Ethereum is becoming an important platform for smart contracts and decentralized applications in the blockchain era. However, the challenges of scale and efficiency are still a major focus for developers and the community.

 

To address this, an innovative solution known as Starknet was born. Starknet is a layer-2 scaling platform designed to improve the performance of the Ethereum network.

 

Zero-Knowledge Rollup or ZK Rollup is the core technology that underpins the development of Starknet. The concept allows transaction processing at the off-chain layer without compromising security.

 

Now, to understand more about what Starknet is, from understanding how it works to its advantages, check out the full review below!

 

What is Starknet?

Quoting argent.xyz, Starknet is a type of Ethereum scaling solution known as a ZK rollup. ZK-rollups can scale to millions, even billions of users. And the more people who use them, the cheaper they become.

 

All of that is done without compromising Ethereum’s security and decentralization. That’s why Ethereum co-founder Vitalik Buterin said: “In the medium to long term, ZK rollups will excel in all use cases.”

 

Who is Behind Starknet?

Starknet was developed by StarkWare, the team behind StarkEx and STARKs. StarkEx is another type of scaling solution for Ethereum, but is designed for specialized applications, while Starknet is designed for general purposes.

 

StarkWare has received funding from the Ethereum Foundation and high-end investors like Paradigm, Sequoia, and Vitalik Buterin. To note, Starknet has been active since November 2021.

 

How Starknet Works

Quoting theblock.co, as a Layer 2, Starknet processes transactions on its network and settles them on Ethereum to increase scalability.

 

This is achieved by compressing thousands of transactions into data structures known as “proofs,” which are then submitted to Ethereum as transactions.

 

This significantly increases throughput, or the number of transactions processed per second, and significantly reduces the cost per transaction.

 

StarkNet uses a proprietary proof system called zk-STARK, or zero-knowledge scalable transparent argument of knowledge.

 

The system verifies the correctness of transactions without revealing confidential data, enhancing privacy and security. Starknet has two core components: the sequencer and the prover.

 

The sequencers are responsible for executing transactions and filing blocks. They can process a much larger transaction per second than Ethereum nodes.

 

On the other hand, Provers provide mathematical guarantees to the validity of block transactions, which are finally settled on Ethereum.

 

Getting to Know STRK Token

 

 

Starknet is set to have its native token, STRK, which is expected to be accessible in April 2024. StarkWare launched the STRK token on Ethereum in November 2022.

 

The total supply of STRK tokens is 10,000,000,000, and STRK will be used to cover transaction, governance, and staking fees within the Starknet network, and you can buy Starknet crypto assets (STRK to IDR) on INDODAX Market.

 

Ethereum Scalability and the Role of Starknet

Quoting plisio.net, StarkNet is an extension to Ethereum, serving as a secondary layer that enhances Ethereum’s processing capabilities. As a layer 2 protocol, StarkNet extends Ethereum’s transactional capabilities.

 

While Ethereum’s base layer is typically capable of handling around 30 transactions per second, this can be a bottleneck, especially during periods of transaction congestion.

 

StarkNet uses StarkWare’s advanced STARK technology to increase throughput and reduce transaction fees, potentially overcoming these bottlenecks at scale.

 

Scalability solutions like StarkNet are anticipated to increase Ethereum’s processing capabilities to 100,000 transactions per second, a figure Ethereum co-founder Vitalik Buterin acknowledges could be possible thanks to rollup technology like that adopted by StarkNet.

 

Meanwhile, some of StarkNet’s roles in improving Ethereum’s scalability include:

 

• Capacity building
• Reduced transaction costs
• Improved security
• Support for the blockchain ecosystem

 

The Advantages of Starknet

Starknet implements the Cairo programming language, giving the project some advantages that are emphasized to increase the effectiveness of developing decentralized applications (dApps).

 

However, it should be noted that Cairo is still relatively new to most developers. Some of the advantages of StarkNet as a Layer 2 solution on top of Ethereum are as follows:

 

• Scalability: Starknet prominently enhances Ethereum’s scalability capacity, enabling a high increase in transaction throughput. 
• Low Gas Fees: Transactions on Starknet are generally subject to lower gas fees compared to layer-1 Ethereum transactions. 
• Privacy: Starknet features confidential transactions using zero-knowledge (zk) technology, which enhances user privacy and data security.

 

How to Use Starknet

 

 

Quoting coinvestasi.com, here are the steps related to how to use Starknet that you need to know:

 

1. Programming Decentralized Applications (dApps): Start by understanding and using the Cairo programming language developed by StarkWare. This knowledge is required to develop applications with desired features within the Starknet environment.

 

2. Decentralized Application Development (dApps): After understanding the Cairo programming language, you can develop applications with the desired features. Starknet provides an edge in the effectiveness of dApps development compared to Ethereum Layer 1.

 

3. Utilize StarkNet Tools: Use StarkNet’s resources, such as Voyager and StarkScan. These tools allow you to monitor and analyze network activity and assist in managing and optimizing your applications.

4. Integration with the Ethereum Network: Starknet functions as a decentralized and permissionless ZK-Rollup, improving transaction processing efficiency on the Ethereum network. Integrate Starknet with Ethereum to utilize this solution in your applications.

 

Starknet and Dapps Ecosystem

Quoting starknet.io, the Starknet ecosystem is a platform that facilitates the development and utilization of blockchain-based decentralized applications (dApps).

 

As a Layer 2 solution on top of Ethereum infrastructure, Starknet utilizes ZK-Rollup technology to improve scalability and security.

 

With the adoption of Starknet, developers can effectively develop decentralized applications, making this ecosystem a platform that supports innovation in the blockchain industry.

 

Here are some of the things that can be found in the Starknet ecosystem, including:

 

• Decentralized Applications (DApps): Starknet offers a variety of blockchain-based applications, including NFTs, gaming, DeFi, and DAOs. Users can browse and utilize these applications to optimize the use of blockchain.

 

• Ecosystem: The Starknet Ecosystem is an environment owned by the community and supported by StarkWare. Users can follow and utilize the projects, job opportunities, metrics, and learning resources in this ecosystem.

 

• Total Value Locked (TVL): Starknet recorded a Total Value Locked (TVL) of $1,320,000,000, creating a new era of scale and innovation in the crypto world. Users can use this TVL as an indicator to measure the popularity and performance of their apps.

 

With this approach, you can leverage the Starknet ecosystem for the development and optimization of your application and access the various applications in this ecosystem.

 

Conclusion

In conclusion, Starknet emerges as a solution that provides important benefits and contributions to the blockchain ecosystem.

 

Adopting ZK Rollup as the main technology, Starknet successfully increases network throughput and reduces transaction fees without compromising security and decentralization.

 

The main benefit of Starknet lies in the ability to process thousands of transactions per second. In addition, using ZK Rollup technology provides an additional layer of privacy by verifying the correctness of transactions without revealing confidential information.

 

With the development of sequencers and provers, Starknet provides an infrastructure capable of handling workloads more efficiently than conventional Ethereum nodes.

 

Furthermore, with all its potential, getting involved in the Starknet ecosystem is important. By following along, we can understand how the technology continues to evolve, create new opportunities, and bring a more efficient future to the blockchain ecosystem.

 

You can also read other interesting articles in the INDODAX Academy article collection for additional information.

 

INDODAX Academy presents materials covering various levels, from basic concepts to more in-depth aspects of blockchain technology.

 

Keep improving your knowledge about blockchain and crypto assets only on INDODAX Academy!

 

Invest in Crypto Assets on INDODAX

Now you understand about Starknet and how it works to its advantage.

 

Furthermore, if you are interested in investing in crypto, it is highly recommended to check the crypto market on INDODAX Market first.

 

After checking the price, you can purchase crypto assets on the trusted Indonesia Crypto Exchange, INDODAX.

 

As a reminder, INDODAX is a well-known crypto asset trading platform and a pioneer in buying and selling crypto assets in Indonesia.

 

Being a crypto asset trading platform with proven credibility, INDODAX also continues to provide reliable services for investors.

 

Not only that, INDODAX also facilitates access to the crypto asset market and ensures the security of its users’ transactions.

 

In addition, if you intend to use personalized services to trade large amounts of crypto assets, which may not be accommodated through the order book, then you can visit the OTC trading page on INDODAX.

 

The prices in the OTC service will always follow market price movements because transactions occur in the spot market. Please note that even if the number of purchases increases, it does not guarantee a price reduction.

 

The service is focused on the convenience of transactions for members, with a dedicated team guiding through all procedures, ensuring security, and maintaining user privacy.

 

As a disclaimer, it is important to underline that security and privacy remain the user’s responsibility.

 

OTC trading inherently involves certain risks, and the decision to use these services is entirely up to the user. Therefore, it is very important to do adequate research and understand the risks involved before starting.

 

Start OTC trading on INDODAX right now!

Author: Boy