In recent years, blockchain technology has revolutionized various industries, and the decentralized finance (DeFi) sector has been one of the biggest beneficiaries. The rise of DeFi has resulted in a tremendous demand for solutions that can offer scalability, security, and privacy to users. That’s where Starkware, StarkNet, and StarkEx come into play.
In this ultimate guide, we will explore the Starkware ecosystem in detail and discuss how it aims to revolutionize the DeFi space. We will also delve into the technology behind StarkNet, and StarkEx, and how they can help create a more secure and scalable DeFi ecosystem.
Key Takeaways:
- The STARKs technology enhances the scalability of blockchain systems by effectively verifying the accuracy of computations.
- StarkEx serves as a specialized scaling solution for specific applications.
- StarkNet is a decentralized, Smart contract-based network that is EVM Compatible
Starkware, StarkNet, and StarkEx Explained
Starkware is an Israel-based blockchain technology company that provides solutions for secure and scalable blockchain networks. It specializes in developing zero-knowledge (ZK) proofs, a cryptography technique that allows for the verification of transactions without revealing any underlying information.
- Starkware Currently Building two Projects: StarkNet and StarkEx
StarkNet is the name of Starkware’s blockchain network that uses ZK-Rollups. They use zero-knowledge proofs to bundle several smaller transactions into a single, larger transaction that can be verified off-chain. This helps to reduce the burden on the Ethereum main chain, resulting in faster and cheaper transactions.
The innovative solution for crypto exchanges, StarkEx, is brought to you by StarkWare. This platform takes advantage of STARK technology, ensuring fast, secure, and efficient trading of digital assets.
By using cryptographic proofs, StarkEx verifies the authenticity of multiple transactions, such as trades and transfers, and updates the status of the exchange on the blockchain.
With StarkEx, crypto exchanges have the ability to offer large-scale, non-custodial trading with substantial liquidity and minimal costs. Currently, the platform supports ETH, ERC-20, and ERC-721 tokens, and has the potential to accommodate tokens on other EVM-compatible blockchains as well.
In operation on the Ethereum mainnet since June 2020, StarkEx has already established itself as a reliable and mature platform.
What are STARKs?
STARKs, or Succinct Transparent ARgument of Knowledge, are cryptographic proofs that are highly efficient and verifiable. They are a type of zero-knowledge proof, meaning they demonstrate the validity of a statement without revealing information about the underlying data.
STARKs are used in blockchain and decentralized systems to provide a secure way to prove the correctness of computations. They are used to validate transactions, enforce smart contract terms, and provide privacy-preserving authentication.
One of the key features of STARKs is their efficiency. They generate smaller and faster-to-verify proofs compared to traditional zero-knowledge proofs. This makes them well-suited for blockchain systems with low latency and high scalability.
Must Read: zk-STARKs vs zk-SNARKs
StarkNet vs Optimistic Rollups
- Scalability: StarkNet is a scaling solution built by Starkware that uses zk-SNARKs, a type of zero-knowledge proof, to enable fast and scalable transactions. Optimistic Rollups, on the other hand, use fraud proofs to enable fast and scalable transactions on the Ethereum network.
- Complexity: StarkNet’s technology is more complex than Optimistic Rollups, requiring a deep understanding of zk-SNARKs to fully comprehend and use it.
- Privacy: With zk-SNARKs, the information being transferred between parties is kept private, while still allowing the network to verify the validity of the transaction. Optimistic Rollups do not provide privacy for transactions by default.
Must Read: zk-Rollups vs Optimistic Rollups
How to Use Argent X: StarkNet Wallet
MetaMask Wallet does not support StarkNet, therefore the StarkNet Layer 2 network cannot be integrated with it. However, the primary wallet for StarkNet users is Argent X, which boasts a user base of over 200,000 people and is the central hub of the ecosystem.
You can Download Argent X From the Chrome web store. It is a secure browser extension wallet for interaction with StarkNet Ecosystem DApps.
Open the app and follow the instructions to create a new wallet. You will be asked to create a password for your wallet and write down a recovery phrase that will be used to restore your wallet if you lose access to your device.
StarkNet Ecosystem DApps
StarkNet is an ecosystem of decentralized applications (dApps). These dApps offer a wide range of services and benefits, from enabling secure and decentralized transactions to providing high returns on investment.
There are over 120 ventures currently under development on the StarkNet platform. A few of the most exceptional functioning applications on the StarkNet testnet include:
- StarkGate Bridge: StarkGate is the Ethereum↔StarkNet token bridge developed by StarkWare.
- 10KSwap: 10KSwap is a Layer 2 AMM protocol building on StarkNet
- Amarna: Amarna is a static analyzer and linter for the Cairo programming language.
- AlmanacNFT: AlmanacNFT is a collection of 10.000 unique crypto trading days. Just pick a market, pick a date, and mint a day in crypto.
- Braavos: First and only StarkNet wallet on mobile, Android & iOS.
Cairo Programming Language
Cairo is a smart contract programming language that was specifically designed for the StarkNet blockchain platform. It was created to provide a simple and efficient way for developers to build decentralized applications and smart contracts on the platform.
Cairo’s syntax is designed to be easy to read and understand, making it accessible to developers with different levels of experience. The language also features advanced security features such as automatic memory management and protection against buffer overflow attacks.
In addition, Cairo also supports advanced features such as gas optimization, enabling developers to create contracts that are cost-effective and efficient in terms of computational resources.
Conclusion
The Ethereum blockchain has undergone a major change with the arrival of STARKs, and two Layer-2 Scaling Solutions, StarkEx, and StarkNet are at the forefront of this transformation as STARK-based scaling solutions. They offer improved scalability, low transaction costs, and strong security.
Despite these similarities, there are notable differences between the two in terms of their operational needs and compatibility with other systems. StarkEx is a good choice for applications that can operate within its API framework, while StarkNet is more suited for protocols that need real-time communication with other protocols or have more complex requirements that go beyond the capabilities of StarkEx.
These cutting-edge solutions have a bright future, as they continue to make previously infeasible applications possible and push the limits of what can be accomplished on the blockchain
