Scalability is a significant difficulty for blockchains, particularly Ethereum. As the total number of users and transactions on a blockchain network grows, performance decreases and expenses increase. Here’s where Ethereum scaling solutions like Starknet come into play. Starknet aims to improve the speed and cost of Ethereum transactions.
Basically, what is Starknet?
Starknet is a validity rollup (also known as a zk-rollup) on the Ethereum network. Rollups execute the bulk of transaction processes beyond Ethereum and then confirm those transactions to Ethereum, lessening the strain on the Layer 1 blockchain and resulting in quicker and cheaper transactions.
Starknet was created by StarkWare Industries, an Israeli blockchain company, in 2018, to expand Ethereum. Starknet officially debuted in February 2022 as an unrestricted Layer 2 network, allowing anybody to create decentralized applications or dapps on it. Another platform developed by StarkWare is called StarkEx, and it has been in use since June 2020. However, StarkEx is a permissioned network tailored to the particular requirements of dapps.
How does Starknet function?
To increase scalability, Starknet functions as a Layer 2 node, accepting transactions on its network and resolving them on Ethereum. It does this by condensing thousands of transactions into a data format known as a “proof,” which is then sent to Ethereum as an actual transaction. This considerably improves throughput (the number of transactions processed per second) while also extendly lowering transaction costs.
StarkNet employs a unique proof technique known as zk-STARK, or zero-knowledge scalable transparent argument of knowledge. This technology checks transactions without releasing personal information, hence boosting privacy and security.
Starknet has two primary parts: the Sequencer and the Prover. Sequencers execute transactions and propose blocks, completing more transactions per second than Ethereum nodes. Provers guarantee the legitimacy of block transactions. Starknet plans to deploy its native currency, STRK, in April 2024, with a total quantity of ten billion tokens for transaction fees, management, and staking on the network.
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Procedure for Transition
1. Ensuring the accessibility of a Fully Open-Sourced Software Stack: An open-source software stack is necessary to allow for broader involvement in the protocol and network. The different components will be released as open source so that testing and evaluation may take place. Provers (Stone, Sandstorm) and entire nodes (Pathfinder, Juno, and Deoxys) are notable instances of open-sourced components.
2. Network Architecture with Decentralization: The Starknet network is moving towards a decentralized topology in which complete nodes connect with the Sequencer via a centralized feeder gateway. This transition will result in entire nodes joining a peer-to-peer network, eliminating the necessity for a link between them and the Sequencer. This patch will also include Sequencer signing blocks to reduce trust implications and provide for a vote-based BFT protocol with a large number of voters. Data propagation will spread rapidly, with nodes synchronizing with the state and completing their local view.
3. Building Wider Testing and Integration Networks: To ensure a seamless transition, testing and integration networks must be established. The components will move from internal testnets to permissioned testnets involving external respondents, and ultimately to public testnets, integration, and mainnet. Decisions on whether to introduce additional components sequentially or concurrently will have to be made over time.
4. Increasing Staker Onboarding: For the decentralized system to function properly, the L1 staking contract must accrue a sufficient quantity of staked tokens. This assures that people who engage have genuine economic weight, lowering the likelihood of malicious control efforts. Staker onboarding is critical for accomplishing this aim.
Conclusion
StarkWare’s plan for decentralizing Starknet is a huge step towards reducing trust and maintaining network resiliency even if centralized organizations collapse. Starknet will improve its security and dependability by switching to a decentralized proof-of-stake system, allowing users and the larger community to actively engage in its creation and management.
