Starknet on Bitcoin and Ethereum: The first L2 to unify both chains

Bitcoin’s role as a static store of value has limited its utility beyond basic transactions. Starknet aims to expand Bitcoin’s functionality by serving as its Layer 2 execution environment, bringing scalable smart contract capabilities and interoperability with Ethereum. By settling on both chains, Starknet introduces a unified platform capable of hosting complex applications that bridge the liquidity and ecosystems of Bitcoin and Ethereum.

Key Ideas

Starknet as Bitcoin’s Execution Layer: Starknet scales Bitcoin's throughput from ~13 TPS to thousands, enabling new financial use cases like collateralization and yield generation.
Cross-Ecosystem Settlement: The initiative allows developers and users to interact across both Bitcoin and Ethereum natively, fostering asset mobility, unified liquidity, and broader application utility.

Developers have a great opportunity to experiment with Cairo and deploy dApps that utilize Bitcoin on Starknet. Combining Layer 2 scalability with Bitcoin’s liquidity enables creation of decentralized exchanges, lending platforms, or NFT markets that span both ecosystems.