StarkNet (STRK)

Decentralized Finance (DeFi)

StarkNet enables faster and cheaper transactions for lending, borrowing, and trading on Ethereum-based DeFi platforms.

Gaming

It supports in-game transactions and asset ownership with low fees, making blockchain games more accessible and efficient.

Non-Fungible Tokens (NFTs)

StarkNet facilitates minting, buying, and selling NFTs at a lower cost, improving user experience in digital art and collectibles.

Scalability and Efficiency

By processing transactions off-chain and settling them on Ethereum, StarkNet increases transaction speed and reduces costs, helping dApps scale better.

Developer Tools and Ecosystem

StarkNet offers a programming language called Cairo and supports building various decentralized applications with high throughput and interoperability with Ethereum.

Pros

• Scalability: StarkNet improves Ethereum's ability to handle many transactions quickly by processing them off-chain.
• Low Fees: Transactions on StarkNet cost less compared to Ethereum's mainnet.
• Ethereum Compatibility: It works well with Ethereum, making it easier for developers to build on it.
• Advanced Technology: Uses zk-rollups and ZK-STARK proofs for efficient and secure transaction verification.
• Decentralization: Does not rely on third parties, maintaining a decentralized network.

Cons

• Complexity: The technology and programming language (Cairo) can be hard to learn and use.
• Competition: Faces strong competition from other Layer 2 scaling solutions.
• Adoption: Still growing, with fewer applications and users compared to Ethereum mainnet.
• Token Price Volatility: The native token STRK has experienced price drops, which some users watch closely.

Founders of StarkNet

• Eli Ben-Sasson: Mathematician and computer scientist, president of StarkWare, and co-founder of StarkNet.
• Michael Riabzev: Co-founder and former active member of StarkWare.
• Uri Kolodny: Entrepreneur, CEO of StarkWare, and co-founder of StarkNet.
• Alessandro Chiesa: Lead scientist and co-founder of StarkWare and StarkNet.

These four co-founded StarkWare Industries Ltd. in 2018, the company behind StarkNet. Eli Ben-Sasson remains actively involved as of early 2024.

Major Investors

StarkNet is backed by well-known investment firms including Paradigm, Sequoia Capital, Pantera Capital, Founders Fund, Alameda Research, DCVC, Wing VC, Coinbase Ventures, Polychain Capital, Multicoin Capital, Tiger Global Management, and ConsenSys.

Funding Rounds

• Series A raised $30 million with Paradigm leading and participation from Intel Capital, Atomico, and others.
• Series B raised $75 million with returning investors like Sequoia and Founders Fund, plus new backers such as Three Arrows and Alameda Research.
• Overall, StarkNet has raised over $225 million to $273 million in total funding.

Valuation

StarkNet is currently valued around $8 billion.

Halal Status of StarkNet

• Yes: StarkNet is a blockchain technology platform that focuses on scaling and improving Ethereum and Bitcoin networks using advanced cryptography and smart contracts. It does not inherently involve interest (riba) or gambling (maisir), which are key concerns in halal finance.
• Reason: Since StarkNet is a technical infrastructure and does not itself engage in prohibited financial activities, it can be considered halal. However, the halal status may depend on how it is used in specific projects or tokens built on it.