Starknet, an Ethereum layer 2, is planning to settle transactions on both Bitcoin and Ethereum to integrate these two major blockchains. As outlined in their March 11 Bitcoin roadmap, Starknet intends to scale its transactions from 13 per second to thousands, thereby enhancing user experience through reduced blocks and gas fees. The Starknet Foundation emphasizes that while Bitcoin is often perceived as a store of value, there exists a significant demand for it to support more complex applications. They aim to introduce smart contracts on Bitcoin, potentially enabling functions like staking, borrowing, lending, and yield farming. Additionally, StarkWare will collaborate with Xverse to enhance Bitcoin’s functionality, targeting a DeFi expansion on the network by the second quarter of 2025. Ethereum co-founder Vitalik Buterin supports the initiative, recognizing the potential for improved crypto payments and trustless asset flow between Bitcoin and Ethereum ecosystems. He highlights the limitations of the current Bitcoin infrastructure and proposes layer 2 solutions as a viable way forward.

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