Discussing the Impact of OP_CAT and STARK on Bitcoin Network Scaling and Settlement: A Conversation with StarkWare Founder Eli Ben-Sasson
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Discussing the Impact of OP_CAT and STARK on Bitcoin Network Scaling and Settlement: A Conversation with StarkWare Founder Eli Ben-Sasson
This conversation delves into the impact of OP_CAT and STARK on Bitcoin network scaling and settlement.
Navigating Web3 tides with focused insights
OP_CAT has been approved as a Bitcoin Improvement Proposal (BIP), sparking widespread discussion within the Bitcoin community.
Starknet recently announced its entry into the Bitcoin ecosystem, planning to achieve settlement on the Bitcoin network within six months of OP_CAT's merge, upgrading to a Bitcoin scaling layer that will boost Bitcoin’s transaction capacity to thousands per second, while launching a million-dollar fund to support related research.
As transaction volume and market capitalization grow on the Bitcoin network, the Bitcoin ecosystem is gradually showing signs of diversification. High fees and delayed confirmations caused by network congestion have made Layer 2 solutions for Bitcoin increasingly necessary—drawing attention due to their innovation and potential. Research around OP_CAT and ZK on Bitcoin has further inspired broader exploration of Bitcoin Layer 2 networks.
What impact will OP_CAT bring to the Bitcoin ecosystem? How can zero-knowledge proofs enable secure and efficient Bitcoin Layer 2 networks? How can we unlock liquidity from long-held Bitcoin? And how can Bitcoin assets enhance the security of PoS services?
During the Hong Kong Web3 Festival, Eli Ben-Sasson, founder of StarkWare, visited several projects across Asia and held a private dialogue with Luke Wang, co-founder of Chakra, discussing in depth the implications of OP_CAT and STARK for Bitcoin scaling and settlement.
Chakra is a trustless Bitcoin settlement network powered by ZK technology, with its re-staking protocol as a flagship application. Leveraging ZK-STARKs and middleware chains, Chakra establishes a modular native paradigm for the expanded Bitcoin ecosystem from day one. This enables other Bitcoin Layer 2 solutions to focus solely on execution, bypassing the complexity and challenges of building Bitcoin settlement infrastructure. Chakra provides a shared settlement layer for participants in the Bitcoin ecosystem, unlocking interconnected liquidity and economic security. Bitcoin L2s and decentralized applications (DApps) benefit from strong network effects through a secure, dynamic, and robust liquidity environment.
Excerpts from the conversation:
Luke:
With the rise of the Bitcoin ecosystem, Chakra—the first mature project deployed on Starknet Madara—has recently drawn significant market attention. Back in February, many thought it might only gain traction in Asian markets, but after StarkNet’s StarkCity event at ETH Denver, Western interest began to grow. Now, the trend seems clearer. We’ve been reflecting on key questions, such as how to sustainably develop the Bitcoin ecosystem over the long term.
Eli:
So what do you think the market or investors expect from you? What excites you most about the future?
Luke:
What we’re observing may not be just about Bitcoin itself, but everything surrounding it. Typically, there’s a pattern: a growth phase followed by a downturn. For most projects, if they can survive operationally, they can continue. But in this particular cycle, a critical factor is OP_CAT—a topic I know your team has also been deeply involved in.
Through Chakra, we've built strong connections with many miners. I believe that post-OP_CAT, the ecosystem value of Bitcoin might no longer lag behind Ethereum. In a system rich with programmability, this could represent a solid economic model. However, even under the most optimistic projections, achieving this may take at least 12 to 24 months.
Eli:
That’s not long at all. If we can achieve it within 24 months, that would still be excellent. I believe we’ll ultimately succeed both technologically and commercially. We’re already seeing early signs of success in both areas. Yet some assumptions we held over the past five years might shift in the next five. Perhaps only one out of many ideas will succeed, while most won’t progress significantly. Amid this market frenzy, you must be crystal clear about what you want to build. If you say you want to do something groundbreaking on Bitcoin, we all know it’ll take at least two years. Look at Starknet—we started with maybe 100 engineers and now have 170, yet we’re still pushing hard, still very much in the early stages.
Bitcoin still has many gaps—for instance, how to manage state? That alone will likely take at least two years. But my advice is to ride the wave: if you're prepared, now is a great time. Act immediately—bring in top-tier investors while maintaining technical independence.
Luke:
What aspects of OP_CAT research and discussion excite you most for Bitcoin? And how can Starknet make a bigger impact?
Eli:
Alright, let's assume OP_CAT succeeds thanks to our efforts. A major challenge then becomes state management and adaptability. Starknet is an account-based system, well-aligned with Ethereum. Now imagine connecting that tech to Bitcoin’s UTXO model—much will be missing. You need to adapt and transform it to make it viable. This is where Bitcoin Layer 2 comes in, using validity proofs to achieve the same level of security as Layer 1.
Luke:
Exactly. We want Bitcoin to truly secure the state of Layer 2, achieving equivalent security.
Eli:
It sounds extremely difficult. Due to block size limits, Bitcoin handles far less data than Ethereum.
Luke:
Actually, for DA (data availability), current block sizes are acceptable—even cheaper than Ethereum pre-EIP-4844. People have tested it, which is why the number of Bitcoin Layer 2s is growing rapidly.
Eli:
With OP_CAT, you can now do things that are truly secure. People often chase cyclical trends and meme crazes, dropping everything to launch as many memes as possible. The problem with that approach is, if you want to accomplish something meaningful, you need to commit strategically to seize these opportunities. So you must make strategic choices: when the hype is here, do you ride the wave or stay focused on technology as your core driver?
Luke:
Ideally, we aim to combine both. That’s why we’re considering launching a STARK-powered Bitcoin Layer 2 as soon as possible. We understand the cycle—Bitcoin’s ecosystem explosion is coming fast. Look at Asia’s development; now might be Asia’s moment. That’s why we’re pleased with the rapid launch of Chakra’s Phase 1 Devnet.
Eli:
So will Chakra have its own Layer 2? I understand you’ll use Babylon and build your own re-staking protocol.
Luke:
Babylon is a highly respected pioneer in Bitcoin staking, and we’ve established deep collaboration with them on both market and technical fronts. Together with Babylon, Chakra aims to unlock Bitcoin’s liquidity and reshape the crypto landscape. Our re-staking isn’t just ordinary staking—it’s designed to enable more secure cross-chain interoperability, since fully trustless bridges don’t yet exist. Chakra will leverage Babylon’s economic security and serve as a shared settlement layer for various Bitcoin Layer 2 networks.
Eli:
Alright, so on top of that, you’ll use Madara to implement a re-staking protocol connecting all other L2s, and then enhance security via STARK verification?
Luke:
Exactly. Earlier talk about state reminded me of provers. Currently, SHARP on Cairo is the most mature proof system, but before OP_CAT passes, Bitcoin cannot verify STARK proofs.
Eli:
Yes. Without OP_CAT, efficiency suffers. So what’s your short-term plan, given OP_CAT clearly won’t go live anytime soon?
Luke:
We’re focusing on two things: improving efficiency and enhancing security. First, we believe validation can happen directly on the Chakra Network. So Chakra isn’t just another Layer 2 chain—it’s a decentralized, shared Bitcoin settlement layer serving multiple Bitcoin L2s and Madara app-chains. Thus, verification can occur on Chakra, though unfortunately not yet on Bitcoin itself. Additionally, we’re thinking about how to steer the project toward long-term significance, not just short-term wins. Short-term plans aren’t bad, but in the Starknet ecosystem, people generally aim for enduring goals.
Eli:
Yes, you’re absolutely right. In this context, finding the right balance between security and speed of implementation is crucial. Sometimes, rushing ahead may compromise security—this requires careful trade-offs. If your team prioritizes long-term vision and security, maintaining this balance throughout development is key. Having a POC or testnet is indeed a smart strategy—it demonstrates technical maturity and reliability beyond mere concept. End users often care more about usability and stability, so battle-tested products are more appealing. As your team explores these paths, pay close attention to how you balance speed and security to meet diverse user needs and expectations. This approach helps build an ecosystem with lasting potential.
Amid the growing vibrancy of the Bitcoin ecosystem, Bitcoin Layer 2 networks are poised to become among the most critical infrastructures in crypto. Chakra will continue to prioritize technology, while valuing ecosystem and market dynamics, delivering safer, more efficient, and accessible services to every crypto user. By providing a decentralized shared settlement layer for L2s, expanding the Bitcoin ecosystem, and collaborating with the Starknet ecosystem, we aim to unlock the full potential of Bitcoin’s 21 million supply.
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