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StarkNet is a decentralized layer-2 network that enables Ethereum to scale securely and dapps to achieve unlimited scale for transactions and computation. It uses a cryptographic technique called zero-knowledge proofs (ZKPs) to bundle thousands of transactions into a single proof, which can then be verified by the Ethereum mainnet in seconds.
This makes StarkNet one of the most efficient and scalable layer-2 solutions available. It is also compatible with Ethereum, meaning that developers can build on StarkNet without having to learn a new programming language or make significant changes to their existing code.
How StarkNet Works?
StarkNet uses a variety of techniques to achieve scalability, including:
- Rollups: Rollups are a type of layer-2 solution that bundles transactions together and processes them off-chain. This reduces the load on the Ethereum mainnet, and allows for faster and cheaper transactions.
- Zero-knowledge proofs (ZKPs): ZKPs are a cryptographic technique that allows one party to prove to another party that they possess certain information without revealing that information itself. In the case of StarkNet, ZKPs are used to prove that a bundle of transactions is valid without revealing the individual transactions themselves.
- Cairo programming language: Cairo is a new programming language that is specifically designed for writing smart contracts on StarkNet. Cairo is more efficient and expressive than Solidity, the programming language used for Ethereum smart contracts
Read More: What Is Starknet’s $STRK Quantum Leap
What Makes STRK Unique?
Some of the things that make StarkNet (STRK) unique:
- Zero-knowledge proofs (ZKPs): StarkNet is one of the only layer-2 solutions that uses ZKPs to achieve scalability. ZKPs allow StarkNet to bundle thousands of transactions into a single proof, which can then be verified by the Ethereum mainnet in seconds. This makes StarkNet one of the most efficient and scalable layer-2 solutions available.
- EVM compatibility: StarkNet is compatible with the Ethereum Virtual Machine (EVM), which means that developers can build on StarkNet without having to learn a new programming language or make significant changes to their existing code. This makes StarkNet a very attractive option for developers who are already familiar with Ethereum.
- Security: StarkNet inherits the security of the Ethereum mainnet, as it uses ZKPs to verify the validity of transactions. This makes StarkNet one of the most secure layer-2 solutions available.
- Use cases: StarkNet can be used to power a wide variety of decentralized applications (dapps), including decentralized exchanges (DEXs), NFT marketplaces, games, and social media platforms.
Tokenomics & Token Utility
The StarkNet token design is driven by the goal to support a network comprising users, operators (providing computing resources), and developers. The design principles for the token and fee structure emphasize automation, simplicity, transparency, resistance to speculative manipulation, and a good user experience.
Allocation and Minting
Initial Allocation: StarkWare minted 10 billion StarkNet tokens off-chain, which do not represent equity in StarkWare nor grant any rights in the company.
- Distribution: The tokens are allocated as follows:
- 17% to StarkWare Investors
- 32.9% to Core Contributors: Including StarkWare employees, consultants, and software developer partners.
- 50.1% to the Foundation: Earmarked for community provisions, rebates, research grants, strategic reserve, and donations.
- 8.1% Unallocated: To be used for future community support as decided by the community.
While StarkNet (STRK) does not currently have its own token, it is expected to have one in the future. The token will likely be used for a variety of purposes or utility, including:
- Paying for transaction fees: STRK tokens will likely be used to pay for transaction fees on the StarkNet network. This will help to incentivize the use of STK tokens and to generate revenue for the network.
- Participating in governance: STK token holders will likely be able to use their tokens to vote on governance proposals. This will give them a say in the future direction of the StarkNet network.
- Staking: STK token holders may be able to stake their tokens in order to earn rewards. This will help to secure the network and to incentivize the holding of STK tokens.
StarkNet stands at the cusp of a new era in blockchain technology, with its innovative use of ZKPs and rollups. The network's focus on performance, cost-efficiency, and developer-friendly tools positions it as a leading contender in the race to scale Ethereum. As StarkNet continues to evolve, its commitment to decentralization and community-driven growth will likely cement its status as a cornerstone of the next generation of dapps.