Researchers Propose Bitcoin-IPC Protocol to Boost Transaction Throughput via PoS Subnets

Global: Researchers Propose Bitcoin-IPC Protocol to Boost Transaction Throughput via PoS Subnets A paper submitted to arXiv on December 29, 2025 outlines a new software stack called Bitcoin-IPC that aims to increase Bitcoin’s transaction capacity by enabling permissionless, programmable Proof‑of‑Stake (PoS) Layer‑2 chains, referred to as subnets, whose stake is denominated in Bitcoin (BTC). The authors—Marko Vukolić, Orestis Alpos, Jakov Mitrovski, Themis Papameletiou, Nikola Ristić, and Dionysis Zindros—claim the design can raise throughput from roughly 7 transactions per second (tps) on Bitcoin’s base layer to over 160 tps without altering the underlying Bitcoin protocol.

Design Overview

Bitcoin-IPC embeds its communication protocol within Bitcoin’s SegWit framework, drawing inspiration from the SWIFT messaging system. Subnets operate as independent PoS chains that periodically anchor critical data, settlement information, and security proofs to the Bitcoin main chain, thereby leveraging Bitcoin’s existing consensus and censorship‑resistance properties while allowing flexible, programmable transaction logic on the Layer‑2 level.

Performance Claims

According to the abstract, the protocol reduces the virtual‑byte cost per transaction by up to 23 times compared with native Bitcoin transactions. This cost reduction, combined with the off‑chain processing of most transaction data, is presented as the primary driver behind the projected increase to more than 160 tps, a figure that would represent a substantial scaling of Bitcoin’s current capacity.

Security and Settlement Model

The authors emphasize that Bitcoin‑IPC does not modify Bitcoin’s consensus rules; instead, it relies on Bitcoin’s L1 for final settlement and dispute resolution. By anchoring PoS subnet state to Bitcoin blocks, the design seeks to inherit Bitcoin’s proven security guarantees while introducing PoS‑based economic incentives for validators on the subnets.

Potential Market Implications

If realized, the increased throughput and lower transaction costs could make Bitcoin more attractive for everyday commerce, aligning with the authors’ stated goal of positioning Bitcoin as a universal medium of exchange. The protocol may also encourage the development of a broader ecosystem of interoperable Layer‑2 applications built on top of Bitcoin’s settlement layer.

Limitations and Future Work

The paper’s abstract does not provide empirical validation, simulation results, or a detailed security analysis beyond the conceptual design. The authors note that the implementation is still in a prototype stage and that further testing, including stress testing under real‑world network conditions, is required before deployment.

Publication Information

The manuscript, titled “Bitcoin-IPC: Scaling Bitcoin with a Network of Proof‑of‑Stake Subnets,” is listed under the arXiv categories Distributed, Parallel, and Cluster Computing (cs.DC) and Cryptography and Security (cs.CR). It is accessible via the DOI https://doi.org/10.48550/arXiv.2512.23439 and is available as an open‑access preprint.This report is based on information from arXiv, licensed under Academic Preprint / Open Access. Based on the abstract of the research paper. Full text available via ArXiv.