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StarkNet tokens: How to get in on StarkWare’s ZK roll-up Layer 2 ETH scaling solution

04:56, 2 August 2022

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Layer 2 written on a bright background
Layer 2 solutions aim to slash ETH gas fees Photo: Shutterstock

Zero-knowledge (ZK) rollup chains have burst into popularity from developers looking to build Layer 2 blockchains on the Ethereum network and the latest addition to the scene is StarkWare.

The most high profile ZK chain is Polygon Zero (MATIC) but a number of others exist and they are used to increase scalability and crucially reduce ETH’s eye-watering gas fees.

The key feature of the subset of blockchains is they execute transactions offchain to reduce gas fees while giving greater flexibility for firms working on decentralized apps (dApps).

MATIC to US dollar

Layers 2 chains are seen as essential to the development of decentralized networks so what is StarkWare’s ZK roll-up Layer 2 ETH scaling solution?

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Shrinking ETH gas fees

According to cryptocurrency firm Alchemy,  StarkNet, a is permissionless decentralized ZK and its gas fees are 100x lower than ETH’s.

This makes it perfect for developers of high transaction dApps.

According to Alchemy, Starknet currently has a total value locked of 1bn USD, and has made a total of 173 million transactions and minted over 56 million non-fungible tokens (NFTs).

The data was taken on 25 May 2022. 

XRP/USD

0.48 Price
+2.770% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 0.00660

BTS/BTC

0.00 Price
-3.640% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 0.00000002

LUNA/USD

2.57 Price
0.000% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee -0.0500%
Overnight fee time 21:00 (UTC)
Spread 0.0519

ETH/USD

1,362.28 Price
+2.670% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 5.50

ETH to US dollar 

Unsurprisingly given this set-up the backers of Starknet,  Eli Ben-Sasson and Alessandro Chiesa who set the firm up in 2017, are looking to bring “crypto apps for all”.

Widening dApps' appeal 

It is the first ZK to offer a general-purpose smart contract platform on a fully composable network, according to Alchemy.

This means anyone can develop their own dApps or send transactions via smart contracts

Just like Ethereum and Solidity, StarkNet’s smart contracts are written in Cairo and additional languages will soon be added to the protocol. 

What is a zero-knowledge rollup?

A Zero-knowledge rollup (ZK) is a layer 2 scalability solution that allows blockchains to process transactions quicker and cheaper. 

ZK’s are typically built on the Ethereum Layer 1 blockchain and this is done by integrating on-chain and off-chain aspects.

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