Bitcoin Sidechain Project Aims to Add Programmable and Private Features

VerifiedX, a decentralized layer-1 blockchain and Bitcoin sidechain project, said it is building infrastructure to make bitcoin programmable while preserving its core properties. The system uses threshold signatures and taproot-based addresses to allow self-custodial ownership without converting bitcoin into wrapped versions.

Jay Pollak, head of strategy and business development at the VerifiedX Foundation, said the approach keeps users inside the Bitcoin ecosystem.

The project positions itself between supporters of bitcoin as a standalone asset and the broader DeFi sector built on other blockchains. It introduces vBTC, a tokenized representation that the project says remains fully collateralized and redeemable without a federated custodian model.

Total value locked in Bitcoin DeFi stands at just over $5 billion, according to DeFiLlama data cited in the report. By comparison, Ethereum DeFi exceeds $44 billion.

Optional privacy tools rely on zero-knowledge proofs while maintaining auditability and compliance controls. Pollak said institutions seek private movement of assets for strategic reasons rather than regulatory avoidance. The announcement comes as tokens linked to privacy infrastructure, including zcash, have drawn renewed attention over the past year.

Pollak noted that cross-chain bridges have been a source of security vulnerabilities in prior incidents.