TL;DR
- Starknet has integrated Bitcoin and Ethereum into the same execution layer, using STARK proof technology to improve Bitcoin’s scalability and functionality.
- The integration with the Xverse wallet will allow Bitcoin to be managed on this Layer 2 solution. BTCFi Season will be launched to encourage the use of Bitcoin in DeFi applications.
- The OP_CAT proposal will be promoted to introduce native smart contracts on Bitcoin, while solutions such as federated bridges and BitVM are being explored.
Starknet has successfully integrated Bitcoin and Ethereum into the same execution layer. Its goal is to overcome Bitcoin’s limitations in scalability and functionality without compromising security or decentralization. To achieve this, it will use its STARK proof technology, which allows processing multiple off-chain transactions and verifying their validity on the mainnet with minimal costs and reduced confirmation times.
One of the most important announcements is the integration of Starknet with the Xverse wallet, which will allow users to manage Bitcoin on this Layer 2 solution for the first time. Additionally, the Foundation will launch BTCFi Season, a program that will incentivize the use of Bitcoin in DeFi applications within the network. Meanwhile, StarkWare has created a strategic Bitcoin reserve as part of its financial structure, strengthening its interest in Bitcoin’s expansion within its ecosystem.
How Does Starknet’s Technology Work?
For Starknet to operate directly on Bitcoin without intermediaries, the OP_CAT proposal is being promoted, an update that would introduce native smart contracts on the network. In the meantime, solutions such as federated bridges based on multisig and BitVM, a model that allows transaction verification with just one honest operator instead of relying on multiple validators, are being explored.
Previous research by StarkWare has demonstrated methods for expanding Bitcoin’s capabilities without altering its fundamental design. Examples of this include Collider-script, which introduces programmable constraints on Bitcoin transactions, and the successful verification of a STARK proof on the Signet test network. These advances support the possibility of a trustless bridge between Bitcoin and STK once OP_CAT is approved.
New Capabilities for Bitcoin
In the long term, STRK aims to bring decentralized application functionality to Bitcoin with the same efficiency it has demonstrated on Ethereum. With over one trillion dollars in transactions and millions of transactions processed, its scalability track record shows that its proposal could be a viable solution. In the coming months, new partnerships and products designed to effectively integrate Bitcoin into Starknet will be presented
