📝 Hello everyone, I am 𝟏𝟎, welcome back to the #BlockchainDevelopmentHistory project research series. Today, we will focus on (StarkNet / STRK).
StarkNet is a decentralized Layer 2 scaling network for Ethereum, utilizing zero-knowledge proof (ZK-Rollup) technology developed by StarkWare.
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I. Introduction to the StarkNet (STRK) project
1 / What is StarkNet (STRK)?
StarkNet is a Layer 2 scaling solution for Ethereum that utilizes zero-knowledge proof technology (zk-STARKs) to achieve fast, secure, and low-cost transaction processing. It batches a large number of transactions into one and submits it to the Ethereum mainnet through mathematical proofs, ensuring that decentralization and security remain unaffected.
Developers can utilize StarkNet to deploy smart contracts and build decentralized applications (dApps) using the Cairo programming language, suitable for areas such as DeFi, NFT, and GameFi. It combines Ethereum's security and decentralization while providing higher throughput and flexibility, making it easier to build high-performance dApps.
STRK is the native token of StarkNet, used for paying network fees and governing the ecosystem, supporting the development of StarkNet.
2 / Team background and financing
StarkWare was founded in 2018 and is headquartered in Israel. Its investors include notable institutions such as Sequoia Capital, Paradigm, and Coatue. Key team members include Eli Ben-Sasson, the founding scientist of Zcash and inventor of zkSNARKs, and Henri Lieutaud, head of developer relations at the Starknet Foundation.
So far, five rounds of financing have been completed, raising a total of $261 million, with the latest round occurring in May 2022, amounting to $100 million, with a valuation of $8 billion.
II. How StarkNet (STRK) works
StarkNet is a network based on zero-knowledge proof technology (zk-STARK) composed of five core components, ensuring more efficient transaction processing at lower costs.
Each component has its own responsibilities: Prover generates mathematical proofs to ensure transaction correctness. Sequencer is responsible for receiving, ordering, and validating transactions, then packaging the results to send to the core state contract. Full Node stores and tracks all transaction records, maintaining the system's global state. Verifier deployed on Ethereum validates the transactions' validity. StarkNet Core manages state changes and transaction validation on Ethereum.
It reduces transaction costs by compressing multiple transactions into a single 'proof' data structure while increasing the number of transactions processed per second. It uses zk-STARK technology for leak-free data verification, enhancing privacy and security. The collaboration between sequencers and provers makes transaction processing more efficient while relying on Ethereum for final confirmation.
III. Core advantages of StarkNet (STRK)
1 / High focus on decentralization
StarkNet's greatest highlight is its decentralization, meaning that no single entity can dominate, and everyone can participate. Its technology based on STARK-proofs allows anyone with a regular computer to verify the blockchain, giving everyone the opportunity to act as a judge. Permissionless sequencers and provers act like 'traffic police', ensuring fair transactions, with no one able to block or cheat. The foundation's support allocates a significant portion of the initial tokens specifically to promote decentralized development, attracting developers who genuinely love fair and open technology.
2 / High-performance scaling
StarkEx focuses on providing scalable infrastructure for complex projects, with performance sufficient to meet high concurrency needs. Whether it's ultra-fast transactions, batch transfers, or even large-scale NFT minting, it's all possible. Who is using it? dYdX (trading platform), ImmutableX (NFT-specific scaling), and Sorare (NFT game) all rely on it.
3 / The best partner for capacity expansion and upgrades
StarkNet's upgrade objectives align perfectly with Ethereum's, enhancing speed and security to enable handling 100,000 transactions per second. Investors are very confident in this future technology, with well-known institutions like Greenoaks and Tiger Global making significant investments in StarkNet, reflecting the market's confidence and expectations for its future.
4 / Cairo programming language
Cairo is the official language of StarkNet, designed for high performance and complex functionalities. Although the learning curve is steeper than Ethereum's Solidity, the community has developed various tools that significantly reduce the cost of migrating Solidity contracts to Cairo, providing developers with a more convenient ecosystem.
IV. StarkNet (STRK) ecosystem
According to CoinGecko data, StarkNet (STRK) currently has a market capitalization of $1.774 billion, ranking 91st on CoinGecko, with a fully diluted valuation (FDV) of $7.854 billion. Its all-time high price was $4.41, reached on February 20, 2024.
Its ecosystem has expanded to 162 products and services, covering multiple areas such as dApps, blockchain, wallets, and more, showcasing innovations from developers and contributors worldwide. Approximately 200 user-centered projects are currently underway, with more to be launched soon, especially as Starknet is set to be EVM compatible.
V. Conclusion
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