Buy Starknet Token (STRK)

Starknet is a layer 2 scaling solution for the Ethereum blockchain. Its primary goal is to improve scalability and privacy by leveraging Zero-Knowledge Rollups (ZK Rollups). ZK Rollups allow Starknet to process thousands of transactions off-chain and then bundle them into a single transaction on the Ethereum blockchain. This reduces the transaction fees and network congestion that often accompany high transaction volumes on Ethereum, making decentralized applications (dApps) cheaper and more accessible.

Starknet uses Scalable Transparent ARgument of Knowledge (STARK) cryptographic proofs, which can verify transactions without exposing the underlying transaction data. STARK proofs are designed to be quantum-resistant and efficiently compress transaction data, which improves scalability and privacy.

A key benefit for Starknet users is the significant reduction in transaction fees and improvement in transaction efficiency. By bundling multiple transactions into a single Ethereum transaction, the load on the Ethereum network is reduced, resulting in lower fees and faster processing times for users. This makes Starknet particularly attractive for a wide range of applications, from DeFi protocols and NFT marketplaces to gaming and enterprise solutions.

Starknet uses its own native token, STRK, which has three primary functions: payment of transaction fees, participation in governance, and staking. Users can pay transaction fees in STRK. STRK holders can also participate in governance decisions that affect the Starknet protocol, such as upgrades and parameter adjustments. By staking STRK, users can contribute to network operations and receive rewards.

One of Starknet’s flagship products is StarkEx, a scaling solution that uses the same zk-STARK technology as Starknet. StarkEx is used by decentralized derivatives exchanges dYdX and Immutable X. However, StarkWare’s ultimate goal was to build a permissionless layer 2 network, resulting in the launch of Starknet’s genesis block in November 2021 and the launch of the STRK token in February 2024.

Who founded Starknet?

Starknet was developed by StarkWare Industries, an Israeli technology company founded in 2018 by Eli Ben-Sasson, Uri Kolodny, Michael Riabzev, and Alessandro Chiesa. Eli Ben-Sasson, co-founder of Zcash, was a professor at the Technion Israel Institute of Technology at the time of its founding. The company has received significant funding from investors such as Paradigm and Sequoia Capital, allowing it to develop one of the most advanced layer 2 solutions for Ethereum.

Both users and developers benefit from using Starknet. Here are the main applications and features of Starknet:

• Reducing transaction fees: Using zk-Rollups, transaction fees are significantly reduced by bundling thousands of transactions into a single transaction on the Ethereum blockchain.
• DeFi protocols: Starknet enables decentralized financial applications to scale, resulting in faster and cheaper transactions.
• NFT marketplaces: By efficiently processing transactions, NFT marketplaces can operate faster and cheaper.
• Gaming: Developers can build complex games that benefit from Starknet’s scalability and lower costs.
• Enterprise solutions: Businesses can leverage Starknet’s scalable and secure environment for their blockchain-based applications.

Starknet uses Scalable Transparent ARgument of Knowledge (STARK) cryptographic proofs to verify transactions without revealing the underlying data. These STARK proofs are quantum-resistant and offer efficient data compression, making them extra secure and scalable.

Sequencers and provers

The Starknet network consists of two main players: sequencers and provers. Transactions are first processed and validated by sequencers, which function as advanced Ethereum nodes. These sequencers place transactions in a queue (mempool) and organize them into blocks. The proposed blocks are then approved by other sequencers. Once approved, these blocks are sent to the provers.

Provers are responsible for further ensuring the validity of transactions in a block. They process blocks in parallel, which speeds up the process, and create an Execution Trace and a State Diff. The Execution Trace records the steps of the transaction execution, while the State Diff records the changes in the state of Starknet. This data is then used to generate a STARK proof.

Publishing to the Ethereum Blockchain

The STARK proof and State Diff are sent to the Ethereum mainnet as a single transaction. This transaction is accepted by an Ethereum node and unpacked to find the proof and State Diff. The Verifier smart contract on Ethereum checks the validity of the proof and confirms the presence of the State Diff. The status of Starknet on Ethereum is then updated. The rest of the process follows normal Ethereum procedures: the transaction is added to a block and then validated and finalized by the network.

Starknet's scaling solution allows thousands of transactions to be bundled into a single Ethereum transaction, resulting in lower fees and faster processing times.

Starknet's STRK token has three primary functions: payment of transaction fees, participation in governance, and staking. Users can pay transaction fees on the Starknet network with STRK, allowing for lower transaction fees. Additionally, STRK holders can participate in governance decisions on the Starknet protocol. This is done by wrapping STRK in vSTRK (voting STRK), which allows users to vote or nominate another user to vote on their behalf. This model ensures that the community has influence on the development and direction of the network.

The STRK token is also intended for use in a Proof-of-Stake (PoS) model, although this is still in development. Staking STRK tokens will reward users and contribute to the security and decentralization of the network. At launch, 10 billion STRK tokens were created. These tokens will be released over time and distributed to the development team, investors, and the broader community, among others.

Currently, staking of STRK tokens within Starknet itself is still in development. Starknet is working on a Proof-of-Stake (PoS) model that should enable staking within the network in the future. This model will allow users to stake their STRK to contribute to the security and decentralization of the network, while earning rewards.

While the PoS system is still in development, you can already stake STRK tokens on external DeFi platforms. You can move your STRK to these platforms and participate in their staking programs. This way, you can already earn rewards while you wait for the PoS system to launch within Starknet itself.

The following unique and innovative features make Starknet a unique player in the blockchain space:

• ZK-STARK: These cryptographic proofs verify transactions without exposing the underlying data, providing increased privacy and scalability.
• Quantum resistance: STARK proofs are designed to withstand attacks by future quantum computers, ensuring the sustainability of the network.
• Low transaction fees: By leveraging ZK-Rollups, Starknet can process thousands of transactions off-chain and bundle them into a single Ethereum transaction, significantly reducing fees.
• Permissionless network: Developers can deploy smart contracts without permission, encouraging innovation and diversity within the ecosystem.
• Ethereum security: Starknet benefits from the robust security of the Ethereum blockchain while providing scalability solutions.
• Broad applications: From DeFi protocols and NFT marketplaces to gaming and enterprise solutions, Starknet is flexible and versatile in its applications.

At Bitvavo you can buy STRK. Our platform is suitable for both novice and experienced traders. Follow these steps to buy STRK tokens via our website or app:

1. Log in to your Bitvavo account or create a new account.
2. Deposit money into your account by clicking "Deposit".
3. Go to the Starknet (STRK) purchase page.
4. Enter the amount in euros you want to spend or the number of STRK tokens you wish to purchase, and click "Buy".

After purchase, STRK tokens are automatically added to your Bitvavo account, where you can easily manage and trade them. Selling STRK tokens is just as easy, allowing you to quickly respond to market changes.

You can safely store your STRK tokens in your Bitvavo account. Bitvavo stores the majority of assets in cold storage, which means they are stored offline for extra security. For higher security of your account, we recommend enabling two-factor authentication (2FA).

Additionally, you can store STRK tokens in various software and hardware wallets. After purchase, you can easily transfer the STRK tokens to an external wallet by linking the wallet address to your Bitvavo account. This gives you full control over your digital assets and increases the security of your cryptocurrencies.