Starknet has introduced strkBTC, a Bitcoin wrapper that integrates enhanced privacy features for DeFi without sacrificing performance. This development promises to enable private Bitcoin transactions while maintaining composability.
Starknet has launched strkBTC, a new Bitcoin wrapper that promises to bring enhanced privacy features to decentralized finance (DeFi) without compromising on performance.
strkBTC allows for shielded balances and transfers, enabling private Bitcoin transactions within DeFi ecosystems.
“Typically, there is a performance-privacy payoff. We are breaking that… there are many 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 emphasized that strkBTC maintains composability, allowing users to move Bitcoin through DeFi with private balances and transfers without isolating capital.
The strkBTC protocol focuses on privacy at the protocol level, incorporating selective disclosure for risk management. This approach is not a mixer or third-party wrapper; instead, tokens are issued deterministically in response to verifiable Bitcoin deposits.
Additionally, strkBTC plans to support Bitcoin staking on Starknet, enabling users to earn yield while maintaining shielded balances.
This move aligns with StarkWare’s broader mission of providing scalable and privacy-focused solutions in blockchain.
Starknet is the fifth-largest Ethereum-based layer 2, with about $560 million of total-value locked.
This article was generated with the assistance of AI workflows.
Source: https://thedefiant.io/news/defi/starknet-launches-strkbtc-to-advance-bitcoin-privacy-in-defi
