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Starknet Aims to Bridge Bitcoin and Ethereum for Faster Transactions
Key Takeaways
- Starknet plans to enhance Bitcoin’s speed and lower fees by making it a Layer-2 processing network;
- Partnering with Xverse, Starknet aims to bring smart contracts to Bitcoin by 2025, enabling DeFi features;
- Vitalik Buterin supports Bitcoin Layer-2 solutions, seeing them as a way to improve scalability and payments.
Starknet, an Ethereum
The Starknet Foundation shared its roadmap on March 11, outlining plans to make Starknet a key processing layer for Bitcoin. The goal is to increase Bitcoin’s transaction speed from 13 per second to thousands while lowering fees and improving efficiency.
The foundation pointed out that most Bitcoin is currently held in wallets or exchanges without much activity. While Bitcoin is often seen as a “digital gold” investment, the foundation believes there is growing interest in using it for more practical applications.
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If successful, this development could bring smart contracts to Bitcoin, allowing for features like lending, staking, and decentralized trading.
Ethereum co-founder Vitalik Buterin weighed in on Starknet’s vision. During a discussion on March 11, he noted that a secure Bitcoin Layer-2 could “make crypto payments great again” and improve cross-chain transactions.
Buterin also stated, "If you go back to the white paper, Bitcoin was meant to be a peer-to-peer electronic cash system, and obviously, Layer-1 is not nearly scalable enough for that".
Starknet is teaming up with Xverse, a Bitcoin Web3 wallet provider, with implementation expected by the second quarter of 2025.
Xverse CEO Ken Liao called this integration Bitcoin’s "DeFi take-off moment". He stated that wallets should be more than storage tools and should give users access to Bitcoin’s expanding capabilities.
Meanwhile, over 50% of Ethereum's validators recently supported raising the gas limit. Why? Read the full story.