Yago Reveals Why Litecoin’s LitVM is a Step Ahead of Bitcoin

Litecoin (LTC/USD), long known for its fast and affordable transactions, is now stepping into a bold new chapter. At the recent Litecoin Summit in Las Vegas, the network officially unveiled LitVM, its first zero-knowledge (ZK) Layer-2 chain. 

Developed by Lunar Digital Assets, LitVM is built on BitcoinOS and Polygon’s Chain Development Kit (CDK), bringing smart contracts and cross-chain features to the 14-year-old Litecoin network for the first time.

The launch marks a massive shift for Litecoin, which has historically stuck to simple peer-to-peer payments. With backing from the Litecoin Foundation, LitVM opens the door to DeFi, Web3, and more, positioning Litecoin as a serious contender in the UTXO (unspent transaction output) ecosystem.

Despite being a self-proclaimed “hardcore Bitcoin maximalist,” Edan Yago took the stage at the Litecoin Summit with surprising admiration for the network’s track record.

Edan Yago, Head of Litecoin ZK Development, started the LitVM session, stating, “Today, LitVM is here to talk about building the first true ZK rollup, not just on Litecoin, but anywhere in the UTXO world.”

LitVM is fully EVM-compatible, meaning developers can now build decentralized apps (dApps) using native Litecoin assets. This leap allows Litecoin to support programmable tokens, tokenized real-world assets (RWAs), stablecoin infrastructure, and even cultural tokens like Runes and Lordinals.

“Since creating Litecoin in 2011, our focus has been security and reliability,” said Charlie Lee, Litecoin’s founder. “This Layer-2 pushes Litecoin into the smart contract era while preserving those principles.”

What sets LitVM apart is its foundation—BitcoinOS, which successfully ran a ZK proof on Bitcoin’s mainnet (block 853626) without requiring a hard fork, and Polygon’s CDK, which powers its zero-knowledge rollup structure. 

These ZK rollups use cryptographic proofs to finalize transactions instantly, offering a stronger security model compared to optimistic rollups, which depend on delay-based challenge periods. 

Thanks to this design, LitVM supports trustless smart contracts with optional privacy features, tapping into Litecoin’s MimbleWimble Extension Block (Mweb) for extra confidentiality.

One of the biggest innovations with LitVM is its “omni chain” capability. It allows seamless, decentralized token transfers between major UTXO-based blockchains—Bitcoin, Cardano, Monero, Dogecoin, and of course, Litecoin—without needing centralized bridges or exchanges.

“The big story here is the ability to bring all of the UTXO chains together, sort of create the UTXO bros,” said Edan Yago, a Bitcoin maximalist and LitVM contributor. “From Litecoin, Bitcoin, Cardano, Monero, Dogecoin, each with their own communities, a mega chain of the largest, most dedicated communities, with the largest asset base in all of crypto.”

To boost DeFi adoption, LitVM also integrates with Polygon’s AggLayer, providing a bridge to Ethereum’s massive liquidity pool. “This will actually be plugged into Polygon also, so that we can have access to all Ethereum liquidity, but this will be a pure ZK rollup to Litecoin, the first ever, first of its kind,” explained Roc Zacharias, CEO of Lunar Digital Assets and one of LitVM’s core architects.

By using Polygon’s pessimistic proofs, LitVM adds another layer of defense, tapping into the over $12 billion in TVL (total value locked) across the Ethereum and Bitcoin ecosystems combined.

The Litecoin Foundation has officially endorsed the project, noting that it reflects what the community has been asking for—programmable infrastructure on Litecoin. Longtime community member David Schwartz will lead governance efforts, making sure that more than half of LitVM’s treasury remains under multi-signature control.

“I’m keeping my eye on them,” said Schwartz, emphasizing the importance of transparency and community oversight. 

“Litecoin has been at the forefront, of beating Bitcoin to the chase for well over a decade now,” Yago said, addressing the crowd. From SegWit to the Lightning Network, atomic swaps with HTLCs, and even the integration of privacy-focused Mweb through Taproot, he noted, “it was Litecoin that integrated Mweb and provided privacy, doing something that Bitcoin still hasn’t done.”

“What I hope is that, in the same way that the changes and developments that Litecoin proved safe and important became the petri dish where initial adoption and security could be proven, this will put Litecoin at the forefront again,” he said.

By enabling secure asset transfers to its Layer-2, LitVM lets developers and users experiment freely, without compromising the reliability of Litecoin’s Layer-1 base.

“Litecoin remains one of the most used cryptocurrencies globally,” Zacharias added. “LitVM is designed to meet that demand with infrastructure that enables real-world utility and programmable liquidity.”

With LitVM, Litecoin is clearly repositioning itself—not just as digital silver, but as a serious, scalable platform that’s now ready to take on DeFi, smart contracts, and the broader Web3 movement.

The project team includes Roc Zacharias, Michael Terpin, and Edan Yago, with David Schwartz serving as moderator and governance lead for the initiative.