Thread by @mt_1466

1/ Yesterday, I highlighted zkSync.

So it only makes sense that I do the same for @StarkWareLtd and their #Ethereum rollup solutions #L222 #StarkEx and #StarkNet

Another deep-dive thread into one of the projects changing the scaling world 🧵...

2/ First, again, some high-level Pros and Cons
Pros with using Starkware products

- Increased TPS compared to ORs (~9,000+ TPS on Ropsten testnet)
- Faster withdrawals (no challenge period), enabling better capital efficiency and liquidity
- #Validiums (discussed below)

3/ Cons

- Developer UX and porting of dApps from L1 to #L2 is more challenging than OR options
- #Cairo language less popular among developers = less talent pool to build on Starkware
- With Starkware's #Validium option, there's a technical challenge in solving DA problem.

4/ @StarkWare is a ZK-rollup company that pioneered zero-knowledge-based rollups in 2018, launched #StarkEx in 2020, and recently released #StarkNet alpha in November 2021.

That's a lot of "stark" names. What's the difference?
@ukolodny @YaelDoweck

5/ #StarkEx supports the ability for smart contracts (SC) to run any arbitrary logic for specific use cases like trading and NFTs while #StarkNet enables more general use cases.

@sassal0x @antiprosynth

6/ StarkEx is the first iteration “scalability engine” from Starkware that now supports two versions: a zkRollup mode and a validium mode. Validiums can be custom-tailored to offer superior performance for specific dApps and use cases like @deversifi , @Immutable $IMX, & @Sorare

7/ #StarkNet followed & is the first ZK-rollup to feature general smart contracts on a fully composable network. Composability refers to the ability for applications to coordinate, build on top of one another, and interconnect—something for which StarkEx is not designed.
@0xs34n

8/ Under the hood, StarkNet compresses thousands of transactions into a single validity proof called ‘#STARKs’ (Scalable Transparent Argument of Knowledge), co-invented by Starkware President @EliBenSasson , that is submitted to the #Ethereum L1.

9/ STARK technology has two primary advantages over SNARKs
- It doesn't require an initial trusted setup (like in zkSync v1)
-they are ~10x faster to compute than SNARKs.

@Starknet_Intern @odin_free @HenriLieutaud

10/ Because the computational effort necessary to verify STARK proofs is significantly less than actually proving the computation, StarkNet can increase Ethereum scalability by orders of magnitude.
@Swagtimus

11/ StarkNet’s L2 sequencer will execute every transaction and update the state to the Ethereum mainnet periodically. It's important to note that StarkNet's transaction finality is tied to L1, meaning the L2 node must validate StarkNet and Ethereum simultaneously.
@epolynya

12/ StarkNet introduces a solution involving checkpoints to the Ethereum mainnet, enabling it to achieve effective finality on the rollup side very quickly. Therefore, all L2 nodes incorporate an L1 full node.
@08351ty

13/ Since state transitions are “STARK-approved” by the sequencer, it is impossible for fraudulent txs to be accepted on L1 Ethereum. This removes the need for any “challenge” period that exists in ORs. All the data needed to reconstruct the full state is published on-chain.

14/ Validiums
Validium's mechanism is nearly identical to a ZK-rollup, only diff being that DA in a ZK-rollup is on-chain, while Validium keeps it off-chain. This means ZKs post data on the L1 while Validiums post validity proofs on-chain, but the data remain on separate network

15/ This enables Validium to achieve considerably higher throughput than ZKRU or ORs. By sending data off-chain rather than on-chain, it reduces the cost of each transaction and increases the transactions per second (TPS).
@j0hnwang

16/ The trade-off for storing data off-chain is that it requires trust in the 3rd party who could prevent users from accessing their balances. Starkware solves for this with a Data Availability Committee, a group of 8 members that have their own copy of the transactions made.

17/ They are also required to maintain this data by making it available at all times. If an operator prevents a user from accessing their funds, a committee member can override them to confirm their request if it is valid.

18/ Multiple projects launched Validiums using Starkware’s StarkEx platform, including:

#DeversiFi DEX - June 2020
#immutableX - April 2021
@dydxprotocol DEX - April 2021
@Sorare Fantasy Soccer - July 2021

@zkRollupsXYZ @starkwhale

19/ Roadmap
StarkNet utilizes a new programming language developed by the team at Starkware called #Cairo . It’s a language for programming STARKs that achieves Turing-completeness.

@HaymanLiron @bkiepuszewski

20/ Cairo enables just one verifier to use a single proof to confirm the integrity of many different program executions. This has the effect of amortizing costs across separate dApps, e.g. a single proof that includes both #DYDX trades and #SoRare transactions.
@GuthL

21/ StarkNet's rollout will follow a similar path to that of Optimism (OR): Launch network with a single sequencer and a whitelist of dApps early on to control the launch and limit any risks. A list of projects building on StarkNet can be found here.
starkware.notion.site/Projects-Build…

22/ Ultimately, Starkware hopes to grow the ecosystem into a Starknet “Universe” while also decentralizing the network, nodes, and infrastructure.

23/ Starkware & #OKEx announced in Dec 2021 a partnership designed to enable easy onboarding to StarkNet (~Q2 2022)

@argentHQ , an Ethereum #SmartContract wallet, also announced ‘ArgentX’, the first wallet for StarkNet

#Aave currently has a gov proposal to launch on StarkNet

24/ And that wraps up the Starkware ecosystem!

We glossed over a lot including the basics of rollups and ZK tech. If you need a refresher, all of that plus more on #L222 , #ETH scaling, #TheMerge, and more can be found here
mirror.xyz/0x3D5FE39342e6…

25/ Tried tagging people inside the thread but for those that couldn't fit, a thanks to
@prateek_jain321 @pseudotheos @iamDCinvestor @DeFi_Dad @VitalikButerin @cburniske @kaiynne @Cooopahtroopa @litocoen @Darrenlautf @Daryllautk @econoar @RyanBerckmans @RyanSAdams @TrustlessState