More than 70 thousand dApps or decentralized applications are operating under the Ethereum network. The Ethereum network was never originally organized for such a tremendous workload. Ethereum decentralized apps suffered severely from the chain’s scalability problems, causing transaction speeds to drop, whereas gas speeds skyrocketed simultaneously.
Layer 2 scaling solutions have been deployed to overcome these issues and address them with utmost safety. One of the most promising among these solutions is Starkware.
Starkware was founded in 2018 (January) by Uri Kolodny, Eli Ben Sasson, Alessandro Chiesa, and Michael Riabzev. Starkware is a developer comprising layer-2 scaling benefits or services, allowing high throughput and reduced transaction charges on layer-1 blockchains. L1 or Layer-1 is the base protocol – the Ethereum blockchain – whereas L2 or Layer-2 can be attributed to any protocol constructed on top of the Ethereum.
If you buy Ethereum, Starkware adds to it by improving its scalability. Starkware also fetches augmented privacy to ETH using STARK technology, including products such as StarkNet and StarkEx. StarEx is a layer-2 engine constructed with SHARP and Cairo to increasingly scale crypto assets trade or exchanges and NFT platforms through Zero-Knowledge roll-ups. This can be handled by derivative training and spot service training, NFT minting, and payments. Platforms such as dYdX, DiversiFi, Immutable X, and Sorare have already developed StarkEx for their platforms.
Per the research and Starkware’s official website, the overall StarkEx comprises $1.1 billion in TVL, total value locked. The company’s statement claims that it already facilitated trades that add to $426 billion – about 123 million transactions. These transactions were processed and considered as minimal fees.
StarkNet is a trustless layer that is decentralized; it is a layer-2 stark-based with Zero-knowledge roll-up, allowing developers to create as well as run smart contracts through the platforms. dApps can be positioned independently on StarkNet, similar to Ethereum in terms of incredibly low fees, augmented speed, and high throughput. It also proceeds to be interoperable as with the Ethereum prime chain with other 2-layer solutions, promoting liquidity for the broad 2-layer crypto market.
Beyond scalability and behind the technological advancement of Starkware’s products, there is an aim to retain security and guarantee even when quantum computing approaches the mainstream. The problems associated with protecting public-key cryptography are raised after that. The solutions are employed in favor of many crypto assets when confronted with the immense strength of quantum computing. Herein, Starkware utilizes lightweight cryptographic functions that make its products quantum-secure and fast.
The technology behind the two categorical working products of Starkware, that is, StarkNet and StarkEx, must be well-known to learn the working of the developer network. As already mentioned, these two products are based on Zk-Starks and Zk-Rollups.
The former product allows users to share data and publicly prove the computing data’s authenticity, even without exposing the content matter of the data. It is similar to allowing a third party to verify your banking details without disclosing them. The updated version doesn’t require support from a third party, unlike its former version, which involved a third party ultimately marrying the privacy system. ZK-Starks removes the need to bring in a third party as proof to the system.
One of its extended benefits is the blockchain system, which includes enhancing scalability by accepting smart contracts computation and off-chain storage for the Stark system to generate evidence with leaner cryptographic functions. This evidence is then forwarded on-chain to the blockchain service for verification, increasing the transaction speed and, in turn, reducing the costs for people.
On the other hand, ZK-Rollups are layer-2 scaling explanations used by StarkEx to increase the Ethereum network’s speed and throughput speed. This product bundles up plenty of transactions off-chain, verging into a single transaction while generating a SNARK proof to activate the prime chain for validation and verification. However, this reduces the total number of transactions functional on the Ethereum main chain to reduce the gas fees.
Starkware is a developer program or network already being used by various platforms. Numerous trustworthy decentralized apps have come down to Starkware’s usage and scaling solutions to offer their users better products and more safety.