Starknet, developed by StarkWare, is an advanced Layer 2 (L2) scaling solution designed to enhance the Ethereum network by offering faster and cheaper transactions. Often referred to as a "Validity-Rollup" rather than a "Zero-Knowledge" (ZK) rollup, Starknet prioritizes ensuring the validity of transactions rather than privacy.
A summary of what makes starknet distinct :
1. Specialized Virtual Machine: Cairo VM
#Starknet employs the Cairo VM, a unique virtual machine distinct from Ethereum's EVM. Cairo’s syntax, inspired by Rust, is designed to be developer-friendly and facilitates the writing of provable programs. This specialized VM showcases the flexible design space available to Layer 2 solutions, highlighting the potential for innovation beyond traditional Ethereum development environments.
2. Advanced Cryptographic Proofs: STARKs
Starknet uses Scalable Transparent ARguments of Knowledge (STARKs) to provide excellent security and cheap transaction costs. STARKs are advanced cryptographic proofs that ensure the network's integrity and efficiency. These proofs not only improve security, but also considerably reduce computational overhead, making transactions more cost-effective and scalable.
3. Account Abstraction (AA)
Starknet's account abstraction feature improves user experiences by enabling multi-factor authentication, social recovery, and gasless transactions. This improves the user experience for decentralized applications (dApps), making them more accessible to mainstream users. Account abstraction simplifies interactions with blockchain technology, decreasing friction for both end users and developers.
Operational Mechanism
Transaction Lifecycle
Sequencer: Transactions initiated on Starknet are first received by the sequencer, responsible for collecting and ordering them off-chain. The sequencer acts as the initial gatekeeper, ensuring that transactions are properly queued and processed.
Batch Processing: The sequencer processes these transactions in batches, executing them together and aggregating the results into a single proof. Batch processing optimizes resource usage and enhances the throughput of the network.
Prover: The prover, using the Cairo programming language, generates STARK proofs, which are then verified on the Ethereum mainnet. Once verified, the network's state is updated on Ethereum, ensuring transaction security and integrity. This process ensures that all off-chain activities are accurately reflected on the mainnet, maintaining trust and transparency.
Cost-Effectiveness
As the number of users and transactions increases, the batches become larger and more frequent, optimizing cost distribution and making Starknet increasingly cost-effective. This efficiency makes Starknet a practical solution for large-scale applications and high-transaction environments, providing significant savings over traditional Ethereum transactions.
The Future: Staking and Advanced Provers
Staking on Starknet
Starknet plans to launch staking for its STRK token by the end of 2024. Users can become stakers by locking their STRK tokens for at least three weeks, earning rewards proportional to the amount staked. This staking mechanism will be introduced in phases, eventually involving stakers in real-time attestations and network security processes.
Stwo Prover: The Next Generation
StarkWare is developing Stwo, a new prover implementing the Circle STARK protocol. Stwo will leverage the Mersenne prime field M31 for unprecedented proving performance and will be open-sourced under Apache 2.0.
Circle STARK Protocol
Developed with Polygon Labs, the Circle STARK protocol allows efficient computation without the constraints of the classical STARK protocol, enabling faster and more efficient STARK proofs. This innovation represents a significant leap forward in cryptographic research and practical application.
Benefits of Stwo
Stwo will enhance scaling, reduce latency and fees, and be fully compatible with high-level Cairo code. It will improve the performance of Starknet without requiring developers to modify existing applications. This seamless integration ensures that the benefits of Stwo can be realized without disrupting the existing development workflows.
Bitcoin Integration: Expanding Horizons
StarkWare has achieved a milestone by verifying the first ZK proof on the #Bitcoin Signet network. The "OP_CAT" proposal introduces smart contract functionality to Bitcoin, marking a pivotal step towards integrating private L2s into the Bitcoin ecosystem.
Benefits of Scaling Bitcoin
Enhanced Scalability: By scaling Bitcoin, Starknet aims to process millions of transactions per second, compared to Bitcoin’s current capacity of around thirteen transactions per second. This scalability is crucial for Bitcoin to support a broader range of applications and higher transaction volumes.
Financial Inclusion: Improved scalability can offer financial services to the 1.5 billion people globally who lack access to traditional banking. This aligns with Bitcoin's original vision of providing financial services to the unbanked and underbanked populations.
Privacy: Enhanced transaction privacy using STARKs can significantly improve the privacy of Bitcoin transactions, which is a key concern for many users.
Financial Innovation: Scaling Bitcoin with Starknet can support advanced financial instruments on Bitcoin, including programmable vaults, risk management tools, and derivatives. This innovation can drive new use cases and applications for Bitcoin, enhancing its utility and adoption.
Grants and Community Support
Seed Grant Program
The Seed Grant Program provides up to $25,000 in USDC for projects with a minimum viable product (MVP) or proof of concept, fostering early-stage innovation. This funding is crucial for new projects looking to make a significant impact on the Starknet ecosystem.
Application Process
The application process for the Seed Grant Program is simplified, with decisions typically made within two weeks after submission. This quick turnaround time helps projects get the support they need without unnecessary delays.
Community Initiatives
Programs like the Provisions Program and the Ambassadors Program engage and support developers, enthusiasts, and other stakeholders, building a strong community around Starknet. These initiatives foster collaboration and innovation, driving the growth and success of the Starknet ecosystem.
Eli Ben-Sasson: Visionary Leader
Eli Ben-Sasson, co-founder and CEO of StarkWare, has a rich history in academia and blockchain technology development. He received his PhD in theoretical computer science from the Hebrew University and has held research positions at Harvard, MIT, and the Institute for Advanced Study at Princeton. As a professor at Technion – Israel Institute of Technology, Eli specialized in computational complexity and zero-knowledge proofs, areas critical to blockchain technology.
Eli’s work has been foundational in developing scalable and secure cryptographic protocols. He is a co-inventor of the STARK, FRI, and Zerocash protocols and a founding scientist of the Zcash Company. His leadership at StarkWare has driven the development of groundbreaking technologies that address the most challenging issues in blockchain, such as privacy and scalability. Under his guidance, StarkWare continues to pioneer innovations that enhance the efficiency and security of blockchain systems.
Conclusion: The Path Ahead
As a top Layer 2 solution for Ethereum, Starknet offers developers freedom, security, and scalability. Further performance improvements and charge reductions are promised by Starknet with the introduction of the Stwo prover and ongoing upgrades. With its ongoing development, Starknet has the potential to completely transform the digital financial and decentralized application industries, providing never-before-seen possibilities for both consumers and developers.