Key takeout
- Starknet aims to connect Bitcoin to the Ethereum network to expand Defi opportunities.
- The protocol aims to dramatically reduce transaction fees and increase processing speed.
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Starknet today announced plans to become the first Layer 2 network to resolve transactions in both Bitcoin and Ethereum. The company aims to unify and expand its capabilities of the two dominant blockchain ecosystems.
1/Bold New Story: Scaling Bitcoin + Ethereum together
StarkNet will be the first L2 to settle in both Bitcoin and Ethereum, bringing two biggest blockchain ecosystems to the single tier, unlocking new Defi opportunities and greater liquidity.
Read the vision and plans pic.twitter.com/jzwo7ozois
– starknet🐺🐱 (@starknet) March 11, 2025
The plan aims to address Bitcoin restrictions. The flagship Crypto Asset utilities, primarily beyond holdings and trading, remain limited, largely due to network limitations, high transaction costs, and reliance on management solutions for Defi activities.
Starknet is trying to convert Bitcoin into a productive asset that can generate yields and engage in Defi activities without compromising the core values of security and decentralization.
To ensure the smoothest Bitcoin integration, StarkNet focuses on the construction of federation bridges, BITVM-driven bridges and future unreliable bridges. The company said it is working with both current and future technologies to build the best Bitcoin bridging solutions.
Additionally, Starknet shares that it has already partnered with leading Bitcoin projects to build innovative products such as Vicverse, Bitcoin Staking and other Defi Solutions.
Important improvements
As mentioned earlier, the platform aims to reduce the transaction fee from $2 to $0.002, reducing block check times from 10 minutes to 2 seconds.
Regarding transaction throughput, StarkNet promises to dramatically increase transaction throughput from seven transactions per second (TPS) to thousands.
The company also aims to improve the user experience with a seamless Web2-like user interface with features such as wallets with 2FA/3FA and session keys.
Starknet hopes to achieve full decentralization by early 2026, eliminating central authority control over transactions.
Starkware's Bitcoin and Ethereum Reserve
Starknet also revealed that its core contributor, Starkware, has established strategic Bitcoin and Ethereum reserves and will continue to accumulate both digital assets over time.
To accelerate Bitcoin integration, the StarkNet Foundation is implementing a targeted incentive program. The objective of this initiative is to establish StarkNet as a major destination for BTC holders seeking yield generation, providing an attractive alternative to traditional, centralized platforms.
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