Bitcoin Staking Debuts on Ethereum Layer-2 Starknet With STRK Incentives

Bitcoin It became a core part of Starknet’s ecosystem on Tuesday. Ethereum Layer 2 Network According to a press release, they have begun using assets as a way to secure themselves.

Starknet users can now participate in the process of verifying transactions by delegating Bitcoin to the network to earn network rewards. Previously, StarkNet users could only wager native Strk tokens.

The company also said that London-based investment company RE7 is building a Bitcoin-denominated yield product on StarkNet. The Starknet Foundation is planning to use 100 million STRKs to promote Bitcoin-related activities on the network, Starkware added.

If Bitcoin is flawed, then the assets are “too much huddle,” said Eli Ben Sasson, co-founder and CEO of Starkware. DecryptionIt uses the misspelling of “hold” which has been making noises for the most recent unchanging cryptocurrency investors.

Ben Sasson said Bitcoin is “untouched capital,” but said that asset usage is limited within its territory so far Decentralized financeor defi, because the central exchange historically had a good scale, a good user experience, and dirt cheap price.

As Bitcoin borrowing uses become more common, Benthasson said Starknet is “completely aligned to become the financialization layer and the Bitcoin execution layer.”

This year we have Crypto Exchange Coinbase Lean Ethereum Layer-2 network-based service that connects customers with the lending protocol morpho. According to the dunes, loans worth around $1 billion have been generated through the arrangement. Dashboard.

Starkware stresses that Bitcoin staking StarkNet does not require users to waive custody of their assets, and argues that its approach does not make security trade-offs.

Starkware places StarkNet as Bitcoin Layer-2, but the network’s staking capabilities have design elements that are not perfectly aligned with the Bitcoin maximalists, who often believe that all other cryptocurrencies are inferior and should be considered “shit.”

For example, those who bet Bitcoin on Starknet will receive Starknet’s native token and Starknet’s native token. Other projects that bring programmerism to Bitcoin, such as Goat Network, pay primarily with Bitcoin, but also use native tokens for incentives.

As of Monday, STRK had a market capitalization of $498 million, according to the Crypto Data Provider. Coingecko. Asset prices have fallen 74% to $0.122 over the past year. In 2024, STRK hit a record high of $4.41 a month after its debut.

Israel-based company I said Last June, it raised $1 million to enter the Bitcoin scaling space. At the time it came out in favor of restoration op_catsome believe that commands within Bitcoin’s programming language can unlock innovation.

StarkNet uses specific ones Zero knowledge proof A system introduced by Ben Sasson in 2018. The system owned by Vitalik Buterin, co-founder of Ethereum I said Advanced forms of encryption can be key to balancing privacy with regulatory compliance.

Ben Sasson said he’s interested in using zero knowledge proofs to scale Bitcoin since discovering it in 2013, but Ethereum has been the easiest blockchain from the start.

“I think there’s a much higher need for things like this on the Bitcoin side,” he said. “We haven’t left Ethereum, but our main goal for 2025 and 2026 is to serve Bitcoin in the best possible way.”