Starknet enters decentralization stage to lock in value beyond ZK-rollups

Author: Martin Young, CoinTelegraph; Translated by: Wuzhu, Golden Finance

Ethereum Layer-2 expansion platform Starknet has reached the decentralization milestone set by Ethereum co-founder Vitalik Buterin, and has now become a Rollup network based on zero-knowledge proof (calculated by total locked value).

Starknet said in a press release that it has entered a “phase one” decentralization phase under the framework developed by Buterin in 2022, meaning the network operates under limited regulation or “assistance.”

Starknet added that the framework is “a gold standard on-chain tool for analyzing Ethereum expansion solutions” and said it has achieved this milestone through changes such as the creation of security committees and evasion mechanisms.

While the system still allows for security committee intervention, it has implemented a fully functional proof of effectiveness system managed by smart contracts.

Starknet is currently the only Layer-2 ZK-rollup network to reach its first phase and has grown into the largest ZK-rollup blockchain, with a total lock value of $629 million, slightly higher than ZKsync’s $610 million, according to L2beat.

Starknet is the fifth largest Layer-2 network calculated by locked value. The top four Layer-2 networks are all based on Optimistic Rollup and have all achieved the first phase of decentralization through false proofs.

Layer-2 networks are ranked by total lock value. Source: L2beat

The fraudulent proof assumes that the transaction is invalid before it is proven to be valid, while the validity proof assumes that the transaction is valid only if it is proven to be valid through cryptographic evidence.

“Our goal is to get rid of the training wheels completely, achieve phase 2 decentralization on Ethereum, and also push our work forward in Bitcoin,” said Eli Ben-Sasson, co-founder and CEO of StarkWare (the developer of Starknet).

The “second phase” decentralization refers to the stage in which the network is completely autonomous and governed by the community. According to L2beat, only three small Layer-2 expansion platforms have reached this stage.

Buterin proposed the concept of a "training wheel" in 2022, namely, the three stages of the Ethereum expansion Rollup project in different development stages.

Base leads the Layer-2 ecosystem

Coinbase Layer-2 Network Base is an industry leader in locking value, with locking value of US$14.7 billion and a market share of 33%. By comparison, Starknet has a market share of 1.4%.

The total value of assets on-chain in the Layer-2 ecosystem is US$44.2 billion. This figure has risen recently as ETH value rises, but has fallen 20% so far this year.