'Private Bitcoin' to Launch on Starknet With Zcash-Like Features
Starknet announced the launch of strkBTC, a privacy-focused, wrapped Bitcoin token for its Ethereum layer-2 network. StrkBTC enables users to shield their Bitcoin balances and confidentially transfer tokens, while maintaining compatibility with decentralized finance applications. Users can stake strkBTC on Starknet to earn rewards. The token leverages zero-knowledge proofs, similar to Zcash, allowing for both public and private addresses, compliance flexibility, and optional auditing through a viewing key. Access to strkBTC is provided via an atomic swap-powered bridge developed by Atomiq Labs, avoiding centralized middlemen and enhancing security. Privacy is integrated at the protocol level, not managed through wallets or off-chain services. The viewing key, held by a third-party, allows for regulatory compliance. Starknet is increasing its focus on Bitcoin-based assets, now supporting Bitcoin staking for security and rewards in STRK tokens. Recently, the network faced operational outages and STRK’s price has dropped significantly, nearing an all-time low.
