March 13, 2025
By Anjali Kochhar
Ethereum Layer 2 scaling solution Starknet is preparing to settle on both Bitcoin and Ethereum, aiming to connect the two largest blockchains under a unified execution layer. The Starknet Foundation shared its Bitcoin roadmap on March 11, outlining plans to scale Bitcoin from its current 13 transactions per second to thousands, while also reducing fees and improving user experience.
The foundation emphasised that most Bitcoin today remains idle in wallets and exchanges due to the network’s limited scalability and lack of native support for advanced applications. While many investors consider Bitcoin a store of value, Starknet believes there is demand for expanding its utility beyond simple transactions.
StarkWare CEO Eli Ben Sasson stated that Starknet’s Bitcoin integration would be possible through OP_CAT, an old Bitcoin opcode that was disabled due to security concerns. If reactivated, it could unlock new programmability for Bitcoin, allowing Starknet to settle transactions on the Bitcoin blockchain.
If successful, this move could enable DeFi applications on Bitcoin, such as staking, lending, borrowing, leveraged trading, and yield farming. To further its commitment, StarkWare announced that it has started holding Bitcoin in its treasury, joining other firms in establishing Bitcoin reserves.
Starknet is also collaborating with Bitcoin Web3 wallet Xverse, whose CEO Ken Liao described the integration as Bitcoin’s “DeFi take-off moment.“ Xverse aims to expand Bitcoin wallets beyond simple storage solutions, making it easier for users to access Bitcoin-based DeFi services.
“In today’s environment, there is a temptation to focus only on Bitcoin as a store of value,” Liao said. “But Bitcoin’s long-term future also includes utility, and that’s why Layer 2 solutions must reach users through wallets they already use.”
The announcement has drawn support from Ethereum co-founder Vitalik Buterin, who spoke about Starknet’s plans in a March 11 Twitter Space. He stated that a secure Bitcoin Layer 2 could revive crypto payments and create seamless asset transfers between Bitcoin and Ethereum.
“If you go back to the Bitcoin white paper, it was meant to be a peer-to-peer electronic cash system,” Buterin said. “Layer 1 is not scalable enough for that, and we’ve also seen limitations with the Lightning Network.”
With its ambitious roadmap, Starknet is positioning itself at the forefront of Bitcoin’s scalability revolution, potentially unlocking new opportunities for DeFi and cross-chain transactions.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
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