Starknet’s Bold Plan To Unify Ethereum & Bitcoin, Here’s how

• Starknet will become the first L2 to settle on both Bitcoin and Ethereum.
• This aims to unlock new DeFi opportunities and greater liquidity for both blockchains.
• The L-2 platform will enhance Bitcoin’s performance, reduce fees, and improve user experience.

Ethereum L2 Starknet is poised to make history by becoming the first Layer-2 solution to settle on both Bitcoin and Ethereum. The L-2 project intends to bring the two largest blockchain ecosystems together on a single layer, unlocking new DeFi opportunities and greater liquidity for both.

To put it simply, Bitcoin’s true potential remains largely untapped as most of the BTCs sit in wallets or on exchanges due to network constraints, high transaction costs, and the lack of user-friendly DeFi options. Starknet aims to fill the gap by becoming Bitcoin’s execution layer.

By acting as a Bitcoin L2, BTC’s performance and usability will improve. It will boost transaction speed (7 TPS to thousands of TPS), cut down fees from $2 gas fees to $0.002, and transform it into a productive yield-generating asset. Picture this: Bitcoin-native DeFi apps like staking, lending, and self-custodial trading, all secured by Starknet’s advanced ZK technology.

Starknet's Bold Plan To Unify Ethereum & Bitcoin, Here's how 3

Starknet’s ambitious move also offers benefits for Ethereum. ETH users stand to gain native access to Bitcoin as collateral, strengthening DeFi on the smart contract platform. Also, new Bitcoin assets will be accessible to Ethereum users, onboard Bitcoiners into the Ethereum ecosystem, and bring more liquidity and users to both blockchains.

Starknet’s Win-Win Strategy

The project’s primary focus is creating synergy and interoperability between the two ecosystems instead of competition. It is a win-win situation, which Starknet calls a “real virtuous cycle.” Starknet also aims to become the network with the widest range of partnerships and integrations, empowering its users to do more with their Bitcoin.

To achieve this, the layer 2 protocol is developing top-notch and highly secure bridge to bring Bitcoin assets to Starknet. In parallel, the team continues supporting research on OP_CAT, funding related public goods, and is gearing up to deploy a native and fully trustless Bitcoin bridge if OP_CAT is accepted.

OP_CAT is a Satoshi-era opcode, designed to unlock Bitcoin’s programmability, but security risks led to its deactivation.