> Is it really better to post tons of inflated data with BitVM challenges, than just write contracts onchain and hold the escrows accountable that way
Using bitvm doesn't require posting tons of data anymore. Ever since the realization that bitvm can use garbled circuits, two benefits emerged: (1) you only need to post data in the sad path and (2) the data only needs to be one or two standard preimages and hashes -- nearly the same amount of data required to resolve a lightning htlc on L1. That is far better than writing every smart contract on chain. It is cheaper for end users and less spammy for nodes.
