What is Starknet (STRK)?

Deep Dive

1. Purpose & Technology

Starknet is a ZK-Rollup (Validity Rollup) that bundles thousands of transactions off-chain, generates a cryptographic proof (using STARKs), and submits it to Ethereum for verification. This approach reduces costs by ~100x compared to Ethereum L1 while maintaining security. Its core innovation, Cairo, is a Turing-complete programming language designed for creating provable smart contracts, enabling complex decentralized apps (dApps) to scale efficiently.

2. Tokenomics & Governance

STRK serves three primary functions:
- Fees: Since v0.13.0, users can pay transaction fees in STRK (previously only ETH).
- Staking: Secures the network via a proof-of-stake mechanism, with 420M STRK (~11% of supply) staked as of August 2025 (Starknet Foundation).
- Governance: Holders delegate voting power via vSTRK to shape protocol upgrades (e.g., Bitcoin staking integration via SNIP-31).

3. Ecosystem & Use Cases

Starknet hosts 200+ dApps, including:
- DeFi: Ekubo (DEX), Vesu (lending), Extended (100x leverage perps).
- Infrastructure: StarkGate (cross-chain bridge), Lava RPC (decentralized node access).
- Bitcoin Integration: Supports WBTC, tBTC, and LBTC for DeFi interoperability.

Conclusion

Starknet is a high-throughput Ethereum Layer 2 combining ZK-proof scalability with a developer-friendly Cairo ecosystem and progressive decentralization. Its focus on cross-chain utility (e.g., Bitcoin integration) and modular architecture positions it as a bridge between major blockchain ecosystems. Could its emphasis on Bitcoin compatibility redefine multi-chain DeFi?