Bitcoin Cross-Chain Bridge: A Taxonomy and Its Promise in Artificial Intelligence of Things

Abstract

Bitcoin's limited scripting capabilities and lack of native interoperability mechanisms have constrained its integration into the broader blockchain ecosystem, especially decentralized finance (DeFi) and multi-chain applications. This paper presents a comprehensive taxonomy of Bitcoin cross-chain bridge protocols, systematically analyzing their trust assumptions, performance characteristics, and applicability to the Artificial Intelligence of Things (AIoT) scenarios. We categorize bridge designs into three main types: naive token swapping, pegged-asset bridges, and arbitrary-message bridges. Each category is evaluated across key metrics such as trust model, latency, capital efficiency, and DeFi composability. Emerging innovations like BitVM and recursive sidechains are highlighted for their potential to enable secure, scalable, and programmable Bitcoin interoperability. Furthermore, we explore practical use cases of cross-chain bridges in AIoT applications, including decentralized energy trading, healthcare data integration, and supply chain automation. This taxonomy provides a foundational framework for researchers and practitioners seeking to design secure and efficient cross-chain infrastructures in AIoT systems.