The Starkware ecosystem is based on STARK Proof (Scalable, Transparent ARgument Of Knowledge) which allows information verification. Starkware is the parent company of these ZK-rollup scalability solutions (ZK-snarks). SNARKS allow you to process large calculations, generate a proof for their correctness and then perform verification.
ZK (Zero Knowledge) proofs are also great for privacy because instead of showing the details of a transaction, you only see proof that the transaction took place. You think of these operations:
7+7= 14
1+1=2
You will only see the result 14 and the 2 represented by the code A1. When you see A1, you can show that the other transactions are 7+7= 14 and 1+1= 2, but you won't see the single components that make up proof A1 (this means Zero Knowledge: show the proof but not the steps). You can show someone test "A1" and they can know that a result is valid without seeing the information or data inside the test. So A1 is all that is known about the transaction but the individual parts of the transaction are not known. Proof protects private inputs without revealing other information. Evidence on blockchain networks boils down to three components: the statement, the person proving the statement, and the person verifying the statement.
The type of ZK used by StarkWare is called STARK and these play a key role in the scalability of the blockchain by allowing calculations to be performed off-chain (where it is cheaper), leaving only the verification, which requires a fraction of the calculation, to be performed on -chain. In other words, by performing very few computations on-chain, the validator verifies the integrity of a much larger computation performed off-chain. Layer 2s using STARK Proof pool and compute thousands of transactions (this also saves bandwidth), then verify their validity on-chain with a single proof. The cost of the on-chain process is split across all transactions in the batch. The system exploits the security of the Ethereum blockchain and by carrying out the most expensive off-chain operations it allows you to spend few fees. One downside is that this is "Closed Source" code.
Unlike SNARKS (used by other layer 2 ZK, like Polygon), STARK also guarantees post-quantum security. Quantum security refers to a resistance that cannot be broken by attacks from quantum computers. Quantum computers are smarter and faster than classical computers, capable of performing cryptographic calculations in minutes that would take hundreds of thousands of years for classical computers. The speed of attacks that quantum computers are capable of is difficult to estimate. Even if they are not widespread today they could be a future threat, however, even once widespread, STARKs are considered safe from "post-quantum" attacks. A further difference with other layer 2 such as the Optimistic Rollups (Arbitrum, Optimism) is that these are of the "optimistic" type, therefore they assume that a transaction is always "legit". Verifications are performed only in case of off-chain withdrawals. StarkWare provides two solutions to scale Ethereum with STARK: StarkEx and StarkNet.
STARKEX
StarkEx is a framework for building scalable solutions that allows low-cost off-chain computation. It is used by Immutable X (NFT market), Sorare (fantasy football, fantasy baseball and fantasy basketball with NFT), dYdX (decentralized exchange) and Celer. A STARK proof, which certifies the correctness of the execution, is generated off-chain. That proof can include up to 500,000 transactions. The proof is then sent to the STARK verifier to be accepted on-chain. Verification covers all transactions bundled into one, for significantly less gas cost than you would pay on Ethereum.
STARKNET
StarkNet is a permissionless layer 2 (ZK) where any user or developer can deploy smart contracts. It was created by Israeli developers, including a founding member of ZeroCash. Within the StarkNet ecosystem, your contract can interoperate with any other contract deployed on StarkNet, allowing for the creation of composable protocols. StarkNet contracts can also interact with Ethereum contracts by passing asynchronous messages. StarkNet contracts can also interact with Ethereum contracts by passing asynchronous messages. Unlike StarkEx, where applications are responsible for sending transactions, StarkNet sequences transactions in batches and sends them to be processed and verified by StarkWare sequencers. The rollup state is written to Ethereum together with the STARK evidence. StarkNet may be better suited for a protocol that requires synchronous interaction with other protocols. It currently does not support EVM.
POSSIBLE AIRDROP
StarkWare has already announced that it will launch its token in Q1 2023. These scalability solutions (StarkEx, StarkWare) will be added to:
-Optimistic Rollup (Arbitrum, Optimism)
-ZK Rollup (ZKsynch)
StarkWare will have its own token and has already announced that 9% will go to the community. The OP token airdrop (Optimism Layer 2) rewarded early adopters with as little as $1,500 up to $20,000. Basically when you use a chain or a dapp (without a native token), if the native token is launched...the community (early adopters) is rewarded. If you have used Sorare (won some auctions) or the Immutable X market you may be eligible. If you haven't used these dapps you might still be in time. StarkWare will have the Stark token but StarkEx and StarkNet could also have their own token in the future to further decentralize.
As for StarkEx, you could use Sorare (through Metamask and try to win some players in the auction, spending a few dollars) or you could buy some NFT on the Immutable X market. For StarkNet you should download the Argent X wallet and interact with some dapps.
For Sorare, I made a lot of guides on how to play that you can find here:
- How Sorare Works: The New Era Of Fantasy Football (NFT)
- MLB Comes to Sorare: Rules, Rewards and Best Players (FantasyBaseball)
- My First Month On Sorare MLB: Prizes And Roster
- NBA Comes To Sorare: How To Play And Trade NFT
Obviously this is not investment advice, you need to do your research (DYOR).
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