Starknet is a layer-2 scaling solution for Ethereum that utilizes zero-knowledge rollups (ZK-rollups) to enhance the scalability and efficiency of decentralised applications (dApps). It processes transactions off-chain and generates cryptographic proofs, significantly increasing transaction throughput while maintaining the security of the Ethereum blockchain.
Starknet works by bundling transactions into an off-chain computed STARK proof, which is then submitted to Ethereum as a single transaction. This results in significantly higher throughput, faster processing times, and much lower costs, all while retaining the robust security of the Ethereum settlement layer.
Starknet offers a versatile platform for various use cases, including DeFi platforms, gaming, NFTs, and more. It's utilised in projects like dYdX for decentralised exchanges, Immutable X for NFT platforms, and can also be applied in sectors like healthcare for managing medical data and in supply chain monitoring.
Starknet's history began with the founding of StarkWare Industries in 2018. Key milestones include the release of the first STARK proof system in 2019, the launch of StarkEx in 2020, and StarkNet in 2021. By 2022, the network had processed over 1 billion transactions, showcasing its scalability. StarkWare has also raised significant funding, indicating strong support for its growth.