8 months ago
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Starknet is now the sixth-largest Layer-2 network by Total Value Locked (TVL) with $1.4 billion.
Starknet, a decentralized Layer 2 validity rollup, built to allow Ethereum to scale recently announced the inclusion of parallel execution in v0.13.2, scheduled for release in the second quarter of this year under its 2024 roadmap.
The Role of Parallel Execution to Starknet
Presently, Starknet’s sequencer, a vital component responsible for structuring and batching off-chain transactions before submitting them to the Ethereum blockchain, executes them in order.
However, with parallel execution, Starknet will be able to execute numerous transactions at the same time, thus increasing efficiency and throughput. Notably, a sequencer is a Layer-2 network component that combines transactions and sends them to the main Ethereum network for settlement.
Eli Ben-Sasson, CEO of StarkWare and a board member of the Starknet Foundation compared parallel execution to multitasking for rollups. “This will address a bottleneck, and keep transactions flowing faster and more efficiently. It’s like a subway station with one entrance point tackling congestion by opening more entrances,” Ben-Sasson emphasized.
Furthermore, as part of Ethereum’s Dencun upgrade, Starknet now supports EIP-4844, also known as proto-danksharding, which improves its performance even further. Following this upgrade, renowned wallet provider Argent reported a substantial reduction in average transaction fees on Starknet, which fell to $0.04 from over $6.80 pre-upgrade.
Beyond parallel execution, Starknet’s roadmap includes the integration of Cairo Native into the sequencer, which is expected for v0.13.3 in Q3, in partnership with blockchain research firm Nethermind. This integration is expected to improve transaction processing, lower latency, and increase throughput by allowing the sequencer to run directly on standard hardware architecture.
Looking ahead to version 0.14.0 in Q4, Starknet intends to continue cutting fees through numerous techniques. These include introducing volition for hybrid data storage, using “applicative recursion” to consolidate data storage evidence, and looking into data availability compression to reduce Starknet’s data footprint on Ethereum.
Starknet’s Market Position
Starknet is now the sixth-largest Layer-2 network by Total Value Locked (TVL) with $1.4 billion, according to L2Beat statistics. Despite following behind Arbitrum One and OP Mainnet in TVL, Starknet is a key player in ZK Rollups, which are recognized for superior speed settlements using zero-knowledge cryptography.
The introduction of the STRK token, along with an airdrop, has greatly enhanced Starknet’s market share. The token’s KuCoin trading performance, which saw it start at $0.50 and rise to $5.00, demonstrates both market expectation and faith in the Starknet ecosystem. Notable investments have also been made by market participants including Amber Group, Wintermute, and Flow Traders, which supports the token’s legitimacy and potential.
However, the Starknet community has expressed worries about how the airdrop was carried out. Some users were dissatisfied with distribution transparency, noting issues receiving token dividends despite large contributions to the network. Despite the concerns, the commitment to building marks a strategic way for Starknet to return value to every stakeholder in the long term.
