Understanding Starknet (STRK): How Does it Change Ethereum Transactions?

Starknet could be the solution for Ethereum's slow transactions and high fees.

Starknet is a new layer added on Ethereum to speed up transactions and reduce costs. It also introduces its own token, STRK, which helps pay the network’s fees. It's also a key part of running the network and having a say in its future. 

This article explains how Starknet and STRK can make dealing with blockchain seamless and more efficient.

Understanding Starknet

Starknet is a Layer 2 network designed to work alongside the Ethereum blockchain. It helps Ethereum handle more transactions quickly and cheaply while maintaining high security. Starknet does this using the zero-knowledge rollup technique, which bundles many transactions into one to be processed.

At the core of Starknet are two main parts: sequencers and provers. Sequencers gather transactions from users, sort them, and combine them into groups. These grouped transactions are then turned into blocks. 

Provers take these blocks and double-check them, ensuring everything is done correctly. They then create a mathematical proof, which is sent back to Ethereum for final verification. This process helps Starknet ensure that all transactions are valid and secure.

Starknet writes its software using the Cairo programming language, which is tailored specifically for this type of project. Its structure is designed to eventually become fully decentralized. 

This setup aims to make Starknet a robust and scalable solution for Ethereum, ensuring it can support a larger volume of transactions without bogging down.

How Does Starknet Perform Transactions?

A Starknet transaction undergoes a systematic validation and execution process. Initially, the transaction is submitted to a gateway, where it's registered as RECEIVED. 

The gateway performs preliminary checks for validity, such as verifying the transaction's structure and the account's balance against the transaction fee. If these checks fail, the transaction is discarded.

Provided the transaction passes gateway validation, it advances to the sequencer. The sequencer conducts its own validation to ensure the transaction's continued viability, repeating the checks performed by the gateway.

Once validated by the sequencer, the transaction is executed and the network's state is affected. If an issue arises during execution, the transaction status is marked as REVERTED, yet it is still included in the block.

The final phase involves the prover, which computes a cryptographic proof for the block containing the transaction using Starknet's operating system. 

This proof is then sent to an L1 verifier on the Ethereum blockchain. Upon successful verification by the L1 verifier, the Starknet transaction is fully accepted, and the blockchain's state is updated to reflect it.

What is STRK Token?

The STRK token is a digital asset used within the Starknet network. It plays several crucial roles in ensuring that the network runs smoothly and effectively. 

• First, STRK is used to pay transaction fees on Starknet. Initially, these fees were paid in Ethereum's currency, ether, but now they can also be paid using STRK. The transaction fees help manage the network's operating costs and cover necessary costs on Ethereum's network.
• Another key function of STRK is staking. This involves locking up tokens as a security measure to help maintain the network's operation and protect it against misuse. Staking STRK will be essential for those providing various services on Starknet, like transaction sequencing or data availability. This will help ensure these contributors are committed and trustworthy.
• Lastly, STRK has a governance role. Token holders can vote on proposals affecting Starknet’s future, such as upgrades or changes to the protocol. This voting can be direct or through delegates. Governance ensures that those invested in Starknet have a say in its direction and operation.

Here are some STRK coin metrics and official links:

• Current STRK Token Price: 0.6466 USD
• Total Market Cap: 6.45 Billion USD
• Circulating Market Cap: 943.11 Million USD
• Total Supply: 10 Billion STRK Tokens
• Website: https://www.starknet.io/
• Whitepaper: https://docs.starknet.io/
• Socials: X (Twitter), Discord
• Block Explorer: https://etherscan.io/

STRK Tokenomics

StarkWare created and launched ten billion Starknet tokens, with the minting process completed on November 30, 2022. These tokens are distributed between different groups within Starknet’s community.

Distribution details include:

• Early Contributors hold 20.04% of the tokens, with a plan to release them gradually following a set schedule.
• Investors are allocated 18.17% of the tokens, which are also released over time based on a schedule.
• StarkWare itself keeps 10.76% of the tokens for operational costs and services on Starknet.
• Grants, including those for Development Partners, make up 12.93% of the tokens to support the development and maintenance of the Starknet protocol.
• Community Provisions and Community Rebates each account for 9% of the tokens, which support community contributors and offer rebates for transitioning from Ethereum to Starknet, respectively.
• The Starknet Foundation controls 10% of the tokens for strategic ecosystem activities and another 8.10% for its treasury to fund future operations and initiatives.
• Finally, 2% of the tokens are set aside for donations to entities like universities and NGOs.

The lock-up schedule for tokens assigned to Investors and Early Contributors is detailed as follows:

• From April 15, 2024, to March 15, 2025, up to 0.64% of the total tokens (64 million) will be released monthly, totalling 7.68% (768 million) by the end of this period.
• From April 15, 2025, to March 15, 2027, up to 1.27% of the tokens (127 million) will be released monthly, and by the end of the schedule, up to 30.48% (3.048 billion tokens).

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How to Buy and Trade STRK Tokens?

CoinEx is a global cryptocurrency exchange, trusted by 6+ millions of users worldwide with 100% reserve. With 1,100+ tokens supported, including STRK, users can now trade easily and seamlessly.

To purchase and trade STRK tokens on CoinEx, please follow these instructions:

• Register on CoinEx: Begin by setting up an account on CoinEx.
• Fund Your Account: After registering, log in to CoinEx and deposit a supported currency into your account.
• Visit STRK Token Listing Page: Once your account is funded, locate the STRK token on CoinEx by using the search function to find its trading pairs.
• Choose a Trading Pair: Select the STRK/USDT trading pair, to exchange STRK tokens for USDT (Tether).
• Input Trade Quantity: Determine the quantity of STRK tokens you want to buy and enter this figure. The interface will calculate the cost based on the current market price.
• Confirm and Place Your Order: Confirm the details are correct and place your order to purchase STRK tokens.

By following these steps, you can easily trade STRK on CoinEx.