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As Ethereum's popularity and adoption surged, it brought to the forefront the challenge of scalability. As more users and applications flocked to the Ethereum network, the transaction fees and confirmation times skyrocketed, making it less feasible for decentralized applications (dApps) and projects with high transaction requirements. The congestion on the Ethereum mainnet called for innovative solutions to scale the network and provide a seamless user experience.
Starknet's Quantum Leap Upgrade marks a momentous development in the evolution of Ethereum's Layer-2 solutions. Deployed on the Ethereum mainnet, this highly anticipated upgrade aims to address the challenges of transaction throughput and latency that have hindered Starknet's scalability potential. The upgrade targets a 10x increase in throughput, making it capable of handling higher transaction volumes. The initial results have shown promising improvements in transaction acceptance times, reducing latency significantly. Starknet continues to evolve as developers explore its capabilities, unlocking its full potential and paving the way for more scalable decentralized applications on the Ethereum blockchain.
Developed by Starkware, Starknet is a Layer-a is a Layer-2 solution designed to tackle Ethereum's scalability issues. It operates as a "rollup," a technology that processes transactions off-chain and then finalizes them on the Ethereum mainnet, thus significantly reducing the load on the base layer. By doing so, Starknet aims to achieve higher throughput and lower transaction fees, making decentralized applications more accessible and efficient.
The Quantum Leap Upgrade marks a significant development in the evolution of Ethereum's Layer-2 solutions. One of the primary goals of the upgrade is to increase the TPS processed by the Starknet network. After its deployment on the Ethereum mainnet, the initial results have been promising. Transaction acceptance times have seen a significant reduction, with the average latency dropping from 429 seconds to < 10 seconds. This improvement in latency duration is due to the upgrade's effectiveness in transaction efficiency.
However, the upgrade did not immediately achieve the desired transaction throughput. After an initial spike, TPS has remained relatively low with an average of 3 from the past few days. Despite this, supporters of Starknet remain optimistic about the upgrade's potential, viewing the current results as opportunities for developers to test the network and explore its capabilities. The team believes that as the network evolves and more developers build on Starknet, the TPS will continue to improve and meet the anticipated targets.
The key advantage of scaling solutions is the potential to attract more DeFi and gaming projects. With higher throughput, Starknet hopes to increase its Total Value Locked (TVL) as more assets flow into the network. As of the latest data, Starknet's TVL is at $25.28 million. To improve their TVL, the team is focusing on reducing transaction fees to make Starknet more affordable for both developers and users. The upcoming v0.13.0 upgrade will target Ethereum data cost, accounting for a significant portion of transaction costs.
StarkNet's tokenomics is built on the issuance of ten billion STRK Tokens by StarkWare. It's important to clarify that these tokens do not represent equity in StarkWare, nor do they provide any participation right or claim from StarkWare. The circulating supply of tokens is subject to an increase over time through the protocol's minting of new tokens, a schedule that will be determined by the community later on. The allocation of tokens is distributed among various stakeholders: 17% for StarkWare Investors, 32.9% for Core Contributors, and 50.1% granted to the Foundation for specific purposes. This includes Community Provisions (9%) for past contributors based on verifiable work, Community Rebates (9%) to cover costs of transitioning to StarkNet, Grants (12%) for research and development, a strategic reserve (10%) for ecosystem activities, Donations (2%) to reputable institutions, and an Unallocated portion (8.1%) for community support. To align long-term interests, Core Contributors and Investors are subject to a 4-year lock-up period, with linear release and a one-year cliff. StarkNet's tokenomics aims to foster community engagement and growth while promoting sustainable development in a decentralized ecosystem.
In conclusion, the Quantum Leap Upgrade is just the beginning of Starknet's journey to unlock Ethereum's full scalability potential. The project's roadmap includes a series of planned upgrades to further enhance throughput, reduce transaction fees, and shorten block intervals. Starknet's Quantum Leap Upgrade represents a significant step forward in addressing Ethereum's scalability challenges. The upgrade has created an optimistic outlook for Starknet's future, as developers and users explore the possibilities of this scalable and efficient Layer-2 solution. As the blockchain industry continues to grow, protocols like Starknet are set to play a critical role in Ethereum's scalability revolution.
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