Share this article
StarkWare Launches Layer 2 Product StarkNet on Ethereum
StarkNet uses zero knowledge rollups to squash Ethereum’s crushing transaction costs.
By Sam Reynolds
Updated May 9, 2023, 3:38 a.m. Published Feb 23, 2022, 2:30 p.m.
Make us preferred on Google
StarkWare's layer 2 product for the Ethereum blockchain – StarkNet – is ready for the deployment of decentralized apps (dapps), the company said.
- StarkNet uses zero knowledge (ZK) rollup technology to solve Ethereum’s scaling problem.
- Ethereum’s high transaction costs, or gas fees, have encouraged a Cambrian explosion of alternatives. Some are new blockchains such as Solana, while others look for efficiencies in the Ethereum blockchain to make it more competitive.
- While layer 1 platforms like Solana have made significant progress in the past year, they are still plagued with growing pains. StarkNet’s use of ZK rollups seeks to marry the security of Ethereum with the need for lower fees.
- ZK rollups involve bunching together hundreds of transactions into one, which is then written to the Ethereum blockchain. The process is computationally intensive, but because it involves writing one, not hundreds, of transactions to the blockchain it reduces gas fees by a lot.
- The underlying technology used in StarkNet has also been deployed on dYdX, a market for cryptocurrency derivatives that runs on Ethereum without the usual fees associated with it.
- In a press release, Tel Aviv, Israel-based StarkWare said that by the end of 2022 StarkNet is expected to achieve one order of magnitude higher transactions per second than Ethereum at a cost that is at least two orders of magnitude lower.
- In November, StarkWare closed a Series C funding round that valued the company at $2 billion.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
How the ultra-wealthy are using bitcoin to fund their yacht upgrades and Cannes trips
Cometh founder Jerome de Tychey is applying DeFi lending and borrowing on platforms like Aave, Morpho, and Uniswap to structures that help the ultra-wealthy secure loans against their massive crypto fortunes.
What to know:
- Wealthy investors who hold much of their fortune in crypto are increasingly turning to decentralized finance platforms to secure flexible credit lines without selling their digital assets.
- Firms like Cometh help family offices and other rich clients navigate complex DeFi tools, using assets such as bitcoin, ether and stablecoins to replicate traditional Lombard-style collateralized loans.
- DeFi loans can be faster and more anonymous than traditional bank credit but carry volatility and liquidation risks, and Cometh is also experimenting with applying DeFi strategies to traditional securities via ISIN-based tokenization.
Top Stories
