Author: stella@footprint.network Data source: Starknet Dashboard
The “Three Blockchain Problems”, or the “Three Scalability Problems”, emphasize the challenges that blockchain platforms will face if they want to balance security, decentralization and scalability. Typically, blockchain architectures can only effectively prioritize two of these challenges. For example, Ethereum prioritizes security and decentralization, resulting in many challenges with scalability. But the Ethereum community has recognized the importance of scalability and has been actively seeking solutions.
When discussing Ethereum expansion solutions, we mainly focus on Layer 2 solutions. Their main goal is to solve the limitations of Layer 1. These Layer 2 solutions are designed to increase transaction throughput without compromising decentralization or security. There are currently several Ethereum Layer 2 solutions, including Rollups, State Channels, and Nested Blockchains.
Rollups
Rollups are a Layer 2 solution that aggregates (packages) numerous transactions into a single transaction in Layer 1, saving costs for users by spreading transaction fees among participants within the aggregation (package). There are two main types of Rollups: Optimistic Rollups and Zero-knowledge Rollups (ZK-Rollups). The former defaults to every packaged transaction being accurate and credible (as the name suggests, optimistic) and directly enters the verification link, but at the same time it introduces a challenger mechanism to ensure the validity of off-chain transactions; the latter uses zero-knowledge proof mathematics Encryption enhances privacy and security. Examples of Optimistic Rollups include Optimism, Arbitrum, and Boba Network, and applications of ZK-Rollups include Starknet, zkSync, and Scroll.
In this article, we will explore Starknet, an innovative Layer 2 solution based on ZK-Rollup technology.
Starknet: What is it? Why?
Eli Ben-Sasson, co-founder of STARK and ZCash, founded StarkWare in January 2018 to improve the scalability and privacy of the blockchain. StarkWare achieves this goal by leveraging STARK technology, a cryptographic proof system, to deploy and verify zero-knowledge proofs.
One of StarkWare’s notable products is Starknet, a permissionless ZK-Rollup solution that enables general purpose computing. Currently, Starknet operates as a Layer 2 network on Ethereum and ensures ultimate Layer 1 security through STARK technology. Starknet achieves scalability by generating STARK proofs off-chain and then verifying them on-chain, thereby increasing transaction throughput and efficiency.
Positive data performance
Starknet is becoming increasingly popular within the StarkWare ecosystem and is attracting attention from the wider community.
Source: Starknet Daily Active Accounts
The number of daily active accounts on Starknet has shown significant growth since March 2023. As of August 26, 2023, the number of daily active accounts has reached 161,252, indicating steady growth in user engagement. This upward trend indicates growing interest in Starknet and its capabilities as a Layer 2 solution. This means that more and more users are actively participating in transactions, interactions and decentralized applications (dApps) built on the Starknet ecosystem.
It is worth noting that the platform reached its peak number of daily active accounts on July 28, 2023, reaching 384,447. The surge in user activity is mainly due to the launch of a unique NFT called SPOK (Starknet Proof-of-Kudos) by Unframed, an NFT trading market on Starknet. Unframed introduced this unique NFT through an open and free minting event, sparking huge interest and engagement within the community. According to data from Footprint Analytics, a whopping 76.4% of the day’s active accounts interacted with the SPOK contract, further highlighting the enthusiasm of users to participate in the activity and the appeal of Starknet’s NFT ecosystem.
Source: Starknet Daily Transactions & Transaction Fees
Starknet has seen a significant increase in daily transaction volume since March 2023, indicating that activity on the platform is growing. As of August 26, 2023, daily transaction volume reached 598,200, demonstrating significant growth in user interaction and participation. It is worth noting that the platform’s daily trading volume reached 560,400 on July 28, 2023. This transaction surge was mainly driven by the launch of SPOK NFT.
During this time, Starknet’s transaction fees have fluctuated. On May 9, 2023, the platform’s transaction fees peaked at 177.84 ETH. This indicates increased demand for transaction processing, with users willing to pay higher fees for faster and more secure transactions. However, on August 26, 2023, the transaction fee dropped to 73.36 ETH. The decrease in fees could be attributed to various factors such as optimization of the protocol, increased competition among validators, or changes in user behavior.
According to data from Footprint Analytics, as of August 26, 2023, Starknet’s total transaction volume was 32.7884 million, and the total transaction fee was 8,963.15 ETH. Starknet’s growth in daily transaction volume and fluctuations in transaction fees highlight the platform’s ability to handle increased user activity and maintain fee efficiency. As more users and dApps adopt Starknet, transaction volume is expected to continue to rise, and transaction fees may change based on market dynamics and network optimization.
Source: Starknet Daily Amount Bridged in ETH
Starknet has seen significant growth in daily cross-chain amounts (Ethereum) since March 2023. On August 12, 2023, the daily cross-chain amount reached a peak of 12,570.13 ETH, consistent with 7,397 active users. On August 26, 2023, the number of active users reached a peak of 15,110, and the daily cross-chain amount was 6,622.88 ETH. This significant increase in cross-chain value demonstrates increased confidence in Starknet as a reliable and secure Ethereum transfer and storage platform.
Main Features
As a Layer 2 solution, Starknet has several advantages:
- Once the validity of the packaged transaction is verified in Layer 1, Starknet will immediately approve the status update to ensure faster transaction timeliness. This means transactions are confirmed quickly and securely, improving the overall user experience.
- Starknet utilizes Layer 1 data storage to ensure the security, censorship resistance, and decentralization of critical information. By storing off-chain state recovery data in Layer 1, Starknet ensures that users’ data is always protected and accessible.
- Starknet provides users with capital utilization efficiency and withdrawal flexibility. Users can withdraw funds from Layer 2 without delays, giving them greater control over their assets, which should help drive widespread adoption of the platform.
On the other hand, Starknet also has some limitations:
*Cairo, Starknet’s native programming language, can be a hurdle for dApp developers accustomed to languages like Solidity. While Starknet is working on compatibility between Solidity and Cairo through the translator Warp, learning a new language may slow down the development of the ecosystem.
- Starknet is not fully compatible with EVM, which means it needs to be synchronized with EVM updates, which may increase the complexity of the development process.
- The generation of validity proofs on Starknet requires specialized hardware, which can lead to centralized control and a limited number of participants capable of advancing the chain. This may increase the risk of malicious operators freezing rollup status or censoring users, highlighting the need for careful consideration of network governance and security mechanisms.
Ecology
A key advantage of Starknet is its ability to provide high throughput, low transaction costs, and privacy protection. These features make Starknet very flexible and provide broad prospects for applications in various fields, including GameFi, NFT and DeFi.
Starknet positions itself as an important supporter of full-chain games in the public chain field. The platform has many very popular and engaging full-chain games, including LootRealms, GOL2, Isaac, Unstoppable Games, and more. These games have attracted widespread attention and become a source of excitement and entertainment for users within the Starknet ecosystem.
Source: GOL2
Here are some noteworthy projects in the Starknet ecosystem. In the NFT field, there are projects such as Starknet Quest, Starknet.id, AlmanacNFT and Comoco; in the DeFi field, there are projects such as JediSwap, Nostra, zkLend, Brine and StarkEx. They demonstrate the innovation and growth potential of the Starknet ecosystem.
$STARK 及 Starknet Airdrop
In November 2022, Starknet launched its native token $STARK on Ethereum. These tokens are initially distributed among shareholders, employees, and independent partner software developers. However, the tokens are locked for four years and are scheduled to be gradually released starting in November 2023.
Starknet has attracted considerable attention in the cryptocurrency community due to its upcoming token airdrop. The highly anticipated airdrop triggered a surge in user engagement and activity on the platform since July 2023.
来源：Starknet Monthly Amount Bridged in ETH
According to data from Footprint Analytics, since July 2023, the monthly cross-chain transaction volume of ETH on Starknet has shown significant growth. In March, there were 139,823 independent users, and the monthly cross-chain amount reached 16,374.83 ETH. By August (as of August 26), the number of unique users of Starknet had increased to 156,332. During this period, the monthly cross-chain amount increased significantly to 148,316.71 ETH.
Starknet has attracted attention for its inclusive distribution of tokens to community members. If an airdrop occurs, it is expected to be distributed to individuals actively participating in the Starknet ecosystem. This may include users who have created Starknet wallets, linked assets to Starknet, used Starknet’s dApps, and participated in Starknet governance.
Conclusion
To summarize, Starknet is experiencing significant growth and positive trends, indicating increasing user engagement, adoption, and trust in it as a scalable and efficient Ethereum Layer 2 solution.
At the 2022 ETH Seoul conference, Vitalik Buterin predicted that ZK-rollups will defeat Optimistic Rollups in the Layer 2 scaling competition. With its promising features and capabilities, Starknet has the potential to shape the future of Ethereum and solidify its position as the leading ZK-rollup platform. The transformative impact that Starknet can bring to the blockchain ecosystem is indeed worthy of our anticipation and enthusiasm.
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