Starknet is working on a plan to use Bitcoin as a settlement layer alongside Ethereum, creating a robust decentralized finance ecosystem on a single layer 2 network. This is a major step in connecting the two largest blockchains today, opening up deeper scalability and integration between Bitcoin and Ethereum.

Starknet Bitcoin Roadmap
On March 11, the Starknet Foundation released its Bitcoin roadmap, highlighting the goal of increasing Bitcoin's scalability from its current limit of 13 transactions per second to thousands of transactions per second. Bitcoin has historically been highly liquid and secure, but its limited programmability has hindered the development of decentralized finance (DeFi) applications. Starknet wants to change that by leveraging zero-knowledge proof (ZK-Proof) technology to enhance interoperability.

OP_CAT and the Bitcoin-Ethereum Bridge Solution
Starknet is pushing OP_CAT, a Bitcoin upgrade proposal that would allow users to set conditions for spending BTC through a zero-knowledge proof activation mechanism. Once OP_CAT is approved, it will facilitate a trustless bridge between Bitcoin and Starknet, allowing Bitcoin to participate in DeFi in a more flexible and secure way.

While waiting for OP_CAT to be implemented, Starknet will use BitVM, a solution for verifying transactions on Bitcoin without changing the underlying protocol layer. BitVM enables Bitcoin to execute smart contract logic, opening up new potential for DeFi applications on the network.

BTCFi Season and Strategic Partnerships
To support Bitcoin's expanding role in decentralized finance, the Starknet Foundation has launched BTCFi Season, a program to promote financial applications on Bitcoin. At the same time, Starknet is partnering with the Xverse Bitcoin wallet to enhance DeFi integration into the Bitcoin ecosystem, providing users with more effective digital asset management tools.

The Future of Bitcoin on Starknet
Starknet's plan marks an important step in expanding Bitcoin's usability in the DeFi space. If successful, Bitcoin will not only act as a store of value but also be able to participate in the decentralized financial ecosystem in a more flexible, secure and efficient way. This could be the premise for the DeFi market on Bitcoin to develop strongly in the near future.