TLDR:

• • Starknet v0.14.2 introduces SNIP-36, enabling native in-protocol STARK proof verification on mainnet.
  • STRK20 allows any ERC-20 token on Starknet to operate with encrypted balances and shielded transfers.
  • strkBTC lets bitcoin holders access DeFi on Starknet without exposing their full wallet transaction history.
  • SNIP-37 rebalances network economics by raising storage costs while lowering base L2 gas prices for users.

Starknet v0.14.2 is now live on mainnet, introducing native privacy infrastructure to the network. The upgrade adds in-protocol proof verification, enabling confidential transactions at the protocol level.

It also paves the way for STRK20 and strkBTC, two privacy-focused asset frameworks. Together, these changes position Starknet as a privacy-preserving rollup rather than a standard high-performance chain.

In-Protocol Proof Verification Changes How Starknet Handles Privacy

At the core of v0.14.2 is SNIP-36, which brings native proof verification to the protocol. Previously, verifying a STARK proof on Starknet required a smart contract, which was not practical.

STARK proofs are large, often containing tens of thousands of field elements. That size made them incompatible with the network’s maximum transaction limits.

Developers had no clean path forward under the old system. Splitting proofs across multiple transactions was slow, complex, and expensive.

The official release notes described the previous approach as “prohibitively slow, complex, and expensive.” With v0.14.2, transactions now reference off-chain execution proofs directly through new proof and proof_facts fields in the Invoke V3 transaction structure.

Starknet’s consensus layer handles verification natively under this new model. Users can now prove fund ownership or transfer rights without exposing their balance.

The protocol states that “privacy becomes as seamless as a standard transfer” with this native support in place. Transaction history also remains shielded from public view on the network.

This change removes the biggest barrier to practical privacy on Starknet. Without native support, any privacy solution would have been too slow and costly to deploy at scale.

STRK20 and strkBTC Are the First to Use the New Framework

STRK20 is a new framework that allows any ERC-20 token on Starknet to operate privately. Thanks to v0.14.2’s ability to verify S-two proofs, tokens can now support encrypted balances.

Per the release announcement, users can now “swap, stake, and send any ERC-20 token while keeping your financial footprint shielded.” This applies from day one of the framework’s availability.

strkBTC builds on this same infrastructure for bitcoin holders specifically. The upgrade allows BTC to be used in DeFi applications without exposing a user’s full bitcoin wallet history.

According to Starknet, the result gives bitcoin holders “hard money that is both private and productive.” This opens BTC participation across the broader BTCFi ecosystem on Starknet.

Both frameworks operate with a compliance layer in place. A third-party audit firm will hold a viewing key. Subject to valid legal or regulatory requests, that firm may share individual transaction data with relevant authorities.

Beyond privacy, v0.14.2 also addresses network economics through SNIP-37. The update raises storage costs while reducing base L2 gas prices.

SNIP-13 upgrades StarkGate token contracts to version 3.0.0, aligning ERC-20 events with industry standards and preparing for the decentralized validation phase outlined in SNIP-33.