What is Starknet? An Introduction to the Ethereum Layer 2 Solution

What is the use of Starknet?

Starknet is a blockchain that operates on top of Ethereum, designed to help Ethereum process more transactions at a lower cost. This makes it a Layer 2 solution, as it adds a second layer to Ethereum.

However, Starknet is different from other Layer 2 blockchains like Base, Arbitrum, and Optimism. It uses STARK proofs, which make it much faster and cheaper than other Layer 2 solutions. Starknet can now validate a transaction in under three seconds for as little as $0.001, and it can handle hundreds of transactions per second.

One of Starknet’s standout features is native account abstraction, which significantly improves the user experience. With Starknet, you can perform complex DeFi transactions with just one click. You can also enjoy the convenience of not needing a seed phrase while still maintaining full self-custody of your funds and complete decentralization. In essence, it offers a Web2 experience with Web3 values.

Additionally, Starknet is written in Cairo, a programming language that is not compatible with Ethereum’s language, Solidity. This makes Starknet more flexible and faster than Ethereum, but there’s a trade-off. You’ll need a dedicated Starknet account to connect to the network. So, if you’re used to connecting to Ethereum, Base, or Arbitrum with the same address, you’ll need a new one specifically for Starknet. You can easily deploy an account on Starknet using Braavos.

What are STARKs on Starknet?

STARKs, or Scalable Transparent Argument of Knowledge, are a type of cryptographic proof used in Starknet to achieve scalability and security on the blockchain.

Here’s a simplified breakdown:

Scalability: STARKs allow Starknet to process a large number of transactions off-chain while only needing to provide a succinct proof that everything was done correctly. This proof is then verified on-chain, which significantly reduces the amount of data that needs to be stored on the Ethereum blockchain, making it more scalable.

Transparency: Unlike some other cryptographic proofs, STARKs don’t require a trusted setup. This means that they can be generated and verified without any initial secret or reliance on third parties, making them more decentralized, secure and transparent.

Security: STARKs ensure that the proofs are mathematically sound, meaning that even if someone tries to cheat, the proof will reveal the dishonesty. This helps maintain the integrity of the transactions processed on Starknet.

In the context of Starknet, STARKs are used to efficiently validate large batches of transactions. Instead of verifying every single transaction on the blockchain (which is slow and costly), Starknet uses STARK proofs to confirm that all the transactions in a batch are correct. This allows the network to scale up and handle more transactions while still being secure.

Who owns Starknet?

Starknet is a decentralized platform, meaning it doesn’t have a single owner. With the distribution of STRK governance tokens, STRK holders can now vote on upgrades to the Starknet protocol. However, StarkWare Industries, an Israeli company founded in 2018 by Eli Ben-Sasson, Uri Kolodny, Michael Riabzev, and Alessandro Chiesa, primarily develops and maintains the platform.

Does Starknet have a coin?

Yes, Starknet has its own native cryptocurrency called STRK. The STRK token is used within the Starknet ecosystem for various purposes, including:

Transaction Fees: Users pay transaction fees on Starknet using ETH or STRK. These fees are used to compensate the validators and ensure the network’s operations run smoothly.

Staking and Security: In the future, STRK tokens are expected to be used for staking to help secure the network. Validators or nodes will stake STRK tokens to participate in the network’s consensus and earn rewards.

Governance: STRK plays a role in the governance of the Starknet network. Holders of the token are able to participate in decision-making processes regarding protocol upgrades, changes to the network, and other governance matters.

Here is an example of Starknet governance:

Is Starknet a good investment?

Starknet’s native token, STRK, has a market cap in the hundreds of millions and a daily trading volume in the tens of millions of dollars. Whether STRK is a good investment depends on your market outlook, preferences, and risk tolerance. It’s wise to consult with a financial advisor who understands cryptocurrency before making any investment decisions.

How to buy Starknet coin?

You can buy Starknet coin directly from your Braavos wallet. If you don’t have a Braavos wallet yet, you can download it here.

Once you’ve downloaded Braavos, here is how to buy Starknet coin in 3 steps:

Step 1: Open your Braavos wallet and tap “Deposit”

Step 2: Deposit ETH into your Braavos account using several convenient options. With Braavos, you can convert fiat currency to ETH, bridge ETH from another blockchain, or transfer it from a centralized exchange.

Step 3: In the Swap menu of your Braavos wallet, select From ETH To STRK and tap “Swap”!