Starknet is a decentralized ZK-rollup scaling solution on Ethereum, enhancing speed and reducing costs.

The growing demand for blockchain technology has exposed limitations in scalability and privacy, particularly within Ethereum’s network. To address these challenges, Layer 2 scaling solutions have become essential. These solutions are designed to process transactions off the main Ethereum chain, enhancing throughput and reducing costs while maintaining security. Additionally, they aim to bolster privacy measures, protecting user data from public exposure. Starknet, a prominent Layer 2 solution, leverages cutting-edge cryptographic techniques to fulfill these needs, offering a robust framework for scaling Ethereum applications efficiently.

What is Starknet (STRK)?

Starknet’s origins trace back to StarkWare Industries, established in 2018 by technologists and academics, including Eli Ben-Sasson, a founder of Zcash and a professor at Technion–Israel Institute of Technology. StarkWare, based in Israel, was launched to enhance blockchain scalability and privacy through advanced cryptographic proofs known as zk-STARKs. Amidst these developments, Ben-Sasson faced a legal challenge over intellectual property claims from Technion, leading to a settlement and his subsequent departure from the institution.

StarkWare introduced StarkEx in 2020, a permissioned scaling solution that laid the groundwork for what would eventually become Starknet. StarkEx was swiftly adopted by platforms like dYdX and Immutable X, demonstrating the technology’s potential. Building on this foundation, StarkWare developed Starknet, a permissionless Layer 2 scaling solution to improve Ethereum’s scalability. Starknet was officially launched with its genesis block in November 2021, marking a significant milestone.

A year after its genesis block, in November 2022, the Starknet token (STRK) was launched on the Ethereum Mainnet. It was not until February 2024 that the tokens were made publicly available, highlighting the project’s cautious approach to expansion and utility.

Starknet’s journey from a concept to a foundational blockchain innovation was fueled by substantial funding rounds from heavyweights like the Ethereum Foundation, Paradigm, and Sequoia Capital, securing its position as one of the most well-funded entities in the blockchain space within just a few years of its inception. This funding and strategic planning have enabled Starknet to offer significant reductions in transaction fees and improved network stability as it evolves.

How Does Starknet Work? Sequencers & Provers and ZK-Rollups

Starknet’s operational efficiency in blockchain technology is advanced by its two primary components: Sequencers and Provers, working seamlessly within its Layer 2 framework. Sequencers are akin to Ethereum nodes but have enhanced capabilities, including processing and ordering transactions into blocks. They act as the first checkpoint, where transactions are gathered in a mempool, and arranged, and only successfully validated transactions can proceed. This selective approach ensures that only viable transactions are included in the proposed blocks, thus maintaining high data integrity standards and reducing the congestion associated with block creation.

Once Sequencers have compiled these blocks, the Provers take over. The role of Provers is crucial as they provide a second layer of validation. They process these blocks to generate cryptographic proofs, specifically utilizing zk-STARK technology—zero-knowledge Scalable Transparent Arguments of Knowledge. This process involves creating detailed execution traces and state differences, essential for documenting the transition of blockchain states and the authenticity of transactions.

The Provers are tasked with ensuring that the blocks proposed by Sequencers are free from errors or fraudulent transactions. They do this by creating a STARK proof for each block, a robust validation tool before any data is finalized on the blockchain. The STARK proof not only confirms the legitimacy of the transactions but also ensures that the compiled blocks are ready for integration into the main blockchain network.

This rigorous process where Sequencers and Provers interact is very important for maintaining the security and efficiency of blockchain transactions. When the data reaches the Ethereum mainnet for final confirmation, it has undergone a thorough verification process, ensuring that only accurate and secure transactions are recorded. This meticulous verification process is crucial for maintaining trust and reliability in blockchain transactions, particularly for applications requiring high security and transparency.

Starknet’s utilization of Sequencers and Provers exemplifies a sophisticated approach to blockchain transaction processing. This setup not only enhances transaction throughput but also significantly reduces the operational load on the main Ethereum network, thus addressing some of the scalability issues inherent in blockchain technologies.

The integration of these components is instrumental for the next phase in blockchain evolution—zk-Rollups. Zk-Rollups leverage the work done by Sequencers and Provers to compress transaction data further, allowing for even greater scalability and reduced transaction costs on the Ethereum network. This innovative approach underscores Starknet’s commitment to enhancing blockchain technology’s scalability and efficiency through advanced cryptographic methods and system design.

Source: https://book.starknet.io

ZK-Rollups

ZK-Rollups, particularly the variety utilized by StarkNet known as Zero-Knowledge Scalable Transparent ARguments of Knowledge (zk-STARKs), play a crucial role in enhancing the scalability and efficiency of blockchain transactions. By processing a high volume of transactions off-chain and then consolidating them into a single transaction for the Ethereum mainnet, StarkNet significantly reduces network congestion and gas fees. This technology allows for many transactions to be grouped and validated collectively, making blockchain applications more accessible and economical for broader use.

StarkNet operates as a permissionless decentralized ZK-Rollup network. It enables developers to execute complex computations off-chain in a secure environment while still maintaining the integrity and security of data when it is reconciled with the Ethereum mainnet. This setup supports a wide range of applications—from decentralized finance (DeFi) protocols and non-fungible token (NFT) marketplaces to gaming and enterprise solutions—by removing the usual scalability constraints of blockchain technology.

The process begins when transactions are collected and ordered by Sequencers. These transactions are then processed and batched into blocks, efficiently validated by Provers using zk-STARK technology. This mechanism ensures the transactions’ integrity without overloading the main Ethereum network. The validated blocks are subsequently converted into a single zk-STARK proof that succinctly represents the correctness of all transactions within the block.

This proof is then published to the Ethereum mainnet, where it is verified and permanently recorded, thereby ensuring that all off-chain computations adhere to the network’s stringent security standards. StarkNet uses its programming language, Cairo, to facilitate this process, making it more accessible for developers and enhancing the platform’s flexibility for various applications.

ZK-Rollups and StarkNet’s implementation of zk-STARKs demonstrate a significant advancement in blockchain technology by enabling faster, cheaper, and more scalable solutions. This is crucial for adopting blockchain technology across various industries, allowing them to leverage the benefits of decentralization without the high costs and slow processing times typically associated with existing blockchain frameworks. As such, StarkNet not only streamlines blockchain transactions but also broadens the potential for its application in real-world scenarios, paving the way for more innovative and efficient decentralized solutions.

Source: medium.com/starkware

Starknet Use Cases

StarkNet facilitates many applications by providing fast, secure, and cost-effective transactions.

• Decentralized Finance (DeFi): StarkNet supports various DeFi applications, including automated market makers, lending protocols, and derivatives platforms, enabling them to operate with lower transaction fees and higher throughput. This capability transforms DeFi into a more accessible and efficient space, allowing for complex financial products on a scalable network.
• Non-Fungible Tokens (NFTs): The platform aids in the minting, trading, and managing NFTs by reducing costs and increasing transaction speeds, making them viable for creators and collectors. StarkNet ensures the authenticity and security of digital assets, enhancing market confidence and fostering growth in the digital art and collectibles sector.
• Gaming and Metaverse Applications: By handling complex computations off-chain, StarkNet allows gaming and virtual world developers to offer enhanced user experiences with real-time, cost-effective in-game transactions and interactions. This integration enables more dynamic and interactive gaming environments, supporting a richer, more immersive player experience.

StarkNet’s broad applicability and robust performance make it an essential tool for developers looking to build scalable and efficient blockchain-based applications, pushing the boundaries of what decentralized technologies can achieve.

What is the STRK Coin?

STRK is Starknet’s native token, facilitating transactions and governance within its ecosystem. Its maximum supply is capped at 10 billion units, of which 728 million (7.28%) are already in circulation (April 2024).

STRK, known as the Starknet token, is an integral part of Starknet’s layer 2 scaling solution on Ethereum. It aims to enhance network operations by incentivizing transaction sequencing and maintaining network integrity with a proof-of-stake mechanism. Initially issued without a sale, STRK serves as a medium for transaction fees and a tool for governance within the Starknet ecosystem.

STRK supports various roles, from paying network fees to staking for transaction sequencing and governance voting. This mechanism ensures a provably fair process in transaction sequencing and block-proof submissions, which is crucial for network resilience and censorship resistance. Users can pay transaction fees in STRK, which are partially converted to ETH by sequencers to cover Ethereum’s Layer 1 costs. This conversion is necessary since Ethereum gas fees must be paid in ETH.

Key aspects of STRK include its role in staking for critical network services and voting on governance proposals, which are crucial for Starknet’s development and operational changes. The supply and distribution of STRK tokens are meticulously planned to align with the long-term goals of the Starknet ecosystem.

The distribution is categorized into several key segments:

• Early Contributors (20.04%): These tokens reward the team members and early contributors of StarkWare, acknowledging their efforts in developing the network. These tokens are gradually released according to a specific lock-up schedule.
• Investors (18.17%): Investors who provided capital during the early stages of Starknet’s development are allocated this supply portion.
• StarkWare (10.76%): This allocation supports ongoing operations, including network maintenance and service provision. It ensures that StarkWare can continue facilitating network operations and engaging with service providers effectively.
• Grants and Development Partners (12.93%): Tokens in this category are intended for grants that fund research and development within the Starknet ecosystem.
• Community Provisions (9.00%): These tokens are distributed to community members who actively contribute to and develop the underlying technology of Starknet.
• Community Rebates (9.00%): Aimed at reducing the costs of transitioning to Starknet from Ethereum, these tokens will be available through future announcements and are designed to ease onboarding for new users.
• Foundation Strategic Reserves (10.00%) and Foundation Treasury (8.10%): These tokens are reserved for the Starknet Foundation to fund ecosystem activities and operations that align with its mission, supporting the overall health and growth of the network.
• Donations (2.00%): This small portion is set aside for donations to non-profits, universities, and other organizations that can help further the reach and impact of Starknet.

Source: docs.starknet.io

This structured distribution strategy is essential not only for maintaining the economic stability of the STRK token but also for fostering a robust, decentralized community around the Starknet ecosystem. By carefully managing the release of tokens and aligning incentives between developers, users, and stakeholders, Starknet aims to create a sustainable and thriving network.

Starknet Main Features

Starknet enhances Ethereum’s scalability and functionality through key features like Cairo, specialized wallets, and bridges. These innovations collectively improve transaction efficiency, user security, and network interaction.

Cairo

Cairo, Starknet’s native programming language, revolutionizes smart contract development by combining safety with efficiency. Inspired by Rust, Cairo’s syntax and design prioritize security and clear, manageable code. Developers benefit from Cairo’s strong typing and memory safety features, which minimize common programming errors and vulnerabilities. Additionally, Cairo features the Sierra intermediate representation, enhancing its robustness in a permissionless setting like Starknet. This ensures reliable protection against denial-of-service attacks and censorship, making Cairo ideal for decentralized applications requiring high trust and security.

Cairo’s accompanying virtual machine, Cairo VM (Cairo Virtual Machine), efficiently executes Cairo-written smart contracts on Starknet, ensuring rapid processing and scalability. It underpins Starknet’s robust and secure decentralized application environment.

Source: starknet.io

Wallets

Starknet supports advanced wallet solutions like Braavos and Argent X, enhancing user interaction with Web3 technologies. Braavos offers an intuitive interface for managing crypto assets and NFTs, simplifying transactions with clear explanations, and supporting diverse platforms. Argent X, favored by most Starknet users, is noted for its security features, including two-factor authentication and multi-sig capabilities. It provides a seamless experience with features like instant swaps and detailed transaction reviews, ensuring users have full control and understanding of their operations on Starknet.

Source: starknet.io

Bridges

Bridges like StarkGate and Rango Exchange crucially connect Starknet with Ethereum and other blockchains, facilitating the fluid movement of ETH and ERC-20 tokens. StarkGate provides direct, secure bridging services, expanding Starknet’s accessibility and utility. Rango enhances liquidity and trading experiences by aggregating diverse liquidity pools and enabling efficient asset swaps across blockchains, which bolsters Starknet’s market integration and user adoption.

These features collectively foster a robust ecosystem on Starknet, making it a versatile and secure platform for developers and users aiming to leverage the benefits of advanced blockchain technology.

Source: starknet.io

Starknet Provisions

The Starknet Provisions Program is a critical step in Starknet’s journey towards decentralization, involving the distribution of over 700 million Starknet Tokens (STRK) to nearly 1.3 million addresses. This initiative is part of a broader strategy to distribute 1.8 billion STRK to the community. It aims to empower users by enabling them to pay transaction fees, stake, and participate in governance, thus influencing the network’s evolution. Starting February 20th, 2024, eligible participants could claim their STRK on the Starknet Mainnet. This wide-scale token distribution underscores Starknet’s commitment to fostering an engaged and active community. Tokens that remain unclaimed after four months will be reallocated in subsequent rounds. For detailed information on eligibility and the claiming process, users should visit the official Provisions portal.

Is STRK a Good Investment?

Starknet utilizes advanced technology, specifically zk-rollups, to enhance Ethereum’s scalability, making it a prominent tool for developers aiming to optimize application performance and reduce costs. Rollups are widely acknowledged for their potential in blockchain technology. However, Starknet faces significant competition as numerous projects adopt similar scaling solutions. The investment potential of the STRK token hinges on Starknet’s ability to distinguish itself within this crowded field. As with any technology in a rapidly evolving sector, potential investors should consider the competitive landscape and the ongoing development and adoption of Starknet’s offerings.

How to Own STRK?

To own STRK, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account, and get it verified and funded. Then, you are ready to go through the steps to buy STRK.

News on Starknet

Released on their official blog on February 22nd, 2024, StarkGate 2.0 introduces significant upgrades on Starknet, enhancing user experience with new features such as one-click withdrawals and permissionless bridging of ERC-20 tokens. The update promises smoother transitions of assets between Ethereum and Starknet, elevating security with withdrawal limits and introducing fast withdrawal options scheduled for Q2 2024. Users are encouraged to explore these advancements and provide feedback to shape StarkGate’s development further. For a deeper understanding, detailed documentation and source codes are available.

Take Action on STRK

Check out STRK price today, and start trading your favorite currency pairs.

• STRK/USDT
• STRK/TRY】