# The Challenges with Bitcoin Staking Bitcoin, with its trillion-dollar market cap (over half of all cryptocurrencies combined), is often considered the backbone of digital assets. Yet, despite its dominance, only a small fraction of Bitcoin is staked. In contrast, nearly 28% of Ethereum’s supply is staked, unlocking billions in economic activity. If Bitcoin holders staked even a fraction of their holdings at similar levels, it could unlock hundreds of billions in value. So why the disparity? The answer lies in the 3 unique challenges of Bitcoin staking: * Cross-Chain Complexity: Staking Bitcoin typically requires cumbersome cross-chain transactions, making it difficult for users to engage in staking activities. * Limited Programmability: Unlike Ethereum, Bitcoin lacks native smart contract functionality, limiting the ability to create sophisticated staking protocols. * Liquidity Issues: Bitcoin holders often find it challenging to maintain liquidity while participating in staking, discouraging broader participation. These issues have made it difficult for Bitcoin holders to access staking rewards while maintaining liquidity. This is where the Staking Abstraction Layer (SAL) steps in. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.solv.finance/staking-abstraction-layer-sal/overview/the-challenges-with-bitcoin-staking.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.