Starknet, an Ethereum Layer 2 solution, is preparing to integrate with Bitcoin to unify the two largest blockchain ecosystems on a single layer. The Starknet Foundation outlined this strategy in its recent Bitcoin roadmap, targeting a significant increase in Bitcoin’s transaction capacity—from 13 transactions per second to thousands—while also reducing block times and gas fees for users.
The foundation noted that most Bitcoin remains stationary in wallets and exchanges due to the network’s initial design limitations, which include scalability issues and limited support for applications beyond basic transactions. It emphasized a growing demand to use Bitcoin beyond its perception as “digital gold.”
StarkWare CEO Eli Ben Sasson indicated that leveraging OP_CAT, a Satoshi-era opcode previously disabled for security reasons, might unlock programmability on the Bitcoin blockchain via Starknet. If implemented successfully, this could enable developers to create applications such as staking, borrowing, lending, leveraged trading, and yield farming on the Bitcoin network.
As part of its broader strategy, StarkWare is also building a Bitcoin reserve from its corporate treasury. Collaborating with Xverse, a Bitcoin Web3 wallet, Starknet aims to facilitate Bitcoin’s DeFi expansion with the integration expected by the second quarter of 2025. Xverse CEO Ken Liao highlighted that this integration is essential for Bitcoin to achieve greater utility beyond just being a value store.
Ethereum co-founder Vitalik Buterin supported the initiative, noting that an effective Bitcoin Layer 2 could revive crypto transactions’ appeal and enable seamless asset flow between Bitcoin and Ethereum. He acknowledged the limited scalability of Bitcoin’s Layer 1 and mentioned the constraints of existing solutions like the Lightning Network.
The development marks a significant step towards enhancing Bitcoin’s functionality, aiming to fulfill its original purpose as a peer-to-peer electronic cash system, while also enabling broader decentralized financial activities.
