Starknet Introduces strkBTC for Confidential DeFi Transactions

Starknet, an Ethereum Layer 2 network, has introduced strkBTC, a wrapped Bitcoin asset designed for confidential decentralized finance (DeFi) transactions. The launch of strkBTC is an important milestone for Bitcoin in DeFi, as it helps to overcome one of the biggest hurdles to Bitcoin adoption: the absence of privacy.

The strkBTC system allows institutions, businesses, and traders to use Bitcoin as a productive financial asset while remaining anonymous. However, the system is designed to ensure auditability and regulatory compliance through viewing keys that allow for reconstruction of activity according to regulations, audits, or legal inquiries.