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Home » Starknet Enters Bitcoin Layer2 Setting off a New Wave of Turmoil and Bloodshed
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Starknet Enters Bitcoin Layer2 Setting off a New Wave of Turmoil and Bloodshed

By adminJun. 6, 2024No Comments4 Mins Read
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Starknet Enters Bitcoin Layer2 Setting off a New Wave of Turmoil and Bloodshed
Starknet Enters Bitcoin Layer2 Setting off a New Wave of Turmoil and Bloodshed
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Once free from the constraints of the Ethereum mainnet, Starknet’s potential will no longer be limited to Layer2. Its underlying ZK technology, parallel transactions, Cairo language, and other high-performance foundations will demonstrate core advantages that distinguish it from other Layer2 solutions. This article is sourced from an article by Haotian, organized and written by PANews.

Summary:
OP_CAT variables
Advantages of Starknet
Layer2 gradually becoming Layer1
In short, the prerequisite for Starknet’s expansion beyond Bitcoin is the passage of the OP_CAT proposal, but there is uncertainty. Starknet entering the BTC Layer2 market could break the awkward situation where the BTC ecosystem is more prominent in the East than in the West. As the trend of Layer2 moving towards Layer1 intensifies, will high performance become a differentiating advantage for Starknet?

OP_CAT enables the combination and processing of multiple UTXO unlock script byte strings, significantly enhancing the programmable features of the BTC mainnet. With OP_CAT, script fragments can be combined, and STARK proof is a simple and efficient way of computing verification. With the foundation of OP_CAT, Starknet naturally has the ability to batch transactions to the BTC mainnet through STARK proof and conduct ZK Validity verification.

However, the passage of OP_CAT is uncertain, and even if it is passed, there are many unknown challenges in dealing with the combined verification processing of large-scale Layer2 transactions. Therefore, Starknet’s entry into BTC Layer2 can only be considered a narrative direction.

In theory, as long as OP_CAT is passed, not only Starknet, but other Ethereum Layer2 camps with ZK-Rollup capabilities can also join the queue. Other BTC extension solutions such as BitVM, AVM, RGB, RGB++, Lightning Network, etc., will also receive “gain Buffs”. Whether Starknet’s extension solution will have an advantage remains unknown.

I believe that regardless of the narrative or ambitious market application expansion, Starknet’s choice of the BTC Layer2 direction is a great boon for the overall BTC ecosystem. It can attract more Western capital attention to the BTC ecosystem and provide stronger support for the rationality of BTC Layer2 existence.

Moreover, a project like Starknet at this level can stimulate the implementation of OP_CAT, increasing the possibility of passing it. This high-profile move may involve some capital operations. (Although Bitcoin Core member Peter Todd has publicly criticized Starknet’s entry, adding new reasons against OP_CAT, claiming that it could have a destructive impact on Bitcoin.

On a positive note, driving the capital behind Starknet bullish on BTC Layer2, attracting ecosystem developers radiating from Starknet, and exploring and improving corresponding technical standards and new technologies in the BTC ecosystem will continue to enhance Starknet’s comprehensive capabilities and attract more capital and developers to the BTC Layer2 direction, with a “flagship” appeal.

I have previously written that with the modularization of DA layer, execution layer, and even settlement layer, Layer2 projects are gradually becoming Layer1. Now, even the most loyal Layer2 project of Ethereum, Starknet, has announced a “defection”, not because the child has grown up and is hard to manage, but because it’s time to move forward.

As OP-Rollup and ZK-Rollup have successively launched Stack strategies, lightweight deployment services such as “one-click chaining” and “Rollup as a Service” have lowered the cost and efficiency thresholds of launching Layer2 chains to unprecedented levels. The question is, with more chains, what happens if ecosystem applications and user growth cannot keep up?

The only way is to further develop the narrative of technical scalability. Recently, Starknet announced that it is the chain with the highest TPS, with fees reduced to $0.01, and supports parallel transaction processing. The upcoming Volition will further reduce DA costs, etc. However, who cares? These cannot bring new growth expectations to the market. On the other hand, if Starknet can break free from Ethereum and extend to Bitcoin application scenarios, it will be different.

Because once it breaks free from the constraints of the Ethereum mainnet, Starknet’s imaginative space will no longer be limited to Layer2. Its underlying ZK technology, parallel transactions, Cairo language, and other originally high-performance foundations will become its core advantages that distinguish it from other Layer2 solutions.

Because Layer2 needs to become Layer1, it must be based on ultra-high-performance technology, and Starknet is not lacking in technology. Obviously, from this perspective, it is difficult for the market’s expectations for Starknet not to increase. Who knows, one day Starknet may announce that it will become a unified ZK layer and become the ZK infrastructure for the entire chain environment.

Anyway, once it breaks free from the narrative constraints of Layer2, Starknet’s imaginative space will be greatly different.

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