Starknet to Bridge Bitcoin and Ethereum for a Unified Blockchain Future

Ethereum Layer-2 Starknet Eyes Bitcoin Settlement to Boost Scalability and Utility

Ethereum’s leading layer-2 scaling solution, Starknet, is taking bold steps to unify the blockchain ecosystem by settling transactions on both Bitcoin and Ethereum. This move aims to enhance Bitcoin’s scalability, cut transaction fees, and expand its utility beyond simple transfers.

In a roadmap released on March 11, the Starknet Foundation outlined its vision of transforming Starknet into Bitcoin’s execution layer. The goal? To scale Bitcoin’s transaction speed from a sluggish 13 transactions per second to thousands while slashing fees and improving user experience.

Unlocking Bitcoin’s True Potential

Currently, Bitcoin largely remains dormant in wallets and exchanges due to its inherent limitations - restricted scalability and the inability to support complex applications. “Most Bitcoin today sits static, constrained by the network’s original design,” the foundation noted. However, Starknet sees an opportunity to change that.

While many investors regard Bitcoin as “digital gold,” Starknet believes there is significant demand for utilizing the asset in decentralized applications (dApps). The integration could pave the way for functionalities like staking, lending, borrowing, leveraged trading, and yield farming directly on the Bitcoin network.

Reviving Bitcoin’s Programmability

StarkWare CEO Eli Ben Sasson highlighted OP_CAT - an old Bitcoin opcode disabled over security concerns - as a key enabler for this transition. If reactivated, OP_CAT could allow Starknet to execute transactions on Bitcoin, unlocking new layers of programmability.

The implications are vast: developers would be able to build smart contracts on Bitcoin, bridging the gap between Ethereum and the world’s first cryptocurrency.

A Growing Bitcoin Reserve

As part of its commitment, StarkWare announced that it has started accumulating Bitcoin as part of its treasury holdings. This move aligns with a growing trend of firms strengthening their reserves with BTC, signaling long-term confidence in its value.

Partnership with Xverse for Bitcoin’s "DeFi Take-Off"

To drive mass adoption, Starknet is partnering with Bitcoin Web3 wallet Xverse. The integration, expected in Q2 2025, could mark Bitcoin’s “DeFi take-off moment,” according to Xverse founder and CEO Ken Liao.

Liao emphasized that Bitcoin wallets must evolve beyond simple storage solutions and facilitate seamless access to DeFi applications. “The long-term future of Bitcoin includes utility, and that’s why layer-2 solutions must reach the public via the wallets they actually use,” he explained.

Vitalik Buterin Weighs In

Ethereum co-founder Vitalik Buterin voiced strong support for the initiative during a March 11 discussion on X (formerly Twitter). He stated that a properly designed Bitcoin layer-2 could “make crypto payments great again” and improve cross-chain interactions.

“There is a lot of value in enabling the trustless flow of assets between Bitcoin and Ethereum, making decentralized exchanges easier,” Buterin said. He also noted that Bitcoin’s original vision as a peer-to-peer electronic cash system has been hindered by layer-1 scalability constraints and the limitations of the Lightning Network.

A New Era for Bitcoin and Ethereum

If successful, Starknet’s vision could reshape the blockchain landscape, transforming Bitcoin from a passive store of value into an active hub for decentralized finance. By bridging the gap between Bitcoin and Ethereum, the project could unlock unprecedented opportunities for users, developers, and investors alike.