling, or even basic user anonymity.
Debt Vaults and Risk Models
Unlike Aave-style lending, Hemi’s debt vaults aren’t enforced by collateral. They’re programmable bookkeeping layers for off-chain agreements—backed by legal contracts, not smart contract rules. There’s no liquidation or slashing mechanism, just on-chain tracking of who owes what. That keeps it lean, flexible, and outside the domain of publisher/challenger enforcement systems.
Looking Ahead
Expect more frequent AMAs and a deeper technical dive once the BitVM whitepaper drops. That AMA will be especially focused, and attendees are encouraged to read the paper beforehand. Until then, the team continues refining hVM, preparing for sequencer decentralization, and laying the groundwork for the L3 ecosystem.
Thanks to everyone who showed up. If you thought this was nerdy—just wait.
Hemi Dev Team