Starknet, the Ethereum Layer-2 Scaling Solution, Has Hit a Major Milestone

Starknet, the Ethereum Layer-2 scaling solution, has hit a major milestone with decentralization while becoming the largest zero-knowledge rollup-based network

Starknet, the RISC-V open-source modular StarkNet layer-2 scaling solution, has reached a major milestone with Stage 1 decentralization.

As Ethereum (ETH) co-founder Vitalik Buterin explained back in 2022, Starknet has now achieved the ‘Stage 1’ decentralization where the network functions with limited oversight or training wheels. Starknet acknowledged that Buterin’s proposed framework was a “gold standard onchain tool for analyzing Ethereum scaling solutions”.

It further noted that they achieved this decentralization milestone by implementing changes such as building censorship-avoidance mechanisms and creating a security council. The system now operates with a fully functional validity proof mechanism governed by smart contracts, while still permitting intervention from a security council.

Starknet Leads ZK-Rollup Networks

Starknet is the first and only Layer-2 ZK-rollup network to achieve Stage 1 decentralization and it has also become the leading ZK-rollup blockchain with a total value locked (TVL) of $629 million, according to data from L2beat. This puts Starknet ahead of its closest ZK-rollup competitor, zkSync which currently holds $610 million in TVL.

In the broader Layer-2 ecosystem, Starknet ranks as the fifth-largest network by TVL. The top four networks which are all Optimistic rollup-based networks have already achieved Stage 1 decentralization using fraud proofs.

Fraud proofs operate on the principle that transactions are considered invalid until verified otherwise whereas validity proofs ensure transactions are deemed valid only when backed by cryptographic evidence. Speaking on the development, Eli Ben-Sasson, co-founder and CEO of StarkWare, said:

“Our goal is for the training wheels to come off completely and to reach Stage 2 decentralization on Ethereum, and simultaneously steam forward with our work on Bitcoin too.”

Stage 2 decentralization will be when the network becomes completely community-governed and autonomous. So far, only three small Layer-2 platforms have managed to reach this milestone.

Starknet Has a Long Way to Go

Coinbase's layer-2 network Base leads the sector with $14.7 billion in total value locked (TVL), capturing a dominant 33% market share. In comparison, Starknet holds a 1.4% share of the market. The layer-2 ecosystem collectively secures $44.2 billion in on-chain value.