StarkWare, a Polygon challenger, hits $2 billion valuation

Karthik Subramanian

Starkware, a Layer 2 solution on Ethereum, has announced that it has raised $50 million in its Series C led by Sequoia Capital which improves its valuation to $2 billion as it begins to set its sights on bigger things.

As the crypto industry has exploded over the last year or so, we have seen networks like Ethereum begin to struggle while other networks like Polygon, StarkWare, and Solana are making the most of it as they offer lower fees and higher speed. Polygon and StarkWare are Layer 2 solutions on Ethereum and they are looking to resolve the scaling issues that Ethereum seems to be suffering with. Investors have also been quick to notice the startups that are working in this space and have been generally very supportive of the same. The company is expected to use this funding to build out the StarkNet platform on which developers would be able to build their applications.

“The main thing that distinguishes us in the L2 ecosystem… is that we are servicing the largest throughput today in terms of both transactions and volume across all the [L2] solutions out there,” co-founder Eli Ben-Sasson said. “We’ve settled over $200 billion and settled over 50 million transactions.”

The network already hosts some of the star applications like dYdX, Sorare, and others and it would be looking forward to onboarding many more applications on its network which will then be able to bring along even more users and volume as well.  StarkWare’s scaling solution is a zero-knowledge rollup, something that is worked on by Polygon Hermez also at this time; it processes several transactions on its platform, bundles them into a single one, and inscribes the bundled data to the Ethereum network. Unlike the other groups that are in existence now, the StarkWare solution does not depend on validators but they make use of cryptography to mathematically confirm that everything is in order before it is pushed into the blockchain.

The StarkNet L2 has been under public testing for many months now and it is expected that it would be rolled into the Ethereum mainnet later in the month. The platform would hope that this would lead to more developers moving into the network and developing innovative applications which make use of the StarkWare solution.

Read this next

Crypto Insider

Gate.io lists DeFiChain’s DFI token amid growing popularity

Bitcoin-based DeFi platform DeFiChain announced the listing of its native DFI token on Gate.io, one of the world’s leading cryptocurrency exchanges.

Digital Assets

Binance in discussions with Japan regulators to relaunch operations

Binance, the world’s largest crypto exchange by traded volume, is reportedly seeking a license to operate in Japan after its exit from the country four years ago.

Digital Assets

OKX Chain integrates .crypto domains to simplify wallet transactions

Unstoppable Domains, a company building Blockchain domain names, has entered a partnership with EVM and IBC compatible chain OKC (OKX Chain). This collaboration will grant OKC’s users the ability to simplify deposits and withdrawals within the regulated fiat-focused crypto-asset exchange.

Retail FX, Technology

MetaTrader’s iOS issue opens brokers’ eyes to other trading platforms

In a surprising (or-not-so-surprising) move, Apple has removed MetaTrader 4 and MetaTrader 5 from its App Store in a huge blow for the leading FX trading platform provider.

Retail FX

Pepperstone adds Capitalise.ai analytics and automated trading tools free of charge

“We look forward to bringing significant value to Pepperstone traders and making a real, positive impact in their daily trading habits. We are excited to welcome them on board.”

Retail FX

FP Markets wins Best Global Value Broker for 4th consecutive year at the 2022 Global Forex Awards

“We greatly appreciate the continued international recognition as at FP Markets we pride ourselves on these attributes and these prestigious awards are testament to the hard work from our global team to always provide our clients with the ultimate trading experience.”

Inside View

How to Engage Your Customer at Every Stage of Their Journey

As many as 89% of successful businesses say that providing assistive customer experiences is critical to their growth. That’s because a mere 5% increase in customer retention can boost profits by 25% to 95%.

Industry News

CFTC fines Chinese firms Chinatex and COFCO $720,000 for wash trading

Chinatex traders engaged in wash trading in order to liquidate a long position in the account of an affiliated company and re-establish the position in its own account, to the ultimate benefit of its parent company, COFCO.

Industry News

US-based operation of Brazilian broker XP fined $500,000 for recordkeeping failures

“Proper recordkeeping is vital to protecting our markets and market participants from fraud and manipulation. This case serves as another example of the Commission’s intent to vigorously enforce the recordkeeping obligations of its registrants.”

<