Key Points:
StarkNet uses Cairo language, a language that allows developers to scale and deploy dApps or smart contracts in any field.
Compared with Optimistic Rollup technology, Zk-Rollups is appreciated for its optimized transaction validation process and time.
However, using the Cairo programming language makes it difficult for the number of applications and developers to scale to the network.
Starknet’s TVL is estimated to be about $12 million at the time of writing. As compared to the TVL only three months ago, this is a huge 10-fold gain. So why is this ecosystem so dominant at this time, let’s find out with Coincu.
What is StarkNet?
Vitalik Buterin once emphasized that although Optimistic Rollups have a shorter development period, the fundamentals of Zero-knowledge Rollups technology will quickly make them “layer 2 leading”.
Layer 2 scaling solutions for Ethereum have seen rapid growth in recent years. Layer 2 employing ZK rollups technology, in particular, is highly valued by the blockchain community due to its superior advantages over alternative scaling methods on a variety of metrics, including transaction prices, time completeness, and reliability assumptions. StarkNet, a layer 2 that employs ZK Rollups technology, has received a lot of attention recently.
StarkNet is a dApps development platform developed on the Ethereum network by StarkWare Industries. As compared to comparable platforms, this platform delivers an amazing development environment for dApps developers, with rapid processing, great dependability, and cheaper expenses.
Its functions as an Ethereum layer 2 solutions, using Zero-Knowledge Proof (ZKP) technology to address the issue of transaction dependability and processing speed on the Ethereum network. ZKP enables a party to demonstrate that they have accurate information without giving any further information. This eliminates security concerns and improves transaction privacy on the Ethereum network.
StarkNet employs the Cairo programming language, which enables programmers to scale and deploy dApps or smart contracts in any area. Cairo will be used by all protocols and dApps built on the network.
The ZK-Rollups system is capable of “Rollups” of hundreds of off-chain transactions on Layer-2 and creates STARK cryptographic proofs. This is legitimate proof that is saved on the Ethereum network. Users’ assets are guaranteed to be recoverable after a block is validated, even if the operators refuse to assist. This technology will make the connection between Layers 1 and 2 simple and comfortable, and the interaction time between projects will be reduced.
As compared to Optimistic Rollup technology, Zk-Rollups is praised for its faster transaction validation procedure. In the medium and long term, Zk-Rollups is regarded as the main scaling option on the Ethereum network, as opposed to Optimistic Rollups, which is only viable in the short run.
Why is StarkNet growing? Create an environment for developers
StarkNet adopts unique technical features, such as zk-STARK technology, custom development language Cairo and virtual machine Cairo-VM, etc. Custom development environments lead to higher performance, better security, and richer functionality. Developers can use the Cairo programming language and STARKs verification mechanism to build safe and reliable smart contracts while enjoying high-performance transaction processing. Although there will be some friction, this friction is temporary, and developers can gradually adapt and benefit from it.
StarkNet uses a custom development language Cairo and a virtual machine Cairo-VM, which is different from other Layer 2 solutions that borrow Ethereum components. Cairo is a custom programming language for the StarkWare ecosystem.
The StarkWare ecosystem is optimized for itself, while other Layer2 projects are more optimized for Ethereum. Although this choice sacrifices network effects that are fully compatible with Ethereum, it is difficult to argue against the rationale of this design choice, especially now that the author has clearly seen that Cairo’s own network effects have reached escape velocity.
In future development, these technical features and innovations will bring potential value. With the growing importance of privacy protection and data security, the strong privacy protection mechanism provided by StarkNet will attract more users and applications.
At the same time, StarkNet’s scalability and decentralization features make it an effective solution for high throughput and security needs. As the blockchain ecosystem develops and needs to grow, StarkNet’s technical features in providing high performance, security, and privacy protection will endow it with great potential value and stand out from the competition.
Various DeFi projects
Starknet, developed by the Israeli startup StarkWare, is intended to overcome the Ethereum blockchain’s shortcomings, such as high transaction fees and lengthy transaction processing times, by allowing off-chain calculations and data storage while still using the blockchain’s security assurances.
Starknet does this by using a layer-2 scaling mechanism known as zero-knowledge rollups, which bundles hundreds of thousands of transactions off-chain and then validates them on-chain for a fraction of the cost.
Starknet seeks to enhance transaction throughput and lower transaction costs by shifting calculations off-chain and keeping just the essential data on-chain. This is accomplished through ZK-rollups, a mechanism that permits the aggregation of numerous off-chain transactions into a single on-chain proof. This solution maintaining scalability while keeping Ethereum’s decentralized and trustless character.
Currently, the Starknet ecosystem seems to be full of DeFi projects from DEX, AMM, Lending,… to provide diverse liquidity methods for users. Prominent among them include Starkswap, Jediswap, mySwap, Zigzag.
Good Web3 projects
Strong infrastructure
Among the infrastructure initiatives on the StarkNet ecosystem are:
Suez, Qasr, Kubri, and other bridges are being developed and tested to deliver financial flow to StarkNet.
Since there are many graphical charts running on the system, Explorer on the system already has and facilitates monitoring transactions as well as information in the system pretty readily (for example, the chart shows the total amount of wallets, total transaction volume, etc. ..).
The most popular wallets for storing assets and interacting with system programs are still Argent X and Braavos.
Infrastructures for DAOs:
Snapshot and Zorro Protocol are infrastructure applications for DAO voting in the works.
Bibliotheca is a specialized infrastructure for the Ethereum-based NFT project Loot.
StarkNet’s infrastructure is presently being built and serves apps effectively. Bridges and infrastructure are now being built.
Many gaming/NFT projects
StarkNet’s gaming/NFT projects include:
Dope Wars, Influence, Realms, Game of Blocks, Eykar, bitmapbox, Phi, and The Ninth are some of the StarkNet gaming projects.
NFT Marketplace project:
Mint Square is a platform for NFT issuance on StarkNet that has also established its mainnet.
NFTflow is a liquidity provider for NFTs.
Briq is a program that assists in the development of NFT on StarkNet.
StarkNet’s game development platform: On StarkNet, ImmutableX is a game development platform. Since it is the primary game platform on StarkWare, this platform gets a lot of market attention.
Current ecosystem challenges
One of the most significant challenges and bottlenecks that StarkNet’s application ecology may face in the future is competition because there are many other Layer 2 expansion solutions that are also working hard to develop, and in some ways have advantages over StarkNet, so it is necessary to continuously improve their technology. In order to attract additional developers and users, you must innovate and enhance. The network effect is another possible issue. Since StarkNet is a novel technology, it requires a large number of developers and users to have a powerful network effect, hence extensive marketing and promotion are required.
Another problem that StarkNet confronts is maintaining the ecosystem’s survival. As new rivals arise and technology improves, StarkNet must continue to innovate and provide appealing services in order to keep consumers loyal and engaged. At the same time, StarkNet must cultivate strong ties with developers and partners in order to enable the ecosystem’s development and expansion. Additional difficulties include:
The Cairo language’s adoption restricts developer involvement: Since Cairo is a whole new programming language, developers must learn and adapt to it. Many developers may have an additional learning curve as a result, reducing their capacity to engage in the StarkNet ecosystem. Ethereum’s EVM, on the other hand, has a larger developer ecosystem, making it simpler for developers to get started and swiftly construct apps.
Despite the fact that StarkNet has proved the benefits of high throughput and cheap transaction costs in some use cases, it is not relevant to other application situations. These benefits may be insignificant for certain applications, particularly those that do not need the processing of a high number of transactions. As a result, broad adoption of StarkNet across diverse businesses may need further verification and demonstration.
Conclusion
StarkNet can be used to develop decentralized educational applications such as online learning platforms, providing courses and training for students, teachers and professionals in various fields.
In addition, the platform can also be used to develop decentralized medical applications such as patient record management systems, health monitoring, and consulting platforms, as well as services.
Overall, StarkNet is providing developers with a platform to create high-quality and scalable applications. However, several issues remain to be considered with Cairo.
With outstanding features such as fast processing speed, reliability, low cost, and high scalability, StarkNet promises to be a strong development blockchain platform in the future.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
