An Interview With Hemi Labs

In an exclusive interview with BitcoinWorld, We got a chance to interact with  Max Sanchez, Co-Founder and CTO at Hemi Labs, In this interview, We discuss what is Hemi Labs is all about,   

• In Simple Terms what Hemi Labs is all about & what are they doing differently? 

Hemi Labs is creating a groundbreaking blockchain network that combines Bitcoin and Ethereum, effectively unifying them into a single “supernetwork.” This approach combines Bitcoin’s security with Ethereum’s programmability to enable more sophisticated and secure blockchain applications.

What sets Hemi apart is its innovative Proof-of-Proof (PoP) consensus mechanism and the Hemi Virtual Machine (hVM). PoP allows Hemi to inherit Bitcoin’s full security in an entirely decentralized manner. The hVM is a Bitcoin node embedded within an Ethereum Virtual Machine, allowing developers to build advanced Bitcoin-aware applications (i.e., DeFi applications) using familiar Ethereum tools.

Hemi’s tunnel system provides for secure and efficient transfers of assets from both networks. Hemi’s connection to Ethereum allows the network to leverage existing economic security systems to over-collateralize Bitcoin vaults for lower-value and non-fungible token deposits and their upcoming BitVM-based vault system will enable capital-efficient trust-minimized high-value deposits.

• Hemi Labs recently raised $15 million from top investors like Binance Labs and Breyer Capital. Can you share how this funding will accelerate Hemi’s development and impact the blockchain space?

With this investment, we’ll be able to enhance our tunneling system, expand the capabilities of our Hemi Virtual Machine, and work toward our mainnet launch in Q4 2024. This involves further developing the Proof-of-Proof (PoP) consensus mechanism to optimize Bitcoin security inheritance and working on the Chainbuilder system, which will allow other blockchains to leverage Hemi’s Bitcoin security and multi-chain interoperability features.

• Hemi is a modular blockchain network built on Bitcoin and Ethereum. What inspired this approach, and how does it differ from traditional attempts to integrate these two networks?

We saw a need to combine Bitcoin’s unmatched security with Ethereum’s flexibility and programmability. Traditional approaches to integrating these two networks often involve centralized or less secure methods. We wanted to create a solution that not only leverages Bitcoin’s security but also makes Bitcoin-aware applications possible within an Ethereum-compatible environment. Through our Proof-of-Proof consensus and the Hemi Virtual Machine, we’re enabling deep interoperability between Bitcoin and Ethereum in a trust-minimized, highly secure manner. Furthermore, Hemi’s Tunnel system provides a more secure and capital-efficient method for moving assets between chains compared to traditional bridges.

• One of Hemi’s standout features is the Hemi Virtual Machine (hVM), which allows developers to build applications for both Bitcoin and Ethereum. Can you explain how this works and why it’s a game-changer for developers?

This system allows developers to build smart contracts with fully permissionless awareness of Bitcoin’s complete state. . With hVM, developers can build robust Bitcoin-native applications using Solidity or other EVM-compatible languages, enabling new functionalities like trustless asset exchanges between BTC and ETH and native-Bitcoin-based lending protocols. This flexibility brings a new level of programmability to Bitcoin, making it easier to develop advanced, secure applications that leverage both Bitcoin and Ethereum.

• Hemi introduces “Bitcoin Programmability” through the Hemi Bitcoin Kit (hBK). How does this feature unlock new possibilities for Bitcoin-based smart contracts and decentralized applications?

By using hVM, developers can create trustless, efficient Bitcoin-native applications without introducing new trust assumptions or relying on intermediaries. This opens up a whole new world of possibilities, like trustless asset DEXes, trustless Bitcoin staking, and custom smart wallet infrastructure. By expressing robust Bitcoin awareness in an EVM environment, hVM also enables developers to build bespoke Bitcoin interoperability infrastructure, such as custom BitVM-based custodianship systems. Essentially, we’re bringing the full power of programmable smart contracts to the Bitcoin ecosystem.

• You’ve highlighted Hemi’s Proof-of-Proof (PoP) consensus as a way to inherit Bitcoin’s security. How does this work, and why is it important for ensuring blockchain security across networks?

Proof-of-Proof is a game-changer because it allows Hemi to inherit Bitcoin’s security directly in an entirely decentralized manner. A new class of “PoP Miners” compete to periodically publish Hemi consensus state data to Bitcoin, which the protocol uses for determining the canonical chain. This means that for anyone to reorganize the Hemi chain, they would need to execute a 51% attack on both Bitcoin and Hemi simultaneously—an almost impossible feat. This approach provides what we call ‘superfinality,’ where the finality of Hemi’s blocks is fully backed by Bitcoin’s Proof-of-Work, making it nearly impossible to reverse. By incorporating Bitcoin’s security into our network, we’re offering a level of protection that is crucial for building trust and security in blockchain applications.

• Hemi’s Tunnels aim to replace traditional bridges for cross-chain asset transfers. What makes Tunnels more secure, and how do they improve the user experience when moving assets between chains?

Our Tunnels are designed to be a secure, trust-minimized way of moving assets across chains. Unlike traditional bridges, which often rely on centralized intermediaries, our Tunnels use PoP to inherit Bitcoin’s security and hVM to provide direct, real-time access to Bitcoin’s state. We employ over-collateralized multi/threshold signature vaults for smaller assets and are developing a robust BitVM2-based system modified to take advantage of hVM for improved security and capital efficiency for high-value transfers. By slashing misbehaving participants and ensuring solvency through collateral, our Tunnels minimize trust assumptions, making cross-chain asset transfers more secure and efficient.

• Scaling and interoperability are key features of Hemi. How do these advancements help unify the Bitcoin and Ethereum ecosystems, and what new blockchain applications could emerge as a result?

It opens up opportunities for a new generation of decentralized applications that leverage the strengths of both blockchains. For example, developers can build trustless BTC<>ETH DEXes, cross-chain lending protocols, and even explore use cases beyond crypto, like decentralized AI systems that rely on Bitcoin’s security for data anchoring. 

• Looking ahead to the mainnet launch in Q4 2024, what are Hemi Labs’ next milestones, and how do you see the network shaping the future of Web3 infrastructure?

We’re focused on further enhancing our tunneling system, expanding the hVM toolkit, and collaborating with other emerging projects to drive innovation in the space. In the long term, we envision Hemi becoming the backbone of a more secure, scalable, and interoperable Web3 infrastructure.