Starknet, a Layer 2 solution for Ethereum, aims to address the scalability challenges faced by the network. As Ethereum adoption grows, so does the strain on its Layer 1 blockchain. Slow transaction speeds and rising costs have become pressing issues. Enter Starknet, a tool designed to enhance the speed, affordability, and scalability of Ethereum transactions.
What Is Starknet?
- Starknet is a validity rollup, commonly known as a zk-rollup, that functions on the Ethereum network.
- Rollups process most transaction operations off-chain and then provide cryptographic proofs to Ethereum, reducing the load on the Layer 1 blockchain.
- Developed by StarkWare Industries, an Israel-based blockchain firm, the network fully launched in February 2022 as a permissionless Layer 2 network.
- It allows developers to build decentralized applications (dApps) that benefit from faster and cheaper transactions.
How Does Starknet Work?
- Transaction Processing: As a Layer 2 solution, Starknet processes transactions within its network.
- Compressed Proofs: It compresses thousands of transactions into a data structure called a proof, which is then submitted to Ethereum as a single transaction.
- Scalability Boost: By offloading most computation off-chain, Starknet significantly improves throughput (transactions processed per second) and reduces transaction costs.
- zk-STARKs: Starknet employs a proprietary proof system called zk-STARK (zero-knowledge scalable transparent argument of knowledge).
- It verifies transaction correctness without revealing confidential data, enhancing privacy and security.
Core Components:
- Sequencer:
- Executes transactions and proposes blocks.
- Processes far more transactions per second than Ethereum nodes.
- Prover:
- Provides mathematical guarantees of block transaction validity.
- These valid blocks are then settled on Ethereum.
StarkWare’s Impact and Backing:
- StarkWare Industries, founded in 2018, has garnered significant attention.
- Backed by high-profile investors like Sequoia Capital, Paradigm, and Coatue, the company raised $100 million in a Series D funding round in May 2022, valuing it at $8 billion.
- Total funding to date stands at $261 million.
Why Starknet Matters:
- Unlimited Scalability: The platform offers a path to unlimited scalability for Ethereum dApps.
- Native Account Abstraction: All accounts on the network are smart accounts, allowing customization beyond protocol constraints.
- Privacy and Security: zk-STARKs ensure transaction correctness without compromising privacy.
- Thriving Ecosystem: Developers and users are actively contributing to Starknet’s growth.
In summary, Starknet represents a promising step toward a more efficient and scalable Ethereum, empowering developers and users alike to build innovative decentralized applications.