Ethereum ZK-Rollup Developer StarkWare Raises $50M at $2B Valuation

Ethereum ZK-Rollup Developer StarkWare Raises $50M at $2B Valuation

Key Takeaways

  • StarkWare has raised a further $50 million from buyers, valuing the corporate at $2 billion.
  • The increase comes weeks earlier than the launch of the highly-anticipated StarkNet Alpha.
  • StarkNet Alpha will permit anybody to deploy good contracts utilizing StarkWare’s ZK-Rollups.

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ZK-Rollup developer StarkWare has raised $50 million in a Series C funding spherical that values the agency at $2 billion. The firm plans to launch StarkNet Alpha on Ethereum mainnet by the top of November.

StarkWare Increases Valuation

Just weeks earlier than StarkNet Alpha’s mainnet launch, buyers are doubling down. 

The ZK-Rollup developer introduced the top of its Series C funding spherical Tuesday after elevating $50 million from a number of current buyers. Sequoia Capital led the spherical, with funding funds Paradigm, Three Arrows Capital, Alameda Research, and Founders Fund additionally collaborating. 

StarkWare makes use of ZK-Rollups to scale Ethereum. ZK-Rollups bundle transactions off-chain and create ZK-SNARKs, which get submitted to the bottom chain. They permit for quicker transactions with considerably diminished fuel charges. Rollup expertise presently is available in two flavors—ZK and Optimistic. Optimistic Rollups corresponding to Arbitrum and Optimism depend on belief between events, leading to a problem interval the place anybody can dispute the legitimacy of a transaction. This means it will possibly take as much as per week for customers to switch funds again to Ethereum mainnet. However, ZK-Rollups submit proofs to the mainnet constantly, permitting customers to switch funds again immediately. 

Currently, StarkWare has built-in StarkEx, its ZK-Rollup scaling engine, into a number of crypto tasks such because the decentralized trade dYdX and the fantasy soccer NFT platform Sorare. However, with the launch of StarkNet Alpha deliberate later this month, builders will have the ability to independently launch good contracts on the community, opening up the scaling expertise to whoever needs to construct on it. 

As fuel charges and congestion on Ethereum present no indicators of lowering, competitors for efficient scaling options is heating up. In September, Enya and OMG Network launched an Optimistic Rollup resolution known as Boba Network, aiming to scale back the problem interval time and streamline withdrawals. 

Earlier right now, in the meantime, Layer 2 Polygon unveiled its personal ZK-Rollup known as Miden, developed beneath Polygon’s $1 billion fund allotted to ZK-based tasks. Miden will compete with current ZK-Rollups corresponding to zkSync, Loopring, and StarkWare’s upcoming StarkNet to supply scaling options for Ethereum dApps. 

Disclosure: At the time of scripting this characteristic, the creator owned ETH and several other different cryptocurrencies. 

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