Key Notes
- Starknet has become the first Layer-2 ZK-rollup network to reach Stage 1 decentralization.
- Starknet aims for full Stage 2 decentralization, where the network becomes fully community-governed and autonomous.
- While Starknet marks a significant milestone, it holds just a 1.4% market share compared to Coinbase’s Base network.
Starknet, the Ethereum Layer-2 scaling solution, has hit a major milestone with decentralization while becoming the largest zero-knowledge rollup-based network in terms of total value locked (TVL).
As Ethereum
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co-founder Vitalik Buterin explained back in 2022, Starknet has now achieved the “Stage 1” decentralization wherein the network functions with a 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 by Achieving Stage 1 Decentralization
Starknet has become the first and only Layer-2 ZK-rollup network to achieve Stage 1 decentralization, establishing itself as 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, trailing four Optimistic rollup-based networks. These top four networks also achieved Stage 1 decentralization but utilized fraud proofs to do so. Starknet’s milestone shows its growing significance in the rollup ecosystem and its strong appeal among users and developers alike.
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 attain 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% market share. The layer-2 ecosystem collectively secures $44.2 billion in on-chain value.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
