StarkWare Launches Layer 2 Product StarkNet on Ethereum

StarkNet uses zero knowledge rollups to squash Ethereum’s crushing transaction costs.

By Sam Reynolds

Feb 23, 2022 at 2:30 p.m. UTC

Updated Dec 9, 2022 at 9:13 p.m. UTC

CDCROP: The staff of StarkWare. Newly valued at $8B, the company scales blockchain to achieve the bandwidth needed for wider use. (Natalie Schor) — Staff of StarkWare in 2022 (Natalie Schor)

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

Sam Reynolds

Follow @thesamreynolds on Twitter

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

StarkWare's layer 2 product for the Ethereum blockchain – StarkNet – is ready for the deployment of decentralized apps (dapps), the company said.

StarkNet uses zero knowledge (ZK) rollup technology to solve Ethereum’s scaling problem.
Ethereum’s high transaction costs, or gas fees, have encouraged a Cambrian explosion of alternatives. Some are new blockchains such as Solana, while others look for efficiencies in the Ethereum blockchain to make it more competitive.
While layer 1 platforms like Solana have made significant progress in the past year, they are still plagued with growing pains. StarkNet’s use of ZK rollups seeks to marry the security of Ethereum with the need for lower fees.
ZK rollups involve bunching together hundreds of transactions into one, which is then written to the Ethereum blockchain. The process is computationally intensive, but because it involves writing one, not hundreds, of transactions to the blockchain it reduces gas fees by a lot.
The underlying technology used in StarkNet has also been deployed on dYdX, a market for cryptocurrency derivatives that runs on Ethereum without the usual fees associated with it.
In a press release, Tel Aviv, Israel-based StarkWare said that by the end of 2022 StarkNet is expected to achieve one order of magnitude higher transactions per second than Ethereum at a cost that is at least two orders of magnitude lower.
In November, StarkWare closed a Series C funding round that valued the company at $2 billion.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Sam Reynolds

Follow @thesamreynolds on Twitter

Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

Sam Reynolds

Follow @thesamreynolds on Twitter