Starknet introduces strkBTC to bring ‘private bitcoin’ and confidential DeFi transactions to its Layer 2 network

Starknet, an Ethereum Layer 2 network by StarkWare, is introducing strkBTC to facilitate shielded balances and confidential transfers for Bitcoin holders interacting with DeFi applications. The system issues strkBTC deterministically upon verifiable Bitcoin deposits, ensuring privacy is maintained at the protocol level without relying on custodians, which preserves auditability and composability. Co-founder Eli Ben-Sasson stated that strkBTC breaks the traditional performance-privacy tradeoff, allowing private Bitcoin exposure in DeFi without isolating capital. This initiative aims to unlock Bitcoin's utility by minimizing trust constraints, potentially attracting institutional capital hesitant about public exposure of proprietary strategies, thus integrating Bitcoin more actively into decentralized finance.

(Source：The Block)