The Big Whale: Starknet announces its expansion into Bitcoin. Why this choice and why now?
Eli Ben-Sasson: There are two aspects to this question: why expand and why now. Our vision has always been to bring our technology to all blockchains requiring scalability. In the order of priorities, Bitcoin should have come first. However, until recently, we didn't even have the technical foundations to envisage such an integration. So we started with Ethereum, which, although smaller in terms of capitalisation, offered a more suitable environment for deploying STARK technology.
Today, things are changing. We are approaching a point where it will be technically possible to verify STARK proofs on Bitcoin. This is a game-changer and is pushing us to prepare ourselves to help Bitcoin evolve, particularly in terms of scalability. The primary objective is to improve scaling, but in the long term this could also bring more confidentiality to Bitcoin transactions.
How do you technically implement STARK proofs on Bitcoin?
We are planning three main phases. Initially, our solution will work solely on Starknet, with proofs tracked via an indexing system, similar to what is done with Bitcoin inscriptions and runes. This first step allows us to lay the foundations without requiring immediate changes to the Bitcoin protocol.
Next, we are collaborating with several teams to use BitVM, a technology that allows proofs to be verified without requiring a soft fork on Bitcoin. BitVM offers a higher level of security than simple indexers thanks to a one-turn proof-of-fraud mechanism. Finally, if a soft fork like OPCAT is adopted, enabling full STARK proof verification on Bitcoin, we will be able to offer a fully self-hosted and secure solution, without additional trust assumptions.
Why did you choose BitVM and not another approach?
When I talk about BitVM, I am referring to the underlying technology and not to any particular project. Several teams are currently working on verification and proof methods based on BitVM. The advantage of this approach is that it allows advanced features to be brought to Bitcoin without requiring immediate changes to the base protocol.
BitVM represents a unique opportunity for us to integrate Starknet with Bitcoin while guaranteeing a high level of security. This is a major breakthrough that could pave the way for wider adoption of scalability and privacy on the Bitcoin network.
>> Read also - Analysis of the different types of layers 2 Bitcoin
"Xverse, a popular Bitcoin wallet with over a million users, will integrate Starknet" What will be the impact on user experience, particularly for wallets like Argent or Braavos?
Users will find the same standards of security and user experience as with Argent and Braavos. These wallets combine a fluid experience inspired by Web2 with the security guarantees of Web3. The aim is to enable them to manage Bitcoin transactions with the same ease as they manage transactions on Starknet today.
In parallel, Xverse, a popular Bitcoin wallet with over a million users, will integrate Starknet. This integration clearly illustrates the convergence between the Bitcoin ecosystem and Starknet, showing that concrete solutions are rapidly emerging. This kind of adoption is key to demonstrating the utility of Starknet as a natural extension of Bitcoin.
What is the timeline for Starknet's launch on Bitcoin?
In a few weeks, Xverse will be connected to Starknet, allowing users to transfer runes and mine Bitcoin assets on our network. This will mark the start of integration, with the ability to generate returns on Bitcoins deposited via various DeFi solutions.
In the longer term, STRK token staking will be able to include Bitcoin assets, contributing to network security. This process is part of the BTC-Fi incentive programme set up by the Starknet Foundation. Our approach is incremental, integrating features as they mature technologically and are adopted.
Why develop a Layer 2 for Bitcoin when Ethereum is already a good settlement network?
Bitcoin is an excellent store-of-value asset, as recently demonstrated by interest from the US government and financial institutions. However, it remains an inefficient medium of exchange due to its limitations in terms of scalability and transaction costs. A Layer 2 can improve these aspects and facilitate Bitcoin payments while guaranteeing greater confidentiality.
The aim is also to improve the expressiveness of the network. Today, many uses such as lending, borrowing and generating returns are largely dominated by Ethereum. By introducing these features to Bitcoin, we are enabling its economy to become more structured, while respecting its fundamental principles.
>> Read also - Abdel Bakhta (Starkware): "Waking up the Bitcoin community to the value of rollups"
"I believe that strengthening interoperability between Bitcoin and Ethereum will be beneficial for both networks" Can your system improve the confidentiality of Bitcoin transactions?
Yes, and this is a crucial aspect of the project. Today, it is already possible to make anonymised payments on Starknet. These mechanisms could be extended to Bitcoin transactions that pass through our network, offering users greater discretion in their exchanges.
However, our immediate priority is scalability and improving the user experience. Privacy will come gradually with the development of dedicated tools, which will be integrated as technology advances.
Are you not worried that Starknet on Bitcoin could compete with Ethereum and hinder its adoption?
On the contrary, I think that strengthening interoperability between Bitcoin and Ethereum will benefit both networks. Today, Bitcoin and Ethereum are largely siloed, which limits the possible synergies between these two major ecosystems.
By fostering their connection, we create an environment where Bitcoin can benefit from Starknet's technological advances, while Ethereum can welcome new flows of users and capital from Bitcoin. This approach avoids fragmentation and promotes the growth of the entire crypto ecosystem.
Do you work with specific partners such as Babylon or Lombard?
We talk to all the major teams interested in Bitcoin's scalability and extending its uses. This includes projects related to BitVM, as well as the main liquid staking initiatives on Bitcoin.
We will gradually announce our collaborations with these strategic partners. Our aim is to bring together a solid ecosystem, including both established players and new entrants who want to explore the opportunities offered by Starknet on Bitcoin.
"On Bitcoin, there is no dominant smart contract language like Solidity on Ethereum" Your Ethereum L2 has had trouble attracting large DeFi projects. How do you plan to avoid that this time?
One of Starknet's major challenges on Ethereum was the adoption of Cairo, our native programming language. Ethereum developers were used to Solidity and EVM, so this represented a barrier to entry.
On Bitcoin, this issue does not arise. There is no dominant smart contract language like Solidity on Ethereum. This should facilitate adoption by Bitcoin-native teams and make our technology more accessible from the outset.
Will there be a new Starknet token dedicated to Bitcoin?
No. There will be no new token. The current Starknet token will remain the only one used, and its role will not change. Starknet remains anchored to Ethereum and will simply expand to Bitcoin without changing its business model or usage framework.
Our priority is to ensure continuity and avoid any confusion or unnecessary speculation around a potential new token. Our strategy is clear: one technology, one token, and a natural extension to Bitcoin.
What is your approach to OPCAT and future Bitcoin developments?
We want to raise community awareness of the benefits of STARK proof verification on Bitcoin. OPCAT is one of the possible ways to do this. Our role is to educate about the benefits and challenges of these developments, but the final decision rests with the Bitcoin community.
We hope that Bitcoin will gradually adopt soft forks that improve its capabilities, particularly in terms of scalability and expressiveness. Innovation must not stop, and we want to contribute to this discussion in a constructive way.
Do you think the Ethereum L2 sector is becoming too crowded?
I'm not worried about this, as the market will eventually naturally sort out the most relevant solutions. This is a classic phenomenon in any emerging industry: at the start, many initiatives are launched, but only those that provide real value and find their audience manage to establish themselves in the long term. The same is true of Layer 2 on Ethereum.
It's like asking whether there are too many companies or too many startups. Competition drives innovation and better technology. Clearly, not all the L2s in existence today will survive, but this is a healthy process. Solutions that meet real user needs, make solid technical improvements and benefit from an active ecosystem will continue to thrive.
>> Read also - Unichain: Is Ethereum under threat if its big projects launch L2s?
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