On starknet Introducing a new feature that enables Bitcoin holders Bet assets on an Ethereum-based Layer 2 network.
Announced on September 30th, the update marks what the team calls the first unreliable way to staking BTC beyond the original blockchain. Through this program, participants can delegate tokenized versions of Bitcoin, earn staking rewards, and contribute to Starknet’s security without waiving custody of the coin.
Bitcoin itself is not designed for staking. Its demonstration system keeps miners at the heart of verification and leaves little room for holders to gain direct yields. Starknet circumvents this restriction by accepting enveloping representations of Bitcoin such as WBTC, TBTC, Liquid Bitcoin, and SolVBTC.
These assets can be integrated into StarkNet’s consensus process and are protected by ZK-Stark encryption. In particular, the technology is widely recognized for its speed and mass resistance.
The initiative is also linked to Starknet’s broader ambition to become the execution layer of Bitcoin. In recent tests, the team used Circle Starks to verify the full header chain of Bitcoin in 25 ms with the Raspberry PI, demonstrating real performance.
StarkNet has also launched a decentralized sequencer and is working with researchers at BITVM to investigate the next generation of Bitcoin scaling solutions.
Will this make Bitcoin productive?
starknet The upgrade said it aims to correct the dazzling imbalance that left most of Bitcoin’s $2 trillion market capitalization Inactive in the base chain.
According to the company, about 98.5% supply Ethereum is currently developing a thriving staking economy with more than $38 billion. one third of circulating supply.
Bitcoin’s comparable sector is relatively small, at around $2.5 billion, with only 58,500 BTC in circulation.
Starknet argued that immersing Bitcoin on the network will help redirect some of this dormant value by allowing BTC holders to gain new yield opportunities and add a deeper security base for Ethereum Layer-2.
Investors usually accept slimmer returns, as BTC is considered relatively lower risk than most digital assets. This dynamic allows BTC to efficiently complement Starknet’s native token, Strk. This is because protecting your network with Bitcoin is less expensive than relying solely on STRK.
Developers argue that this design can start a reinforcement cycle as more Bitcoin is transferred to StarkNet, which increases liquidity and network security.
This increased liquidity will make StarkNet’s ecosystem more attractive to builders and asset owners, increasing STRK participation. At the same time, the higher STRK’s involvement, the higher the overall reward pool, making Bitcoin more attractive and attractive, and even attracting BTC to the system.
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