Starknet, a layer 2 scaling solution, is bridging Bitcoin and Ethereum by settling transactions on both networks. For Bitcoiners, this means using your BTC in decentralized finance (DeFi) without compromising security. Imagine earning yield on your BTC, borrowing through platforms like Vesu or staking Lombard's LBTC to secure Starknet, all while keeping Bitcoin’s trustless ethos intact.
Starknet, a network based on Maths
Starknet is a layer 2 scaling solution that scales Ethereum and, soon, Bitcoin. It batches thousands of transactions offchain, using cryptographic proofs called STARKs to ensure their validity. These proofs, like Bitcoin’s hash functions, are based on pure mathematics and are verified today on Ethereum.
With upcoming Bitcoin upgrades like BitVM and OP_CAT, Starknet will settle directly on Bitcoin, becoming the first layer 2 to bridge both Bitcoin and Ethereum for greater security (learn more about this roadmap in this article "Starknet Bitcoin scaling".)
A potential concern for Bitcoiners is Starknet’s reliance on a single sequencer to order transactions, which sounds less decentralized than Bitcoin. However, STARK proofs guarantee that no one can manipulate transactions and anyone can verify them on Bitcoin or Ethereum. Starknet’s roadmap plans to transition to a network of sequencers, further aligning with Bitcoin’s decentralized philosophy.
What makes STARKs compelling is their simplicity and security: pure math, no trusted third parties, just like Bitcoin. Starknet’s goal is scalability. Bitcoin processes around 5 transactions per second (TPS), limited by block size and time. Starknet can theoretically handle thousands of TPS, akin to high-throughput sidechains like Liquid or RSK, or payment channels like the Lightning Network. However, unlike the aforementioned sidechains, Starknet is a general-purpose network. That means it has smart contracts, DeFi, and much more.
Starknet accounts
Starknet and Bitcoin accounts are somewhat similar. Both utilize elliptic curve cryptography, though Starknet employs a distinct curve, maintaining the use of private and public keys.
The key difference lies in the "wallet" or "account" model. On Starknet, there is no UTXO. An account-balance system is used. A user’s balance is not the sum of all unspent transaction outputs tied to their public key. Instead it is a single number: the balance. For example, Bob's address has 10 BTC. A payment reduces the sender’s balance by the transaction amount.
Transfers on Starknet are in fact, interactions with a smart-contract. A transfer of LBTC from Alice to Bob consists in Alice invoking the transfer function on the LBTC smart-contract, decreasing her balance and increasing Bob's. This, of course, is abstracted by Starknet wallets like Ready Wallet.
Bitcoin's UTXO scripting system offers more programmable transaction logic than Ethereum’s native externally owned accounts (most often referred to as EOA). Starknet takes this concept even further, going beyond what Taproot enables.
On Starknet, every account is actually a smart contract, a piece of code that runs directly on the network. Since it is a program, users are able to configure how they would like their funds to be accessed. Do they need a multisig? Sure, code it or preferably use Ready Wallet's. Do they need to add a timelock condition? Ok, extend Ready Wallet's smart-contract.
From Bitcoin to Starknet
This section explains the first step of your Starknet journey. It starts by downloading and creating an Ready Wallet.
Create your Ready Wallet
Download Ready Wallet (Starknet wallet) by clicking on this link. Then, you’ll land on this page.
Create a password and then choose your account account. We strongly recommended using a smart account because they have two-factor authentication (2FA). When enabled, 2FA will use your email as a second layer of protection for your funds, preventing an attacker from doing anything with your account even if your seed phrase is stolen.
A standard account works fine too if you prefer full self-management.
Once your account is created, open Ready Wallet by clicking on the extension icon on the top-right hand side of your browser.
And there you go. you've successfully created a Ready Wallet. In this example the address of the account is 0x077d…
Enjoy your Starknet journey
We have seen that creating an Ready Wallet is a straightforward process. You can now enjoy your Starknet journey interacting with DeFi apps like Vesu or Ekubo. Stay tuned for upcoming articles exploring the bridging process as well as multisig, which will further enhance your experience on Starknet.
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