The leading Ethereum Layer 2 scaling solution Starknet has announced plans to use Bitcoin as its settlement layer to improve scalability and interaction with Ethereum.
Enhancing Bitcoin Transaction Speed
Starknet plans to increase Bitcoin's transaction throughput from 13 transactions per second (TPS) to thousands, reducing block size costs and improving user experience.
Addressing Bitcoin's Programmability Limitations
Despite superior security and liquidity, Bitcoin lacks the flexibility for creating decentralized finance (DeFi). Starknet supports Bitcoin update OP_CAT to enable BTC spending conditions using zero-knowledge proofs. This cryptographic system allows transactions verification while protecting privacy and enabling cross-platform connection between Bitcoin and Starknet.
Establishing a Strategic Bitcoin Reserve
StarkWare has established a Strategic Bitcoin Reserve using funds from its treasury, demonstrating commitment to Bitcoin usage in DeFi. Key figures in the blockchain community support this initiative, highlighting its importance.
The integration of Bitcoin into Starknet's system enhances scalability and opens up new opportunities for decentralized finance, linking major blockchains.
