Starknet Achieves Decentralization Milestone
Starknet, an Ethereum layer-2 scaling solution, has achieved a significant decentralization milestone as defined by Vitalik Buterin, co-founder of Ethereum. This development marks Starknet as the largest zero-knowledge rollup (ZK-rollup) network based on total value locked (TVL).
Progression to Stage 1
According to a statement released by Starknet and reported by Cointelegraph, the platform has progressed to “Stage 1” of its decentralization process, a technique proposed by Buterin in 2022, characterizing a period of reduced oversight known as operating without “training wheels”.
The advancement to Stage 1 indicates that the network is functioning with enhanced autonomy, thanks in part to the establishment of a security council and mechanisms designed to avoid censorship. While the security council retains some authority, Starknet has integrated a robust validity proof system that is managed through smart contracts.
Starknet’s Leading Position
Currently, Starknet leads its peers as the only layer-2 ZK-rollup network at Stage 1, boasting a total value locked of approximately $629 million. This positions it just above ZKsync, which has a TVL of $610 million, as reported by L2beat. Among layer-2 networks, Starknet stands as the fifth-largest in terms of TVL, with the top four being based on Optimistic rollups and having achieved Stage 1 decentralization through a fraud proof approach.
Understanding Rollup Technologies
In the realm of rollup technologies, fraud proofs function by assuming transactions are invalid unless verified, whereas validity proofs require transactions to be validated through cryptographic proof. Eli Ben-Sasson, co-founder and CEO of StarkWare—Starknet’s developer—has expressed ambitions to eventually remove all limitations and reach a more advanced “Stage 2” decentralization. At this stage, the network would operate entirely independently and be governed by its community.
Currently, only three smaller layer-2 scaling solutions have attained this level of decentralization, as noted by L2beat.
Market Position Analysis
Buterin’s introduction of the “training wheels” system in 2022 outlined three stages to gauge the development progress of rollup projects on Ethereum.
In terms of market position, the Coinbase-powered layer-2 network Base is currently leading the industry, securing $14.7 billion in total value locked, which accounts for a substantial 33% of the market share. Starknet, on the other hand, commands a modest 1.4%. The total on-chain value within the layer-2 ecosystem is currently estimated at $44.2 billion, a figure that has surged recently in response to rising Ethereum values, yet it represents a 20% decline since the beginning of the year.
