Currently, the Total Value Locked (TVL) in the StarkNet ecosystem is approximately $12 million. Compared to the TVL level just three months ago, this represents a tremendous growth of tenfold. Let's delve into why this ecosystem is currently so influential.
Table of Contents:
What is StarkNet?
Vitalik Buterin expressed the opinion that, despite the shorter development period of Optimistic Rollups, the underlying principles of Zero-knowledge Rollups technology will help them become "second-tier leaders" in the future with high speed.
In recent years, there has been rapid growth in various Layer 2 scaling solutions on the Ethereum network. One of the most highly valued among the blockchain community is Layer 2 utilizing ZK technology. This approach provides significant advantages compared to alternative scaling methods in various aspects, including transaction costs, confirmation speed, and security assumptions. Recently, StarkNet, a Layer 2 based on ZK Rollups technology, has attracted special attention.
StarkNet is a platform being developed by StarkWare Industries for creating dApps on the Ethereum network. Compared to similar platforms, it provides dApp developers with an amazing development environment with fast processing, high reliability, and low fees.
It serves as a Layer 2 solution on the Ethereum network, using Zero-Knowledge Proof (ZKP) technology to address transaction reliability and processing speed issues in Ethereum. ZKP allows one party to prove that they possess certain information without revealing any additional data. This solution eliminates security issues and enhances transaction confidentiality in the Ethereum network.
StarkNet utilizes the Cairo programming language, which enables developers to scale and deploy dApps and smart contracts in any domain. Cairo will be used by all protocols and decentralized applications built on this network.
The ZK-Rollups system allows the aggregation of hundreds of off-chain transactions at Layer 2 and generates cryptographic proofs called STARKs. These proofs are valid and stored on the Ethereum network. Users' assets can be reliably recovered after block verification, even if operators refuse to cooperate. This technology significantly simplifies and speeds up the interaction between Layer 1 and Layer 2, reducing the time of interaction between projects.
Compared to Optimistic Rollup technology, ZK-Rollups stand out with their faster transaction verification process. In the medium and long term perspective, ZK-Rollups are considered the primary scaling option on the Ethereum network, unlike Optimistic Rollups, which remain viable only in the short term.
Why is StarkNet growing?
Creating a development environment
StarkNet utilizes unique technological capabilities such as zk-STARK, the Cairo programming language, the Cairo-VM virtual machine, and others. The development environments provided by StarkNet offer higher performance, increased security, and expanded functionality. Developers can use the Cairo programming language and the STARK verification mechanism to create secure and reliable smart contracts while enjoying high-speed transaction processing. Temporary difficulties and inconsistencies are possible, but developers can gradually adapt and benefit from them.
The StarkWare ecosystem is optimized for its own needs, unlike other Layer 2 projects that are more Ethereum-oriented. Although such a choice may limit network effects and full compatibility with Ethereum, it is difficult to argue against its logic in terms of thoughtfulness. Especially in light of the author's clear vision that Cairo's own network effects have achieved high speed and efficiency.
In future development, the potential value will be concentrated in these technical characteristics and innovations. With the increasing importance of data privacy and security, the reliable mechanism provided by StarkNet will attract more users and applications.
StarkNet possesses scalability and decentralization capabilities, making it an efficient solution for high-speed data transmission and protection. In the evolving blockchain ecosystem, where constant growth is required, the technical features of StarkNet ensure high performance, security, and confidentiality, giving it significant potential value and a competitive edge.
DeFi Projects on StarkNet
StarkNet, developed by the Israeli startup StarkWare, aims to overcome Ethereum's issues such as high transaction fees and long processing times. This is achieved by enabling computations and data storage outside the blockchain network while maintaining the reliability and security characteristic of blockchain.
The StarkNet platform utilizes a second-layer scaling mechanism called Zero-Knowledge Rollups. It allows hundreds of thousands of transactions to be aggregated off-chain and then verified on-chain at a fraction of the cost.
The StarkNet project aims to increase transaction throughput and reduce transaction costs by moving computations off the main blockchain network and storing only necessary data on-chain. To achieve this goal, it utilizes the mechanism of ZK-Rollup, which combines multiple transactions in the external network into a single proof in the main network. Such a solution supports scalability while maintaining the decentralized and reliable Ethereum ecosystem.
Currently, the StarkNet ecosystem offers various DeFi projects, including DEX, AMM, Lending, and others, to provide users with different liquidity options. Notable projects among them are Starkswap, Jediswap, mySwap, and Zigzag.
Web3 Projects
Within the StarkNet ecosystem, development and testing of various infrastructure initiatives are underway:
- Currently, bridges like Suez, Qasr, Kubri, and others are being developed and tested to facilitate the financial flow into StarkNet.
- The StarkNet blockchain already has an explorer that simplifies transaction monitoring and provides information within the system. Graphical charts display the total number of wallets, overall transaction volume, and other useful information.
- Argent X and Braavos remain popular wallets for asset storage and interaction with system programs within StarkNet.
DAO infrastructures:
- Snapshot and Zorro Protocol are DAO voting infrastructure applications that are currently under development.
- Bibliotheca is a specialized infrastructure for the Ethereum-based Loot project.
The design and deployment of StarkNet infrastructure are currently being actively pursued, providing efficient service to applications.
Game and NFT Projects
Game/NFT projects on StarkNet include:
- Dope Wars, Influence, Realms, Game of Blocks, Eykar, bitmapbox, Phi, and The Ninth are a few of the gaming projects on StarkNet. They are engaging games developed by the StarkNet team.
NFT project:
Platform Description Mint Square A platform for issuing NFTs on StarkNet, which has also created its own mainnet. NFTflow Liquidity provider for NFTs. Briq A program that assists in NFT development on StarkNet. StarkNet Game Development Platform A game development platform on StarkNet. Being the primary gaming platform from StarkWare, it attracts significant attention in the market.
Current Ecosystem Challenges
One of the main problems and challenges that the StarkNet application ecosystem may face in the future is competition with numerous other Layer 2 scaling solutions that are also actively being developed and may have advantages over StarkNet in certain aspects. To attract more developers and users, continuous improvement and innovative development of its technologies are necessary. Another potential challenge is the network effect. Since StarkNet is a new technology, a large number of developers and users are required to achieve a strong network effect. This implies the need for active marketing and promotion.
In dealing with the challenges of ecosystem sustainability, StarkNet must also ensure the viability and attractiveness of its services to maintain consumer loyalty and interest. In the context of emerging competitors and technology advancements, StarkNet must continue to implement innovations and offer attractive services. Simultaneously, StarkNet should strengthen its relationships with developers and partners to ensure the growth and expansion of the ecosystem. Additional complexities also arise:
The adoption of the Cairo programming language limits developer participation. Since Cairo is an entirely new language, developers will have to learn and adapt to it. This may lead to an additional learning curve, reducing the ability of many developers to interact with the StarkNet ecosystem. In contrast, the Ethereum Virtual Machine (EVM) has a well-established developer ecosystem, making it easier for them to get involved and rapidly create applications.
Despite demonstrating its advantages in high throughput and low transaction costs in certain use cases, StarkNet may not be suitable for other application scenarios. In some applications, especially those that do not require processing a large number of transactions, these advantages may be insignificant. As a result, widespread adoption of StarkNet in various companies may require additional verification and demonstration.
Conclusion
Using StarkNet, it is possible to create decentralized educational applications, such as online learning platforms that offer courses and training for students, teachers, and professionals in various fields.
In addition, StarkNet can be utilized for building decentralized medical applications, including patient medical record management systems, platforms for health monitoring, provision of consultations, and other medical services.
Overall, StarkNet provides developers with a platform to create high-quality and scalable applications. With its outstanding features such as high processing speed, reliability, low cost, and high scalability, StarkNet promises to become a powerful blockchain platform for future development.
