Developers of the Ethereum-based L2 network Starknet plan to make the protocol an execution layer for Bitcoin, uniting the ecosystems of the two largest blockchains.
1/ Bold new narrative: Scaling Bitcoin + Ethereum together
Starknet will become the first L2 to settle on both Bitcoin & Ethereum, bringing the two largest blockchain ecosystems on a single layer, unlocking new DeFi opportunities and greater liquidity.
Read our vision & plan ? pic.twitter.com/JzWo7OzoIs
— Starknet ?? (@Starknet) March 11, 2025
The team noted that currently “only about 1% of BTC is used for anything other than storage or trading.” Among the main reasons for this are infrastructural limitations and the high cost of transactions at the base layer.
According to the developers, Starknet as an L2 layer for Bitcoin will provide:
- throughput of “thousands” of TPS compared to the current 7 TPS;
- block intervals of up to two seconds instead of 10 minutes;
- transaction fees of ~$0.002 compared to the current ~$2.
The network will also offer DeFi solutions based on the first cryptocurrency, including staking, lending, borrowing, and non-custodial trading.
“Everything is secured by ZK-STARK technology — the most advanced and quantum-resistant proof system,” the statement said.
The integration of ecosystems is expected to:
- increase liquidity in both;
- strengthen the DeFi sector by making Bitcoin available as collateral;
- open up additional income opportunities for holders of the first cryptocurrency and miners.
“As a unifying layer, Starknet will offer exclusive features, becoming the network to which the community can turn for the benefits of innovations brought by both ecosystems,” the developers described the role of their project.
Plans to make Starknet a unified scaling layer for Bitcoin alongside Ethereum were announced in June 2024. Developers linked this to the implementation of the OP_CAT update in the first cryptocurrency’s blockchain.
As reported in ForkLog, the potential Bitcoin upgrade was discussed in an exclusive article.