StarkWare to Boost Bitcoin with $1M R&D Fund

StarkWare, the trailblazer behind the renowned Ethereum layer-2 solutions StarkNet and StarkEx, has unveiled an ambitious initiative to amplify Bitcoin’s capabilities using zero-knowledge rollups. In a significant move to advance this goal, the Israeli-based company announced a $1 million research and development fund on Tuesday.

Eli Ben-Sasson, CEO and co-founder of StarkWare, expressed his vision in a statement: “Bitcoin today is mighty, but still a fraction of what it can be—I want to see the full works. Scale Bitcoin and we unleash blockchain’s power to transform the world.” This sentiment underscores his commitment to not only enhance Bitcoin’s functionality but also to elevate its impact on global blockchain applications.

Central to this initiative is StarkWare’s plan to reintegrate the OP_CAT command on the Bitcoin blockchain. OP_CAT, which was previously removed, could enable developers to set specific conditions for Bitcoin transactions, facilitating functionalities such as automated payments and reversible transactions—features commonly associated with smart contracts on other blockchain platforms.

Ben-Sasson explained the rationale behind supporting the OP_CAT proposal: “We’re supporting OP_CAT because we believe Bitcoin should play a more central role in society, and we believe that the OP_CAT Bitcoin soft fork is the safest path for Bitcoin to scale, notably enabling STARK and rollups.”

StarkWare’s approach involves applying the scalability solutions tested and proven on Ethereum to Bitcoin, aiming to preserve the principles laid down by Bitcoin’s pseudonymous creator, Satoshi Nakamoto. Ben-Sasson emphasized, “The STARK cryptography we are proposing can deliver everything Satoshi envisioned, including the cheap everyday micro-payments discussed in the Bitcoin White Paper.”

Last year, StarkWare began testing zero-knowledge proofs on Bitcoin, demonstrating a commitment to making its cutting-edge technology accessible through an open-source license. Despite its historical focus on Ethereum, Ben-Sasson clarified their broader mission: “StarkWare is often mistaken for being an Ethereum maxi, though actually, we are scaling maxis.”

The significance of StarkWare’s efforts is amplified by the potential unlocked by recent developments such as the Bitcoin Taproot upgrade and the proposed reintroduction of OP_CAT. These advancements pave the way for deploying a wide array of applications over Bitcoin, which was previously unfeasible.

StarkWare is not only investing in the future through the $1 million grant but is also preparing practical plans for deploying STARK scaling on Bitcoin. They plan to maintain a public repository of OP_CAT-based code to showcase its potential applications.

Ben-Sasson’s passion for cryptocurrency as a transformative force is evident: “I left academia because I’m convinced that crypto can clean up the digital world and finance. It can deliver integrity to money and rebalance power in our society, taking it away from big tech and restoring it to sovereign individuals.”

This initiative by StarkWare may well catalyze a new era for Bitcoin, unlocking the full potential of blockchain technology to revolutionize the digital and financial landscapes.