Starknet announced plans to support transactions on Bitcoin and Ethereum, aiming to extend Bitcoin's functionality and enhance its integration with DeFi.
Bridging Bitcoin and Ethereum
Bitcoin is often seen as 'digital gold' but is primarily used for storing value. Starknet aims to change this by integrating Layer 2 solutions, smart contracts, and fee reductions.
Bitcoin's Benefits and Challenges
Despite its popularity, Bitcoin faces several limitations such as high transaction costs and slow processes, making it challenging for use in DeFi. These include limited functionality, the necessity of custodial services, and high fees.
Starknet's Solutions
Starknet plans to activate multilevel scaling, enabling faster and cheaper transactions. Using quantum-resistant cryptographic proofs, they will ensure transactions are secure and trustless.
With the announcement to support Bitcoin and Ethereum, Starknet opens new possibilities in DeFi, providing integrated solutions and support for developers and users.
