Starknet over Bitcoin: Vitalik, Dan Held, and Jeremy Rubin react

Bitcoin’s limited scalability has restricted its role to simple transactions and passive storage of value. Starknet proposes a breakthrough by introducing a Layer 2 execution environment directly settling on Bitcoin, which is achieved without altering its base layer. By leveraging Zero-Knowledge proofs this initiative brings programmability, DeFi mechanics and cost-efficient scalability to Bitcoin, bridging it with Ethereum’s ecosystem while maintaining core principles of decentralization and security.

Key Ideas

Layer 2 Execution on Bitcoin: Starknet enhances Bitcoin’s transaction throughput and utility by enabling borrowing, staking, and DeFi operations—all executed securely off-chain but settled on Bitcoin.
Decentralization and Network Innovation: Starknet’s integration promotes decentralization across mining pools and exchange mechanisms, and encourages cross-chain development of dApps and financial primitives rooted in Bitcoin’s security model.

Developers have a great opportunity to integrate Starknet into Bitcoin-native applications to unlock advanced transaction logic. Utilizing Zero-Knowledge technology for Layer 2 execution enables design of secure and composable payment flows with minimal gas overhead.