Have you heard of Starknet claiming to decrease gas fees on Ethereum 100X lower?

Yet another Layer 2 solution promising to minimize the transaction fees on Ethereum blockchain

It seems like the woes of developers and users of applications based on the Ethereum blockchain network in paying high transaction fees may end soon. High transaction fees have been a concern on the Ethereum network apart from its transaction speed. Out of many different solutions, layer-2 innovations have also begun in the same direction. StarkNet is the latest form of an innovative step that aims to bring down the transaction fees up to 100X. 

StarkNet is the creation of an Israel based software development company Starkware. Including all the funding, the layer-2 solution raised 173 million. However, Starknet is neither the first nor the only one to come up with the idea of a Layer-2 solution. Many others, including Polygon, Optimism and Arbitrum are also indulged in creating and developing similar structures for a couple of years. 

Layer-2 solutions primarily bring the ability to process big batches of transactions other than the core blockchain of Ethereum and then, after processing, write them in the record of activities back on Ethereum itself. In a nutshell, it’s the process that gets transactions done with high speed and at low fees, along with using the record-keeping and security of the Ethereum network. 

So many other developers and projects out there, but still StarkNet came out to be the buzzword out of all. The reason behind it is it relies on a cryptography form known as Zero-knowledge proofs, also called ZK-proof in crypto space. The system using ZK or Zero-knowledge proof can prove its transaction to be true without disclosing other private information. For instance, as you want to show your driving license only to confirm your age but at the same time don’t want to reveal your identity and residential address, Zero-knowledge proof works just like that. 

On top of privacy and minimum transaction fees, ZK rollups’ speed is too high compared to optimistic rollups that sometimes take a week to complete their tasks.

Starke has been adopted by Alchemy, a blockchain API provider giant. The Layer-2 solution will be integrated with Alchemy and provide background support to a huge Web 3, ranging from traditional banks to crypto exchanges. Clients and users of Alchemy will now be able to build services that would low cost transaction processes because of StarkNet tools integration. 

Alchemy said that utilization of StarkNet’s Validity and ZK-rollups solves core Web3 problems effectively. Validity increases the scalability of transactions by bundling them together off-chain and then verifying them on the blockchain, which takes a fraction of traditional cost. 

An early adopter of StarkNet other than Alchemy is an immutable, NFT gaming startup that raised about $200 million in funding. It is also looking for StarkNet to make its heavy transaction operation more affordable. 

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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