What is StarkNet (STRK)? – Bitfinex blog

16 Feb What is StarkNet (STRK)?

StarkNet, developed by StarkWare, represents a state-of-the-art Layer 2 scaling solution designed to enhance the scalability and privacy of blockchain networks, with a particular focus on Ethereum. By taking advantage of Zero-Knowledge Rollups (ZK-Rollups), StarkNet enables the processing of thousands of transactions off-chain before bundling them into a single transaction on the Ethereum mainnet. This approach significantly reduces the gas fees and network congestion typically associated with high transaction volumes on Ethereum, making blockchain applications more efficient and accessible to a wider audience.

One of StarkNet’s core technologies is STARK (Scalable Transparent ARgument of Knowledge), a type of cryptographic proof that allows for the verification of transactions without revealing any underlying transaction data. This aims to ensure a high degree of privacy and security for users. STARK proofs are designed to optimise quantum resistance and the ability to compress transaction data efficiently, to enhance its  scalability, and future-proofing the network against potential advancements in quantum computing.

StarkNet operates as a permissionless decentralised ZK-Rollup network, enabling developers to deploy smart contracts that can execute complex computations off-chain while still ensuring the integrity and security of the data when reconciled with the Ethereum mainnet. This environment supports the creation of Decentralised Applications (DApps) that can scale effectively while benefiting from Ethereum’s robust security model. As a result, StarkNet is set up to support a wide range of applications, from Decentralised Finance (DeFi) protocols and Non Fungible Token (NFT) marketplaces to gaming and enterprise solutions, without the typical limitations associated with blockchain scalability.

In addition to enhancing scalability and privacy, StarkNet also aims to foster a more inclusive blockchain ecosystem. By dramatically lowering transaction costs and increasing throughput, StarkNet hopes to make blockchain technology more accessible to individuals and businesses worldwide. This democratisation of access is crucial for the widespread adoption of blockchain technology and the realisation of its full potential in enabling open, transparent, and efficient digital economies. 

What is the STRK Token?

The StarkNet Provisions Program marks a milestone in StarkNet’s journey toward decentralisation by introducing the StarkNet Token (STRK) to its community. With an initial allocation of more than 700 million STRK to nearly 1.3 million addresses, the program is part of a broader effort to distribute 1.8 billion STRK (18% of the total supply) dedicated to the community. This wide distribution reflects StarkNet’s commitment to engaging its diverse user base, including developers, users, and contributors across various sectors, in the network’s governance and operation.

STRK is used as a payment option for transaction fees on the StarkNet network. This functionality allows users to choose between paying fees in STRK or ETH, offering flexibility and potentially reducing costs for network interactions. By enabling STRK as a means to cover transaction fees, StarkNet aims to streamline user experience and encourage wider adoption of its platform.

Holding STRK grants users the right to participate in governance decisions affecting the StarkNet protocol. This includes votes on various issues that shape the network’s development, policy, and future direction. Through governance, STRK holders can influence decisions regarding upgrades, parameter adjustments, and the implementation of new features, ensuring that the network evolves in a way that reflects the community’s needs and priorities.

STRK will be used within a proof-of-stake (PoS) model that underpins the network’s security and decentralisation. By staking STRK, users can support the network’s operation, contribute to its security, and in return, receive rewards. This staking mechanism is designed to select among a decentralised network of sequencers, ensuring that StarkNet remains secure, efficient, and resistant to centralization.

STRK Tokenomics

How to buy STRK with crypto

1. Log in to your Bitfinex account or sign up to create one.

2. Go to the Deposit page.

3. In the Cryptocurrencies section, choose the crypto you plan to buy STRK with and generate a deposit address on the Exchange wallet.

4. Send the crypto to the generated deposit address.

5. Once the funds arrive in your wallet, you can trade them for STRK. Learn how to trade on Bitfinex here.

How to buy STRK with fiat

1. Log in to your Bitfinex account or sign up to create one.

2. You need to get full verification to be able to deposit fiat to your Bitfinex account. Learn about different verification levels here.

3. On the Deposit page, under the Bank Wire menu, choose the fiat currency of your deposit. There’s a minimum amount for fiat deposits on Bitfinex; learn more here.

4. Check your Bitfinex registered email for the wire details.

5. Send the funds.

6. Once the funds arrive in your wallet, you can use them to buy STRK.

Also, we have Bitfinex on mobile, so you can easily buy STRK currency while on-the-go.

[AppStore]  [Google Play]

STRK Community Channels

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