One of the groundbreaking projects in the upcoming phase of Ethereum is ramping up work on the world’s original blockchain. This is significant because, to date, the majority of leading DeFi platforms are based on Ethereum. This partnership aims to deliver a “full DeFi experience to Bitcoin users,” which is a notable achievement for the cryptocurrency community. The project is partner with Bitcoin wallet Xverse, and the collaboration is expected to commence in the second quarter of 2025.
Similar to how Xverse has been advancing Bitcoin’s scalability using Starknet, Xverse’s partnership with Ethereum layer-2 cryptocurrency Starknet is significant. The development is part of an ongoing research effort by several initiatives, each aiming to optimize Bitcoin’s scalability and ensure its future potential in the DeFi space.
Starknet, as a blockchain layer-2 blockchain, is expected to play a key role in Bitcoin’s scaling. Its vision is that in the future, this casino-like structure will become an execution layer, handling the bulk of the transaction processing while eventually achieving final settlement through Bitcoin’s security. The goal of Starknet is to scale the network “from 13 terahashes per second (TPS) to trillions of transactions,” marking a significant leap in Bitcoin’s scalability.
Developers are increasingly exploring new strategies to harness the security and depth inside BTC to empower the broader DeFi and blockchain communities. The challenge lies in understanding how Bitcoin’s relative lack of programmability, compared to Ethereum and others, can be addressed. Layer-2 blockchain projects like Starknet aim to tackle this issue by addressing previous insecurities, bus each other providing a more programmable technological foundation.
For many observers, the missing piece is OP_CAT. A proposal known as OP_CAT was suggested as a way to unlock hitherto unseen programmability in Bitcoin, making Bitcoin’s DeFi functionality available. However, this concept, also known as Privacy sustaining cryptocurrency or PSC, is still considered speculative and not yet established within the Bitcoin community.
Despite concerns about its potential, OP_CAT holds great promise for disrupting Bitcoin’s existing ecosystem. It introduces zero-knowledge proofs (ZKPS), a cryptographic method that allows the deployment of zero-knowledge statements without revealing vital information. The inclusion of ZKPS in the future-centric operating proposal (BIP) could have significant implications for the adoption and scalability of Bitcoin’s DeFi technologies.
Xverse’s vision is to provide a client with a Bitcoin DeFi experience in its wallet using underlying trust assumptions. Its founder, Ken Liao, expressed this goal in his Tuesday announcement, highlighting the benefits that come with the Innocent idea of using zero-knowledge proofs and privacy advancements. The blockchain will allow Bitcoin users to engage in DeFi without the need for handling over-encrypted data, offering a secure and efficient infrastructure.
The collaboration between Xverse and Starknet is likely going to shape a new era in how DeFi is implemented within Bitcoin. Beyond the immediate development of a DeFi experience, there’s a potential for深交 approaches to be imposed when OP_CAT becomes a conventional Bitcoin improvement proposal. This would allow the contribution of ZKPS to the proponents’ ideal of using more deeply controlled cryptography to ensure security and privacy.
In summary, the partnership between Xverse and Ethereum layer-2 cryptocurrency Starknet is expected to have a profound impact on Bitcoin’s DeFi capabilities. By combining the strengths of both blockchain platforms and incorporating advanced features like ZKPS, the network will achieve scalability, security, zero-knowledge proofs, and more programmability. This integration will open up a new door for a more open, private, and versatile DeFi ecosystem within Bitcoin, challenging and revolutionizing the seven largest jurisdictions known as thebracea family.
