Starknet Reaches ‘Stage 1‘ Decentralization
In a significant development for the Ethereum scaling landscape, Starknet, a layer-2 scaling platform, has achieved ‘Stage 1‘ decentralization, a milestone outlined by Ethereum co-founder Vitalik Buterin. This achievement not only marks a key step in Starknet‘s roadmap but also propels it to the top of the zero-knowledge (ZK) rollup ecosystem in terms of total value locked.
Starknet‘s press release emphasizes that it has reached this stage according to Buterin’s framework, which he introduced in 2022. This framework, considered the ‘gold standard’ for evaluating Ethereum scaling solutions, defines three stages of decentralization, with Stage 1 representing a significant reduction in centralized oversight. The implementation of a security council and censorship-avoidance mechanisms, along with a fully functional validity proof system governed by smart contracts, have been instrumental in achieving this milestone. While the system still allows for intervention from the security council, Starknet‘s progress towards a more decentralized future is evident.
Starknet‘s Lead in the ZK-Rollup Arena
The achievement of Stage 1 decentralization has cemented Starknet‘s position as the largest ZK-rollup blockchain, surpassing ZKsync with a total value locked of $629 million, according to L2beat. This makes Starknet the fifth-largest layer-2 network overall, trailing behind the top four, which are all Optimistic rollup-based and have also achieved Stage 1 decentralization through fraud proofs.
The distinction between validity proofs, as employed by Starknet, and fraud proofs is crucial. Validity proofs assume a transaction is valid unless proven invalid with cryptographic evidence, whereas fraud proofs assume a transaction is invalid until proven valid. Starknet‘s reliance on validity proofs is a key differentiator in its approach to security and decentralization.
Looking Ahead: Stage 2 and Beyond
“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,” said Eli Ben-Sasson, co-founder and CEO of StarkWare, the developer behind Starknet.
The next major milestone for Starknet is Stage 2 decentralization, which represents complete autonomy and community governance. Only a small number of layer-2 platforms have reached this level, highlighting the significant challenge of achieving full decentralization. Starknet‘s commitment to reaching Stage 2, coupled with its focus on scaling on Bitcoin, signals its ambition to become a leading force in the broader blockchain ecosystem.
The Broader Context: Layer-2 Landscape
The layer-2 scaling landscape is rapidly evolving, with a growing number of solutions vying for market share. While Starknet‘s progress is noteworthy, it faces competition from established players like Base, the Coinbase layer-2 network. Base currently leads the sector with $14.7 billion in value locked, representing a market share of 33%. In comparison, Starknet‘s market share stands at 1.4%.
Despite the challenges, the overall layer-2 ecosystem is growing, with the total value secured onchain reaching $44.2 billion. While this figure has been boosted by recent gains in the price of Ether (ETH), it still represents a significant increase in adoption and confidence in layer-2 solutions.
Starknet‘s achievement of ‘Stage 1‘ decentralization is a positive sign for the future of ZK-rollups and Ethereum scaling. As Starknet continues its journey towards full decentralization, it will be interesting to see how it performs in the increasingly competitive layer-2 landscape.
