StarkWare has raised an additional $50 million from investors, valuing the company at $2 billion.
The raise comes weeks before the launch of the highly-anticipated StarkNet Alpha.
StarkNet Alpha will allow anyone to deploy smart contracts using StarkWare’s ZK-Rollups.
Share this article
ZK-Rollup developer StarkWare has raised $50 million in a Series C funding round that values the firm at $2 billion. The company plans to launch StarkNet Alpha on Ethereum mainnet by the end of November.
StarkWare Increases Valuation
Just weeks before StarkNet Alpha’s mainnet launch, investors are doubling down.
The ZK-Rollup developer announced the end of its Series C funding round Tuesday after raising $50 million from several existing investors. Sequoia Capital led the round, with investment funds Paradigm, Three Arrows Capital, Alameda Research, and Founders Fund also participating.
We are excited to announce our Series C of $50M at $2B.
A big thanks to our lead investor, @sequoia, our wonderful follow-on investors, and the dozens of ecosystem partners and collaborators who participated in this round, for their vote of confidence in our products and tech. pic.twitter.com/CuaeMSf2s6
— StarkWare (@StarkWareLtd) November 16, 2021
StarkWare uses ZK-Rollups to scale Ethereum. ZK-Rollups bundle transactions off-chain and create ZK-SNARKs, which get submitted to the base chain. They allow for faster transactions with significantly reduced gas fees. Rollup technology currently comes in two flavors—ZK and Optimistic. Optimistic Rollups such as Arbitrum and Optimism rely on trust between parties, resulting in a challenge period where anyone can dispute the legitimacy of a transaction. This means it can take up to a week for users to transfer funds back to Ethereum mainnet. However, ZK-Rollups submit proofs to the mainnet continuously, allowing users to transfer funds back instantly.
Currently, StarkWare has integrated StarkEx, its ZK-Rollup scaling engine, into several crypto projects such as the decentralized exchange dYdX and the fantasy soccer NFT platform Sorare. However, with the launch of StarkNet Alpha planned later this month, developers will be able to independently launch smart contracts on the network, opening up the scaling technology to whoever wants to build on it.
As gas fees and congestion on Ethereum show no signs of decreasing, competition for effective scaling solutions is heating up. In September, Enya and OMG Network launched an Optimistic Rollup solution called Boba Network, aiming to reduce the challenge period time and streamline withdrawals.
Earlier today, meanwhile, Layer 2 Polygon unveiled its own ZK-Rollup called Miden, developed under Polygon’s $1 billion fund allocated to ZK-based projects. Miden will compete with existing ZK-Rollups such as zkSync, Loopring, and StarkWare’s upcoming StarkNet to provide scaling solutions for Ethereum dApps.
Disclosure: At the time of writing this feature, the author owned ETH and several other cryptocurrencies.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Polygon Unveils ZK-Rollup Solution Miden to Scale Ethereum
The Polygon team has launched Miden, a new scaling solution based on zero-knowledge proofs. Polygon Adds Layer 2 Solution Polygon has launched a new Layer 2 ZK-Rollup solution called Miden….
Ethereum Layer 2 Promising 100x Gas Cuts Live by November
StarkNet, an Ethereum Layer 2 scaling solution utilizing Zero-Knowledge Rollups, is set to launch in November. Testing shows a 100x to 200x reduction of gas fees for end users. StarkNet…
dYdX Partners with StarkWare to Scale Non-Custodial Exchange
The decentralized margin exchange dYdX is working closely with StarkWare, a blockchain tech company that develops zero-knowledge products. If successful, the results will provide traders with an efficient layer 2…
How Bumper’s Price Protection Helps DeFi Users Earn Yield on Their A…
Is it possible to build a DeFi protocol that counters crypto’s inherent volatility while also letting holders enjoy the upshot of their assets? Bumper Finance is a DeFi price-protection protocol that aims…