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As more and more people become interested in blockchain, many networks are realizing it can be hard to handle transactions securely and quickly. Starknet hopes to address this issue with a new scaling solution that improves transaction speed and lowers gas fees. How does Starknet work, and what makes it different from other scaling software? Explore this guide for all the details about the Starknet ecosystem.
Key Takeaways:
Starknet is a Layer 2 Ethereum scaling solution that uses zero-knowledge rollups and STARK cryptographic proofs to create a faster and more reliable way of processing large batches of transactions.
It will be distributing more than 700 million STRK to nearly 1.3 million addresses in its first round of airdrops, starting from Feb 20, 2024.
Looking to trade Starknet tokens? Bybit will soon offer the STRK/USDT Spot trading pair.
Starknet is a Layer 2 Ethereum scaling solution. It uses zero-knowledge rollups and STARK cryptographic proofs to create a faster and more reliable way of processing large batches of transactions.
Cairo is the programming language used to design and operate Starknet. It's the first Turing-complete language focused on designing provable programs for general computation.
Starknet began when Eli Ben-Sasson and Uri Kolodny joined forces to tackle the problem of Ethereum’s limited scalability. Along with input from several other blockchain and mathematics experts, they created STARK, a cryptographic proof with a lot of scaling potential. Initially, STARK was only available as paid software that business clients could use. However, the team eventually decided to create a permissionless version that was more accessible.
In 2021, they launched Starknet as the developer-friendly version of their software. Anyone can try it and explore the STARK technology. Starknet is currently run by aboard of seven directors. Its team includes math and science professors, along with people who have worked at other crypto companies, such as Zcash and Nethermind.
Starknet endeavors to solve the blockchain trilemma. This common phrase refers to a popular problem that blockchains face: all blockchain networks desire security, scalability and decentralization, but it's difficult to excel at more than two of these features.
So far, the Ethereum network has been able to create a system that’s sufficiently secure and decentralized. However, it can be pricey to use Ethereum when a lot of people are processing transactions on the network. By offering a third-party scaling solution, Starknet hopes to help people build on Ethereum while still enjoying fairly fast transaction times and low gas fees.
Starknet operates as a Layer 2 blockchain on Ethereum. It increases Ethereum's scalability with zero-knowledge rollup technology. Zero-knowledge proofs allow Starknet to transmit the proof of a transaction’s validity to Ethereum without having to include all of the excess metadata and proving steps. Furthermore, all of these proofs are bundled into a "rollup" that’s sent to Ethereum as a single, efficient block.
Starknet uses the following additional features to help its system run smoothly.
To provide clients with a secure and reliable system, Starknet uses STARK cryptographic proofs to verify transactions. This system relies on a mathematical function known as polylogarithmic verification, so it’s both secure and compact, enabling Starknet to process vital transactions quickly without sacrificing any security.
The Starknet sequencer helps to organize all transactions before they're processed. It starts by accepting a transaction from the mempool and performing a preliminary validation. Next, it executes the transaction to ensure it's valid on Ethereum. Once items run through the sequencer, they’re fully accepted on Starknet's Layer 2 chain.
The Starknet Prover uses STARK technology to turn sequencer proofs into fully valid blocks. All transaction proofs are bundled together into a single rollup, and then the Prover transfers the verification to the Layer 1 chain.
In addition to helping people process vital transactions on the Ethereum blockchain ecosystem, Starknet also offers many other helpful features to its community members.
Starknet provides support and promotional opportunities for developers who design systems that run on its service. Its DApps include focus on NFTs, gaming, decentralized autonomous organizations (DAOs) and other decentralized finance (DeFi) products. Interacting with these products can make it easier to get into the Early Community Member Program and earn additional rewards.
To help you interact with the blockchain ecosystem, Starknet includes several compatible wallet options. Clients can choose from multiple wallets with built-in Starknet capabilities and use them to automatically pay transaction fees or move assets to and from the Starknet system.
StarkGate is a crypto bridge that lets you transfer ETH and ERC-20 tokens to and from Starknet. Tokens can move from the Starknet chain to Ethereum, and vice versa. This makes it easier to develop projects on Starknet and to access Ethereum features.
Though Starknet is mainly an Ethereum-compatible system, future contributions may include compatibility with other chains. The various bridges available on Starknet are the first step to increasing cross-chain communication. Through a variety of bridges and cross-chain exchanges, people can move tokens from other chains to or from the Starknet system.
Explore Starknet transactions through its enhanced APIs. These features make it easy to check out metrics and see how the Starknet core infrastructure works. They're mostly designed for developers, but can also provide helpful analytic data for investors.
If you're interested in helping the Starknet Foundation, you can sign up to run a node. This provides a valuable service to the blockchain ecosystem, in addition to giving you some helpful financial perks.
The Starknet Foundation will soon unveil the Starknet Provisions Program, a key initiative for distributing the Starknet Token (STRK) to its community members, who are at the forefront of developing and engaging with DApps that promise to revolutionize the digital landscape. STRK is central to the Starknet ecosystem, facilitating network fee payments, enabling user participation in staking and allowing governance decisions.
Starknet is set to distribute a substantial 1.8 billion STRK tokens through a combination of airdrops, rebates and incentives, aimed at both current and future DeFi participants. Via its official Provisions portal, Starknet sets a precedent as the first Layer 2 network to bear the gas costs for users claiming tokens, demonstrating its commitment to community engagement.
The Starknet Provisions Program embodies Starknet’s commitment to decentralization, transparency and inclusivity. By leveraging STARK cryptography, Starknet significantly enhances Ethereum's scalability and security. It offers the Cairo programming language for ease of DApp development and introduces account abstraction to simplify transactions, thus contributing to a rapidly expanding ecosystem of user-friendly DApps.
This initiative rewards those who have actively supported Starknet’s vision and principles, including contributors to Ethereum’s security, and the broader open-source software community. Their efforts are instrumental in advancing a more open, inclusive web, aligning with Starknet’s mission to democratize access to blockchain technology.
Announced by the Starknet Foundation, the Starknet Provisions Program signifies a strategic move to reward the network's community members and stakeholders for their ongoing contributions and engagement.
Out of the 1.8 billion STRK tokens being airdropped, the Foundation has earmarked 900 million of them to acknowledge the contributions of its users and community members through its Starknet Provisions Program.
In this first round, more than 700 million tokens will be distributed to close to 1.3 million addresses, making it one of the broadest distributions in a program of this kind. These tokens will be available for claiming on the Starknet Mainnet starting from Feb 20, 2024, 12PM UTC.
Eligible participants will have a four-month post-launch window (until Jun 20, 2024) to claim their tokens. After this period, unclaimed tokens will be returned to the pool for redistribution in subsequent phases or initiatives.
The Starknet Provisions Program aims to incentivize and recognize the diverse contributions that have supported Starknet's growth and development.
Starknet Users: Early adopters who have actively engaged with and provided feedback on Starknet applications are eligible for the airdrop, as their participation has been crucial in refining the network. Eligibility criteria include conducting more than five transactions before Nov 15, 2023, active engagement for three months or longer, transactions totaling $100 or more, and holding at least 0.005 ETH by Nov 15, 2023.
Starknet Community Members: This includes early contributors, such as code contributors, event organizers and community managers, who have played a significant role in Starknet's growth. Eligibility extends to those recognized under the Starknet Early Community Member Program (ECMP).
Starknet Developers: Those who have significantly contributed to Starknet's GitHub repositories are eligible. This acknowledges their role in the network's development, aligning with the Devonomics program. Eligible developers are those who’ve contributed at least three commits to the Starknet ecosystem’s repositories before Nov 15, 2023.
StarkEx Users: Individuals who have used StarkEx–powered applications are recognized for their early engagement with STARK technology in contributing to the network's robustness. Eligibility requires at least eight transactions before Jun 1, 2022.
Ethereum Contributors: This recognizes those who have supported Ethereum's development, thereby indirectly contributing to Starknet's security and functionality. These include Ethereum Protocol Guild members, developers with significant commits to Ethereum repositories, EIP authors and ETH stakers, acknowledging their various contributions to Ethereum's evolution and security.
Open-Source Developers: This acknowledges developers of non-blockchain, open source projects that have laid the groundwork for blockchain technologies. Eligibility is for those with contributions to the top 5,000 GitHub projects (by stars) before Nov 15, 2023.
To check if you're eligible for the Starknet Provisions Program and to claim your STRK, visit the official Starknet Provisions Program portal. Note: It's crucial to use this specific link and remain vigilant against fraudulent schemes.
Starting on Feb 20, 2024, 12PM UTC, you'll be able to claim STRK on the Starknet Mainnet via the Starknet Provisions Program. Note that you'll require a Starknet wallet to claim your STRK through the portal. Ensure your Starknet wallet is updated to the latest version, and your account details are current.
Please also note that the Starknet Foundation will absorb all fees associated with claiming STRK through the official Provisions portal once the program launches on Feb 20, 2024.
Another 900 million tokens are allocated for rebates to offset transaction fees for users, with additional planning still in progress. Furthermore, Starknet plans to incentivize DeFi activities on its platform by allocating an additional 50 million STRK tokens, which will be distributed both directly and indirectly, including retroactive rewards for DeFi users on Starknet. The announcement has been met with enthusiasm from the Starknet community, who view it as a significant boost for the blockchain's ecosystem.
This move comes at a time when airdrops are increasingly being utilized by crypto and DeFi projects as a mechanism to expand their user bases and foster community loyalty. Starknet's growth is evidenced by its tenfold increase in total value locked (TVL) in May 2023, reaching over $10 million, and quintupling again to its current $54.54 million, showcasing the network's expanding influence and adoption within the DeFi space.
After completing its main goal of creating a zero-knowledge rollup system based on STARK, Starknet plans to improve its user experience. According to its road map, Starknet is currently focusing on improving network stability. Next, it hopes to implement EIP-4844 protocols that will lower transaction fees. Future contributions suggested by the governing body also include plans to adjust fees further and address network congestion with a fee market.
Starknet's native crypto token, STRK, is used to pay transaction fees, allow community members to vote in the Starknet governing body, and assist with running the Early Community Member Program. STRK is an ERC-20 coin based on the Ethereum network, with a current total supply of 10 billion tokens. The Starknet Foundation's Provisions Committee plans to distribute STRK in the following manner:
Core Contributors: 32.9%
StarkWare Investors: 17%
Grants: 12%
Starknet Foundation: 10%
Community Rebates: 9%
Community Provisions: 9%
Unallocated: 8.1%
Donations: 2%
Looking to trade Starknet tokens? Bybit will soon offer the STRK/USDT Spot trading pair! To get started with trading, you’ll first need to create a Bybit account, fund it with cryptocurrency and navigate to the STRK/USDT Spot trading page once it’s available.
STRK is a fairly promising new token to check out. It's backed by STARK technology and the Stark Foundation, which has already proven itself to be reliable. Since there’s a lot of excitement around the idea of letting individual developers access STARK technology for their projects, the Starknet ecosystem has done well so far. As long as Starknet continues to flourish, its token is likely to as well. It's been one of the most eagerly awaited crypto releases of early 2024, so you can expect to see quite a bit of hype surrounding this token.
However, don't forget that new cryptocurrencies are always volatile. There's some inherent uncertainty in these investments, so remain cautious and never invest more than you can afford to lose. Additionally, keep in mind that industry news may greatly affect STRK prices. You'll need to do your research and carefully monitor token prices to get the best outcome.
Starknet's ability to provide an affordable and convenient way of scaling the Ethereum network has many exciting applications. This software makes it much easier to develop blockchain projects without getting bogged down by network delays and pricey fees. The software's popularity may translate into a higher value for the STRK token.
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