Starknet functions as a "validity rollup", also known as zk-rollup, operating within the Ethereum ecosystem.
These rollups handle most transaction operations on Layer 2, i.e. outside the blockchain, and provide Ethereum (Layer 1) with proof of these transactions, relieving the load on the Layer 1 blockchain and resulting in faster, more cost-effective transactions.
What is Starknet ($STRK)
Starknet was developed by StarkWare Industries, an Israel-based blockchain company, to scale Ethereum. Starknet was fully launched in February 2021 as a permissionless Layer 2 network, allowing anyone to build decentralized applications or dapps on it.
StarkWare has also developed another platform called StarkEx, which has been live since June 2020, but is a permissioned network tailored to the specific needs of dapps.
Founded in 2018, StarkWare is backed by high-profile investors including Sequoia Capital, Paradigm and Coatue. The company was valued at $8 billion when it raised $100 million in a Series D funding round in May 2022.
StarkWare has raised a total of $261 million in funding to date.
How does Starknet work?
Functioning as a Layer 2 solution, Starknet processes transactions within its network and finalizes them on Ethereum to improve scalability.
The network achieves this by condensing numerous transactions into a compact data format called "proof", which is subsequently transmitted to Ethereum as a single transaction.
This approach significantly increases processing capacity by indicating the number of transactions processed per second, while substantially reducing transaction costs.
StarkNet uses a unique proof system called zk-STARK, this system validates transactions without revealing confidential information, thus increasing both privacy and security.
The network has two main components: the Sequencer and the Prover.
Sequencers are responsible for executing transactions and proposing blocks. They can process significantly more transactions per second than Ethereum nodes.
Provers offer a mathematical guarantee about the legitimacy of block transactions, which are subsequently confirmed on Ethereum.
Twitter: https://twitter.com/Starknet
Website: https://www.starknet.io/
