Starknet Aims to Unify Bitcoin and Ethereum, Boosting Bitcoin's Utility by 1000%

Starknet, a prominent Layer 2 (L2) solution, has announced an ambitious initiative to settle on both Bitcoin and Ethereum, aiming to unify the two largest blockchain networks. This groundbreaking move is set to revolutionize the cryptocurrency landscape by enabling developers to build on Bitcoin through smart contracts, thereby opening the door to complex Bitcoin applications such as staking, borrowing, and lending. By integrating Bitcoin and Ethereum into the same execution layer, Starknet will leverage STARK proof technology to enhance Bitcoin's functionality and scalability.

The Starknet Foundation has outlined its vision in a March 11 Bitcoin roadmap, stating that Starknet aims to become Bitcoin’s execution layer. This transition is expected to scale Bitcoin from its current 13 transactions per second to thousands, significantly reducing block times and gas fees, and creating a better user experience. The foundation highlighted that most Bitcoin today remains static in wallets and exchanges, constrained by the network’s original design limitations, such as a lack of scalability and an inability to natively support applications beyond simple transactions.

Starknet’s initiative is not just about scalability; it also aims to unlock Bitcoin’s potential beyond being a store of value. The foundation believes there is a demand for utilizing Bitcoin for purposes beyond digital gold, such as enabling applications like staking, borrowing, lending, leveraged trading, and yield farming. This vision aligns with the broader goal of creating a more interconnected and efficient blockchain ecosystem.

To achieve this, Starknet plans to use OP_CAT, a Satoshi-era opcode for unlocking programmability on Bitcoin that was previously disabled due to security concerns. If successful, this move will allow developers to build applications on the Bitcoin network through smart contracts, enabling a wide range of decentralized finance (DeFi) applications. This integration is expected to significantly enhance Bitcoin’s utility and functionality, making it more accessible and versatile for developers and users alike.

Starknet’s collaboration with Bitcoin Web3 wallet Xverse is another key aspect of this initiative. The integration, slated for the second quarter of 2025, aims to achieve Bitcoin’s “DeFi take-off moment.” Xverse’s founder and CEO Ken Liao emphasized the importance of wallets being more than just storage solutions, allowing easy access to Bitcoin’s growing utility. The endgame, according to Liao, is trustless DeFi on Bitcoin, which would enable a seamless and secure