One of the most important projects aimed at increasing the speed of the Ethereum network is to increase its work with the world’s original blockchain: Bitcoin.
Ethereum Layer-2 Starknet, in partnership with BTC Wallet Xverse, aims to deliver a “full defi experience to Bitcoin users.”
Xverse said it will “achieve Bitcoin’s defi-starter”, through integration with Starknet in the 2nd quarter of 2025, in an e-mail message on Tuesday.
The partnership with Xverse comes in the middle of a period of increased research into Bitcoin scaling using Starknet.
The StarkNet Foundation has published a new Bitcoin timetable that described how Starknet would remain fully active in Ethereum, while “became Bitcoin’s execution layer” with the goal of scaling the network “from 13 TPS to thousands.”
Developers have increasingly investigated how to press security and deep reserves held in BTC to strengthen the wider defi and blockchain world. The challenge has been how to address Bitcoin’s relative lack of programmability compared to Ethereum and others.
LAG 2S like Starknet aims to tackle this by acting as an execution layer and performing the heavy lifting of treatment transactions, which ultimately is given finality through settlement on Bitcoin.
For many observers, the missing piece is up_cat: A suggested implementation for the Bitcoin network that could hitherto unlock invisible programmability, which would be central to the provision of DEFI.
Of crucial importance, OP_CAT could allow zero-knowledge evidence, a cryptographic method of proving the validity of statements without offering information that may compromise privacy.
OPCAT is not missing supporters, but its future as a Bitcoin Improvement (BIP) remains uncertain. However, Starknet and Xverse’s plan is to make Bitcoin defi a reality, even without it.
Xverse’s goal is to give a Bitcoin defi experience in its wallet using the assumptions of trust as the next big thing for zero-knowledge proof until such a time that OP_CAT is adopted.
“Obviously, Endgame is trustless defi on Bitcoin,” said Xverse founder Ken Liao in Tuesday’s announcement. “This will still have ‘training wheels’ of some assumptions, but it is still hugely exciting to deliver the most accurate preview so far, what intuitive defi on Bitcoin will look and feel.”