StarkWare: Exploring STARK Technology and Layer 2 Scaling Solutions

StarkWare is a company focused on blockchain scaling solutions, founded by Professor Eli Ben-Sasson and others from the Israel Institute of Technology. The company primarily develops two products: StarkEx and StarkNet, both based on STARK zero-knowledge proof technology.

STARK technology originates from the PCP concept proposed in 1991, ensuring the integrity of large-scale computations through mathematical methods. StarkWare applies this technology to blockchain scaling solutions, providing efficient and secure Layer 2 solutions.

StarkEx

StarkEx is a Layer 2 scaling solution engine designed for specific applications, primarily used to optimize the performance of a single application. It achieves fast and low-cost transactions by processing transactions in batches and verifying them off-chain. StarkEx has been applied in multiple projects, such as dYdX, Immutable, and others.

StarkNet

StarkNet is a more general Layer 2 network that allows developers to deploy smart contracts. It uses the Cairo programming language and supports the development of various decentralized applications. StarkNet aims to provide a scalable, low-cost, and secure environment for the Ethereum ecosystem.

StarkNet is continuously upgrading, with the latest version v0.11.0 starting the transition to Cairo 1.0, and plans to further increase TPS. New features such as off-chain data availability will also be introduced in the future.

Account Abstraction

StarkNet adopts an account abstraction design, allowing users to customize account functionalities. The account contract needs to include two core functions: validate and execute. This design provides users with a more flexible and secure account management experience.

Token Economics

StarkNet plans to issue a total of 10 billion native tokens for paying transaction fees, staking, and governance. The token distribution plan includes:

• 17% allocated to investors
• 32.9% allocated to core contributors
• 50.1% managed by the StarkNet Foundation, used for community rewards, ecological development, etc.

Business Model

StarkWare's business model includes:

1. Provide customized StarkEx services to clients and charge fees.
2. Collect transaction fees, MEV profits, etc. through the StarkNet network.
3. Issue tokens and incubate ecological projects

StarkWare occupies a leading position in the ZK-Rollup track, receiving support from top investors including Vitalik, with a valuation of $8 billion. In the future, StarkNet will continue to refine its technology and promote ecosystem development, and is expected to play an important role in the Layer 2 market.