To tackle Bitcoin's scalability issues, which limit its use due to slow transaction speeds and high fees, StarkWare is exploring various solutions.

The company plans to enhance Bitcoin integrations and partnerships, positioning Starknet as a crucial bridge between Bitcoin and Ethereum to increase liquidity and adoption across both platforms.

The Braavos wallet has now integrated support for Lightning Network payments, enabling faster and cheaper Bitcoin transactions on Starknet.

StarkWare advocates for OP_CAT, a proposed Bitcoin soft fork that would facilitate trustless Bitcoin-to-Starknet bridges, although this remains a contentious topic due to security concerns.

Valued at $8 billion, StarkWare is intensifying its focus on Bitcoin research and development, particularly following the U.S. government's recent push for a Strategic Bitcoin Reserve.

StarkWare has launched a Strategic Bitcoin Reserve, committing to bolster its treasury holdings in Bitcoin to integrate it into the Starknet Layer 2 network.

Through these innovations, StarkWare aims to expand Bitcoin's utility beyond being a mere store of value, fostering new financial applications while ensuring security and decentralization.

Alternatives being considered include a federated multisig system for securing Bitcoin and a BitVM-based solution that employs cryptographic dispute-resolution to minimize trust.

Additionally, the integration of Xverse, a Bitcoin wallet that supports Ordinals and Runes, will allow the use of Bitcoin assets on the Layer 2 network for the first time.

CEO Eli Ben-Sasson noted that StarkWare is setting a precedent for blockchain firms by holding Bitcoin, reflecting a growing trend within the crypto industry.

As part of this initiative, StarkWare is introducing BTCFi Season to familiarize Bitcoin holders with decentralized finance (DeFi) applications, including lending and yield farming.