Starknet Price

StarkNet is a decentralized, permissionless Layer 2 scaling solution for Ethereum designed by StarkWare. It utilizes STARK (Scalable Transparent ARguments of Knowledge) zero-knowledge proof technology to increase the scalability and privacy of transactions and smart contracts on the Ethereum network.

By processing transactions off the main Ethereum chain (Layer 1) and batching them into a single transaction that is then verified on Ethereum, StarkNet aims to significantly reduce transaction costs and increase throughput without compromising on security.

StarkNet operates as an Ethereum Layer 2 network, building on top of the Ethereum blockchain to offer enhanced capabilities. It allows developers to write scalable decentralized applications (dApps) using Cairo, a Turing-complete programming language developed by StarkWare specifically designed for creating STARK-based dApps. This enables StarkNet to process a large number of transactions at a fraction of the cost and time it would take on the Ethereum mainnet while still inheriting Ethereum's robust security guarantees.

In February 2024, the StarkNet ecosystem introduced its native network token, STRK, which plays a significant role in its governance, staking, and transaction fee mechanisms. The StarkNet Foundation announced plans to distribute 1.8 billion STRK tokens to drive adoption and growth within the StarkNet blockchain.

This distribution is set to begin on February 20, 2024, making it one of the most expansive in the industry, acknowledging the symbiotic relationship between Layer 1 and Layer 2 technologies. The distribution is designed to reward early users of ecosystem dapps, network contributors, and even Ethereum stakers, underlining the interconnectedness between StarkNet and the broader Ethereum ecosystem.

STRK tokens are intended for governance, allowing holders to vote on improvement proposals and changes to the StarkNet protocol. Additionally, these tokens may be required to stake in critical protocol services and pay transaction fees, which are currently in ETH. The introduction of STRK marks a significant step towards StarkNet's goal of creating a more scalable, efficient, and user-friendly ecosystem atop Ethereum.

The STRK token is available for trading on KuCoin’s Pre-market trading platform.

StarkNet operates as a Layer 2 scaling solution for the Ethereum blockchain, leveraging Zero Knowledge (ZK) proofs, specifically STARKs (Scalable Transparent ARguments of Knowledge), to enhance the scalability, privacy, and efficiency of transactions and smart contracts on Ethereum. Here's an overview of how StarkNet works:

1. Ethereum Layer 2 Scaling: StarkNet functions as a secondary layer on top of Ethereum. Instead of executing all transactions directly on the Ethereum mainnet (Layer 1), which can be slow and expensive due to its limited capacity, StarkNet processes transactions off-chain. This approach reduces congestion and gas fees on the main Ethereum network.

2. Zero Knowledge Proofs: StarkNet uses STARKs, a type of zero-knowledge proof technology, to maintain security and privacy. ZK-STARKs allow a party to prove to another party that a certain statement is true without revealing any information beyond the validity of the statement itself. In the context of StarkNet, it can process and validate transactions without exposing the actual data of those transactions, enhancing privacy and security.

3. Batching Transactions: Transactions made on StarkNet are batched together and processed off-chain. Once processed, these transactions are compiled into a single proof and submitted to the Ethereum mainnet. This proof certifies that all included transactions are valid under the rules of the Ethereum blockchain without needing to post each transaction's data on-chain. This method significantly reduces the data footprint and cost of transactions.

4. Cairo Programming Language: StarkNet introduces Cairo, a Turing-complete programming language designed specifically for writing STARK-based smart contracts. Cairo allows developers to create complex dApps with enhanced capabilities, such as privacy-preserving computations and high throughput, leveraging the power of ZK-STARKs.

5. Decentralization and Permissionlessness: StarkNet is designed to be a decentralized network that supports permissionless deployment of smart contracts. Anyone can develop and deploy dApps on StarkNet without requiring permission from a central authority, similar to Ethereum. However, StarkNet aims to offer this with higher scalability and lower costs.

6. Interoperability with Ethereum: StarkNet is closely integrated with Ethereum, ensuring compatibility and seamless interactions between dApps on StarkNet and those on the Ethereum mainnet. This interoperability is crucial for leveraging Ethereum's established ecosystem while offering improved transaction efficiency and scalability through StarkNet.

StarkNet was fully launched in February 2022 by StarkWare Industries, an Israel-based blockchain company focused on scaling Ethereum through innovative technologies. StarkWare, the developer behind StarkNet, has been instrumental in advancing Ethereum's scalability solutions, having also developed StarkEx, a permissioned network, before StarkNet​.

Here are some key milestones in the StarkNet roadmap to know of:

1. The launch of its native token, STRK, is used for governance, staking, and network fees, with a portion reserved for long-term stakeholders to ensure stability.

2. StarkWare established the StarkNet Foundation, a non-profit that promotes network growth and decentralization and holds a significant share of STRK tokens for beneficial allocations.

3. The 'Devonomics' pilot program was initiated to reward developers who contribute to the network with a portion of transaction fees, encouraging active community participation.

4. StarkNet has implemented technical upgrades, such as v3 transactions and EIP-4844 integration, to enhance performance and reduce costs.

5. Community governance has been instrumental in supporting protocol upgrades, like StarkNet Alpha v0.13.0, improving transaction costs and network capabilities.

Here's a breakdown of the primary uses for the STRK token:

1. Governance of StarkNet: STRK holders can vote on major changes to the StarkNet protocol, playing a crucial role in its development and future direction​​​​.

2. Pay Network Fees: One of the innovative features of STRK is its utility in paying network fees (or gas), offering an alternative to Ether (ETH). This flexibility is part of StarkNet's broader strategy to improve user experience and accessibility​​​​.

3. STRK Staking for Network Security: STRK is expected to be integral to the security of the StarkNet network through a staking mechanism. Like ETH is used on the Ethereum mainnet, staking STRK will contribute to network validation and security processes​​​​.

4. Fee Token: Discussions within the StarkNet community have highlighted the role of STRK as a fee token, which could lead to reduced gas fees on the network. This utility aligns with efforts to make StarkNet an efficient and cost-effective platform for users and developers​.

5. Trade StarkNet on KuCoin: Trade STRK on the KuCoin Spot Market to make the most of changing market conditions and volatility. Buy or sell STRK or hold the token long-term if you believe in the future potential of the StarkNet layer-2 network, but only after doing your own research (DYOR).