Starknet has launched strkBTC, a new Bitcoin wrapper that promises to bring enhanced privacy features to decentralized finance (DeFi) without sacrificing performance.
strkBTC enables shielded balances and transfers, enabling private Bitcoin transactions within DeFi ecosystems.
“Normally there’s a performance-privacy payoff. We’re breaking that… there are a lot of traditional Bitcoin wrappers, but strkBTC adds something different: privacy, delivered by the most privacy-literate team in the space,” said Eli Ben-Sasson, co-founder of StarkWare.
Ben-Sasson highlighted that strkBTC maintains configurability, allowing users to move Bitcoin via DeFi with private balances and transfers without isolating capital.
The strkBTC protocol focuses on privacy at the protocol level and includes selective disclosure for risk management. This approach is not a third-party mixer or wrapper; instead, tokens are issued deterministically in response to verifiable Bitcoin deposits.
Additionally, strkBTC plans to support Bitcoin staking on Starknet, allowing users to earn yield while maintaining ring-fenced balances.
This move aligns with StarkWare’s broader mission to provide scalable and privacy-focused solutions in blockchain.
Starknet is the fifth largest Ethereum-based layer 2, with a total value of approximately $560 million.
This article was created using AI workflows.