{"id":78124,"date":"2023-05-02T07:00:00","date_gmt":"2023-05-02T04:00:00","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=78124"},"modified":"2025-09-11T03:11:14","modified_gmt":"2025-09-11T00:11:14","slug":"layerzero-and-starknet-on-the-path-to-interoperability-and-scalability","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/layerzero-and-starknet-on-the-path-to-interoperability-and-scalability\/","title":{"rendered":"LayerZero and StarkNet: on the path to interoperability and scalability"},"content":{"rendered":"<p>Ethereum remains in urgent need of scaling, as evidenced by the rapid rise in gas prices amid market activity. The cost of exchanging <a href=\"https:\/\/forklog.com\/en\/news\/what-are-erc-20-tokens\">ERC-20<\/a> tokens or providing liquidity in <a href=\"https:\/\/forklog.com\/en\/news\/what-is-an-automated-market-maker\">AMM<\/a>-pool of a decentralised exchange can sometimes <a href=\"https:\/\/etherscan.io\/gastracker\">reach<\/a> several tens, and even hundreds, of dollars.<\/p>\n<p>In response to the situation, developers are diligently working on new <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-layer%e2%80%912-solution-in-blockchain\">layer-2 solutions<\/a> (L2) and <a href=\"https:\/\/forklog.com\/en\/news\/what-are-cross-chain-bridges\">cross\u2011chain bridges<\/a>, aiming to make them as efficient and secure as possible. According to <a href=\"https:\/\/l2beat.com\/scaling\/tvl\">L2BEAT<\/a>, the combined <span data-descr=\"value of assets locked in the smart contracts of decentralized applications\" class=\"old_tooltip\">TVL<\/span> of the segment since the start of the year has grown by more than 150%, crossing the $10 billion mark.<\/p>\n<p>In this article we briefly examine the features of the promising projects \u2014 StarkNet and LayerZero.<\/p>\n<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>StarkWare\u2019s developers are focused on increasing the technology\u2019s efficiency, reducing transaction costs and decentralising the decision-making process. The latter may indicate an upcoming utility-token release.<\/li>\n<li>The LayerZero protocol aims to improve cross\u2011chain communication efficiency without compromising security. This is particularly relevant in light of <a href=\"https:\/\/forklog.com\/en\/news\/chainalysis-estimates-2bn-in-losses-from-cross-chain-protocol-hacks-so-far-this-year\">recent cross\u2011chain bridge hacks<\/a>.<\/li>\n<li>Many market participants expect future airdrops from the aforementioned projects and therefore seek to engage in the relevant ecosystems.<\/li>\n<\/ul>\n<\/div>\n<h2 class=\"wp-block-heading\">StarkNet<\/h2>\n<p>StarkNet, from the Israeli company StarkWare, is a decentralised Layer-2 scaling solution for the second-largest cryptocurrency by market capitalisation, based on the ZK-STARK mechanism.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abIt provides high throughput, low gas costs and preserves the security levels inherent to the Ethereum mainnet\u00bb, \u2014 said <a href=\"https:\/\/www.starknet.io\/en\/learn\/what-is-starknet\">on the project\u2019s site<\/a>.<\/p>\n<\/blockquote>\n<p>The head of the project is the renowned cryptographer Eli Ben\u2011Sasson, a Technion professor and co\u2011inventor of the STARK technology. Among other co\u2011founders: Mikhail Ryabtsov (co\u2011inventor of ZK-STARK), Uri Kolodny and Alessandro Chiesa (co\u2011founder of <a href=\"https:\/\/forklog.com\/en\/news\/what-is-zcash-zec\">Zcash<\/a>).<\/p>\n<p>Since its inception in 2017, the firm has raised more than <a href=\"https:\/\/www.crunchbase.com\/organization\/starkware-industries-ltd\">$280m<\/a>. It has attracted funding from Paradigm, Sequoia Capital, Pantera Capital, Multicoin Capital, Coinbase Ventures, and Ethereum co\u2011founder Vitalik Buterin. <\/p>\n<p>In May 2022, following a Series D round of $100 million, investors valued StarkWare at <span class=\"old_tooltip\" data-descr=\"\"><a href=\"https:\/\/forklog.com\/en\/news\/starkware-project-raises-100-million-in-series-d-at-an-8-billion-valuation\">$8 billion<\/a><\/span>.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"591\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/1-Cryptorank-StarkNet-1024x591.png\" alt=\"1-Cryptorank-StarkNet\" class=\"wp-image-205742\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/1-Cryptorank-StarkNet-1024x591.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/1-Cryptorank-StarkNet-300x173.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/1-Cryptorank-StarkNet-768x443.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/1-Cryptorank-StarkNet.png 1403w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Last funding rounds for StarkNet. Data: <a href=\"https:\/\/cryptorank.io\/ico\/starknet\">CryptoRank<\/a>.<\/figcaption><\/figure>\n<p>Core products are StarkEx and StarkNet. The former is based on a <a href=\"https:\/\/forklog.com\/en\/news\/what-are-rollups-and-how-do-they-scale-ethereum\">SaaS<\/a> model and allows decentralised applications to meet specific needs. It is used by platforms such as dYdX and Sorare.<\/p>\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"259\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/2-StarkEx-stats-1024x259.png\" alt=\"2-StarkEx-stats\" class=\"wp-image-205743\" style=\"width:840px;height:212px\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/2-StarkEx-stats-1024x259.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/2-StarkEx-stats-300x76.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/2-StarkEx-stats-768x194.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/2-StarkEx-stats.png 1158w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">StarkEx ecosystem statistics. Data: <a href=\"https:\/\/starkware.co\/starkex\/\">StarkWare<\/a>.<\/figcaption><\/figure>\n<p>The second product is a permissionless solution for Ethereum based on <a href=\"https:\/\/forklog.com\/en\/news\/what-are-rollups-and-how-do-they-scale-ethereum\">Rollups<\/a>. It enables developers to build and deploy their own smart contracts and to interact with other applications.<\/p>\n<p>It is envisaged that in the future StarkEx will become the project\u2019s \u201cthird level,\u201d deployed on top of StarkNet for specific DeFi protocols to simplify and cheaper their usage.<\/p>\n<p>The developers at StarkWare have already <a href=\"https:\/\/forklog.com\/en\/news\/starkware-confirms-the-launch-of-the-starknet-governance-token\">released<\/a> the governance token STRK, an ERC-20 standard, for investors, employees and the development fund. The coin could enter free circulation in 2023.<\/p>\n<p>The asset is intended to contribute to decentralising the network and is meant to perform three main roles:<\/p>\n<ul class=\"wp-block-list\">\n<li>participation in governance via staking;<\/li>\n<li>payment of transaction fees in StarkNet;<\/li>\n<li>application in the consensus mechanism.<\/li>\n<\/ul>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/3-Tolenomics_StarkNet.webp\" alt=\"3-Tolenomics_StarkNet\" class=\"wp-image-205744\"\/><figcaption class=\"wp-element-caption\">StarkNet tokenomics. Data: <a href=\"https:\/\/cryptorank.io\/ico\/starknet\">CryptoRank<\/a>.<\/figcaption><\/figure>\n<p>According to <a href=\"https:\/\/forklog.com\/en\/news\/opinion-starknet-roadmap-lays-the-groundwork-for-a-2024-airdrop\">the project\u2019s roadmap<\/a>, in 2023 developers focus on increasing the technology\u2019s efficiency and reducing transaction costs. In 2024 the emphasis will shift to decentralising decision-making, which may indicate an upcoming airdrop.<\/p>\n<h3 class=\"wp-block-heading\">Key features of the technology<\/h3>\n<p>StarkNet is a permissionless ZK\u2011Rollup in which smart contracts are written in its own programming language <a href=\"https:\/\/starkware.co\/cairo\/\">Cairo<\/a>. The latter is <a href=\"https:\/\/ru.wikipedia.org\/wiki\/%D0%9F%D0%BE%D0%BB%D0%BD%D0%BE%D1%82%D0%B0_%D0%BF%D0%BE_%D0%A2%D1%8C%D1%8E%D1%80%D0%B8%D0%BD%D0%B3%D1%83\">Turing\u2011complete<\/a> and \u201cspecifically designed for STARK proofs.\u201d<\/p>\n<p>The StarkWare team <span data-descr=\"\u0437\u0430\u043f\u0443\u0441\u0442\u0438\u043b\u0430\" class=\"old_tooltip\"><a href=\"https:\/\/forklog.com\/en\/news\/starkware-launches-alpha-version-of-starknet-the-l2-scaling-solution\">launched<\/a><\/span> an alpha version of the mainnet in November 2021.<\/p>\n<p>The StarkNet-based ecosystem includes <a href=\"https:\/\/www.starknet-ecosystem.com\/\">more than 120 projects<\/a>, among them:<\/p>\n<ul class=\"wp-block-list\">\n<li>wallets Argent X, Braavos and BitKeep;<\/li>\n<li>cross\u2011chain bridges StarkGate and Orbiter Finance;<\/li>\n<li><span data-descr=\"decentralised\/non-custodial exchanges\" class=\"old_tooltip\">DEX<\/span> (JediSwap,10KSwap);<\/li>\n<li>digital identity services Starknet.id and Dynamic;<\/li>\n<li><a href=\"https:\/\/forklog.com\/en\/news\/what-is-gamefi\">GameFi<\/a>-projects;<\/li>\n<li>NFT services, etc.<\/li>\n<\/ul>\n<p>Like other L2 solutions based on rollups, StarkWare\u2019s technology bundles hundreds and thousands of transactions into batches and cryptographically attests to their validity.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abAll transactions in StarkNet are periodically batched, and STARK proofs verify their validity. This approach significantly reduces the computational power required for verification\u00bb, \u2014 <a href=\"https:\/\/www.alchemy.com\/overviews\/zk-rollup-projects\">explained<\/a> by Alchemy researchers.<\/p>\n<\/blockquote>\n<p>The architecture of the platform has three basic off\u2011chain components:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>Sequencer<\/strong> (Sequencer) \u2014 a server that receives transactions, verifies and batches them into blocks. It currently exists in a single instance and is controlled by StarkWare. As decentralisation advances, network participants will be able to run their own sequencers;<\/li>\n<li><strong>Prover<\/strong> \u2014 responsible for generating cryptographic proofs confirming the integrity of computations performed by the sequencer. Currently there is a single Prover, which generates proofs not only for StarkNet but also for StarkEx;<\/li>\n<li><strong>pathfinder<\/strong> \u2014 a full node for recording transactions and tracking the system state.<\/li>\n<\/ul>\n<p>StarkNet also has two on\u2011chain components:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>Verifier<\/strong> \u2014 a smart contract on the Ethereum network that receives newly generated proofs from the prover and verifies them. The result is sent to the core;<\/li>\n<li><strong>Core<\/strong> \u2014 a smart contract that receives changes to StarkNet\u2019s global state each time an L2 block is created and its cryptographic proof is successfully verified by the verifier.<\/li>\n<\/ul>\n<p>StarkWare says this architecture will help StarkNet reduce gas costs by 100\u2013200 times relative to Ethereum.<\/p>\n<p>The technology differs somewhat from solutions based on <a href=\"https:\/\/forklog.com\/en\/news\/looking-ahead-with-optimism-how-rollups-solve-ethereums-scaling-challenge\">Optimistic Rollups<\/a>, used, for instance, in <a href=\"https:\/\/forklog.com\/en\/news\/what-is-arbitrum\">Arbitrum<\/a>. In StarkNet, the use of ZK\u2011STARK allows transmitting a proof of authenticity with the transaction. There is no period during which a transaction can be disputed.<\/p>\n<p>In Optimistic Rollups, to speed up processing all transactions are assumed to be valid until proven otherwise. If a node is malicious and allows incorrect operations, a seven\u2011day window is provided during which the transaction can be challenged and reversed by verifiers.<\/p>\n<p>The main difference between StarkNet and <a href=\"https:\/\/forklog.com\/en\/news\/arbitrum-nova-and-zksync-ultra-low-fees-and-the-prospect-of-a-generous-airdrop\">zkSync<\/a> is that the latter uses ZK\u2011SNARK technology.<\/p>\n<p>Some cryptographers believe that ZK\u2011STARK technology:<\/p>\n<ul class=\"wp-block-list\">\n<li>is more secure at all stages of setup and operation;<\/li>\n<li>potentially up to 10x more scalable than ZK\u2011SNARK;<\/li>\n<li>resists attacks using quantum computers.<\/li>\n<\/ul>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abStarkNet hopes to make crypto applications accessible to all. And this is the first ZK\u2011Rollup capable of offering a general\u2011purpose smart contract platform on a fully composable network\u00bb, \u2014 noted the Alchemy researchers.<\/p>\n<\/blockquote>\n<p>In August 2022, StarkWare <span class=\"old_tooltip\" data-descr=\"launched\"><a href=\"https:\/\/forklog.com\/en\/news\/starkware-developers-unveil-new-l2-scaling-solution-for-ethereum\">launched<\/a><\/span> on the Ethereum mainnet the L2 scaling technology using recursive proofs, deployed in applications built on StarkNet and StarkEx.<\/p>\n<p>The developers emphasised that the new solution not only reduces fees and speeds up transactions but also \u201cpaves the way for L3 and other benefits.\u201d<\/p>\n<p>Eli Ben\u2011Sasson believes that Cairo\u2011written recursive proofs could, in theory, bundle up to 60 million transactions into a single Ethereum block (currently fewer than 1,000).<\/p>\n<p>In October 2022, the Nethermind Ethereum client developers <span class=\"old_tooltip\" data-descr=\"launched\"><a href=\"https:\/\/forklog.com\/en\/news\/ethereum-developers-launch-uniswap-fork-on-starknet-layer-2-network\">launched<\/a><\/span> a fork of the leading decentralised exchange <a href=\"https:\/\/forklog.com\/en\/news\/what-is-uniswap-uni\">Uniswap<\/a> into StarkNet. The Warp plugin allowed <span data-descr=\"transpiling \u2014 transforming a program written in one language into the equivalent code in another version of that language or into another programming language at the same level of abstraction.\" class=\"old_tooltip\">transpiling<\/span> software from the Ethereum main language \u2014 Solidity.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abUnlike other ZK\u2011Rollups such as zkSync, StarkNet is not a \u201czkEVM\u201d. In other words, smart contracts have to be written in the Cairo language\u00bb, \u2014 <a href=\"https:\/\/www.argent.xyz\/learn\/what-is-starknet\/\" title=\"noted\">noted<\/a> Argent\u2019s developers.<\/p>\n<\/blockquote>\n<p>According to them, after converting code with Warp, applications require some optimisation to run properly on StarkNet.<\/p>\n<p>At the end of 2022 Visa explored StarkNet for automated and programmable payments. The team used the Argent wallet in the proof-of-concept.<\/p>\n<p>In February 2023, StarkWare <a href=\"https:\/\/forklog.com\/en\/news\/starkware-announces-partnership-with-chainlink\">expanded cooperation<\/a> with the network of decentralised <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-blockchain-oracle\">oracles Chainlink<\/a>. The company also announced open\u2011sourcing of Prover.<\/p>\n<h3 class=\"wp-block-heading\">How to interact with StarkNet?<\/h3>\n<p>To start with the ecosystem you will need a Web3 wallet (<a href=\"https:\/\/forklog.com\/en\/news\/what-is-web3\">Web3<\/a>) \u2014 a MetaMask wallet (<a href=\"https:\/\/forklog.com\/en\/news\/what-is-metamask\">MetaMask<\/a>) with some ERC\u201120 ETH (<a href=\"https:\/\/forklog.com\/en\/news\/what-are-erc-20-tokens\">ERC-20<\/a>).<\/p>\n<p>You should also install the Argent X browser wallet, available as a <a href=\"https:\/\/chrome.google.com\/webstore\/detail\/argent-x\/dlcobpjiigpikoobohmabehhmhfoodbb\">Chrome extension<\/a>.<\/p>\n<p>Click Create a new wallet, tick two boxes in the disclaimer window that appears, and then click Continue.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" loading=\"lazy\" decoding=\"\" width=\"1024\" height=\"610\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/4-Create-new-Argent-X.webp\" alt=\"4-Create-new-Argent-X\" class=\"wp-image-205745\"\/><\/figure>\n<p>After this you need to create a password, re-enter it, click Create Wallet and then Finish.<\/p>\n<p>In the browser\u2019s top-right corner open the wallet, switch from Testnet to Mainnet and click Create Account.<\/p>\n<p>Be sure to go to Settings (the gear icon) and click Show recovery phrase. After entering the wallet password you must copy down the seed phrase and store it securely. <\/p>\n<p>To transfer ETH to the Layer 2 network you can use the official <a href=\"https:\/\/forklog.com\/en\/news\/what-are-cross-chain-bridges\">cross\u2011chain bridge<\/a> StarkGate. Go to the <a href=\"https:\/\/starkgate.starknet.io\/\">link<\/a> and in turn click Connect Ethereum Wallet and Connect StarkNet Wallet in the upper-right corner.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"610\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/5-StarkGate-1024x610.png\" alt=\"5-StarkGate\" class=\"wp-image-205746\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/5-StarkGate-1024x610.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/5-StarkGate-300x179.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/5-StarkGate-768x458.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/5-StarkGate.png 1201w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Data: <a href=\"https:\/\/starkgate.starknet.io\/\">StarkGate<\/a>.<\/figcaption><\/figure>\n<p>After connecting MetaMask and Argent X you should ensure that Ethereum is selected in the top field and StarkNet in the bottom one.<\/p>\n<p>Then enter the transfer amount, press Transfer and confirm the transaction in MetaMask. It will take a few minutes for the funds to be credited to the L2 network. <\/p>\n<p>The fee may be fairly high as it depends on the current gas price in the Ethereum blockchain. You can monitor it via the Etherscan gas tracker or via the CoinTool browser extension.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/6-StarkNet2.webp\" alt=\"6-StarkNet2\" class=\"wp-image-205747\"\/><figcaption class=\"wp-element-caption\">Data: <a href=\"https:\/\/starkgate.starknet.io\/\">StarkGate<\/a>.<\/figcaption><\/figure>\n<p>StarkGate also supports transferring ETH from other networks, including Polygon, Arbitrum and Optimism.<\/p>\n<p>Through this cross\u2011chain bridge you can also withdraw funds back from StarkNet to Ethereum. The fee is significantly lower, but the process takes about a day.<\/p>\n<p>After 24 hours you will need to return to the StarkGate page, reconnect the wallets and in the upper-right corner click Complete Transfer. Then confirm the transaction in MetaMask. A fee will be deducted, depending on the current Ethereum gas price.<\/p>\n<p>There are other unofficial bridges that enable rapid and relatively inexpensive transfers between various networks and StarkNet and back \u2014 for example Orbiter and LayerSwap (Cross\u2011Chain tab).<\/p>\n<p>The ecosystem\u2019s total TVL is relatively small \u2014 just under $8 million (as of 22.04.2023). Yet the figure is steadily rising.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"486\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/7-DeFillama_StarkNet-1024x486.png\" alt=\"7-DeFillama_StarkNet\" class=\"wp-image-205748\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/7-DeFillama_StarkNet-1024x486.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/7-DeFillama_StarkNet-300x142.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/7-DeFillama_StarkNet-768x364.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/7-DeFillama_StarkNet-1536x729.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/7-DeFillama_StarkNet.png 1631w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Data: <a href=\"https:\/\/defillama.com\/chain\/Starknet\">DeFi Llama<\/a>.<\/figcaption><\/figure>\n<p>DeFi Llama\u2019s ecosystem ranking for StarkNet features mainly DEXs, the largest of which is <a href=\"https:\/\/www.jediswap.xyz\/\">JediSwap<\/a>.<\/p>\n<p>To launch the trading platform\u2019s web interface, click Launch App in the site\u2019s top-right corner. Then in the warning window that appears (this is still an alpha version) click \u201cI understand the risks outlined above\u201d and connect your wallet.<\/p>\n<p>Interacting with this DEX is similar to many other platforms of this kind.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" loading=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/8-JediSwap.webp\" alt=\"8-JediSwap\" class=\"wp-image-205749\"\/><figcaption class=\"wp-element-caption\">Data: <a href=\"https:\/\/app.jediswap.xyz\/#\/swap\">JediSwap<\/a>.<\/figcaption><\/figure>\n<p>Swap 0.1 ETH for USDC in the Trade tab. When you press Swap and then Confirm Swap, a transaction confirmation window appears in the wallet.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" loading=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/9-JediSwap_ConfirmSwap.webp\" alt=\"9-JediSwap_ConfirmSwap\" class=\"wp-image-205750\"\/><figcaption class=\"wp-element-caption\">Data: <a href=\"https:\/\/app.jediswap.xyz\/#\/swap\">JediSwap<\/a>.<\/figcaption><\/figure>\n<p>In our case the fee amounted to $1.08.<\/p>\n<p>To place tokens into a liquidity pool, use the Pool tab. This requires clicking Add liquidity and choosing the appropriate assets.<\/p>\n<figure class=\"wp-block-image size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/10-Jedi_Add.webp\" alt=\"10-Jedi_Add\" class=\"wp-image-205751\" style=\"width:515px;height:820px\"\/><figcaption class=\"wp-element-caption\">Data: <a href=\"https:\/\/app.jediswap.xyz\/#\/swap\">JediSwap<\/a>.<\/figcaption><\/figure>\n<p>Click Supply, then Confirm Supply and confirm the transaction in the wallet\u2019s pop\u2011up. In our case the fee was $1.4.<\/p>\n<p>Fees on StarkNet are among the highest of Layer-2 solutions.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/11-L2Fees.webp\" alt=\"11-L2Fees\" class=\"wp-image-205752\"\/><figcaption class=\"wp-element-caption\">Data: <a href=\"https:\/\/l2fees.info\/\">L2Fees<\/a> (as of 22.04.2023).<\/figcaption><\/figure>\n<p>Developers are hard at work on scaling and improving the system\u2019s efficiency. This means that, in the future, fees should fall, boosting competition in the L2 space.<\/p>\n<h2 class=\"wp-block-heading\">LayerZero<\/h2>\n<p>Interoperability remains one of the biggest challenges on the road to development and mass adoption of blockchain solutions. Because of technological differences, many ecosystems operate in isolation, hindering the free exchange of data and assets. LayerZero is designed to remove these barriers without compromising security and decentralisation. According to the developers, the omnichain protocol combines the economic efficiency of <a href=\"https:\/\/forklog.com\/en\/news\/what-is-polkadot-dot\">Polkadot<\/a> and the security of <a href=\"https:\/\/forklog.com\/en\/news\/what-is-cosmos-atom\">Cosmos<\/a>.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abBecause of high fees and changing preferences of DeFi investors, apps spread across multiple blockchains. This has led to significant market fragmentation. LayerZero solves this by linking liquidity across chains\u00bb, \u2014 said LayerZero co\u2011founder Bryan Pellegrino.<\/p>\n<\/blockquote>\n<p>In autumn 2021 the project <a href=\"https:\/\/forklog.com\/en\/news\/binance-labs-and-multicoin-capital-invest-in-layerzero-omnichain-protocol\">raised $6m<\/a> in a Series A funding round led by Binance Labs and Multicoin Capital. Sino Global Capital, Delphi Digital, Spartan and other well\u2011known venture firms also participated.<\/p>\n<p>In spring 2022 the LayerZero team <a href=\"https:\/\/forklog.com\/en\/news\/layerzero-omni-chain-protocol-team-raises-135-million-at-a-1-billion-valuation\">raised $135m<\/a> in a Series A+ round at a $1bn valuation. It was led by Sequoia, FTX Ventures and Andreessen Horowitz.<\/p>\n<p>Coinbase Ventures, PayPal Ventures, Tiger Global and Uniswap Labs also participated in funding.<\/p>\n<p>Shortly before the round\u2019s close, the total funds involved in the LayerZero-based cross\u2011chain Stargate stood at <a href=\"https:\/\/forklog.com\/en\/news\/layerzero-omni-chain-protocol-team-raises-135-million-at-a-1-billion-valuation\">$2.5bn<\/a>. This was one week after its launch.<\/p>\n<p>Stargate enables token transfers within a single transaction, without locking, minting or burning, and also supports the redemption of wrapped assets.<\/p>\n<p>In spring 2023 the project <a href=\"https:\/\/forklog.com\/en\/news\/investors-value-layerzero-at-3-billion-after-120-million-series-b-funding\">raised $120m<\/a> in a Series B round. The cross\u2011chain protocol was valued at $3bn.<\/p>\n<p>The startup was backed by a16z Crypto, Sequoia Capital, Circle Ventures, Samsung Next, OpenSea, Christie\u2019s and other investors.<\/p>\n<p>Since its inception the project has raised $263m across five rounds.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"633\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/12-LayerZero_CryptoRank-1024x633.png\" alt=\"12-LayerZero_CryptoRank\" class=\"wp-image-205753\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/12-LayerZero_CryptoRank-1024x633.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/12-LayerZero_CryptoRank-300x185.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/12-LayerZero_CryptoRank-768x475.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/12-LayerZero_CryptoRank.png 1404w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Data: <a href=\"https:\/\/cryptorank.io\/ico\/layerzero#funding-rounds\">CryptoRank<\/a>.<\/figcaption><\/figure>\n<p>LayerZero supports Ethereum, BNB Chain, Polygon, Avalanche, Fantom, Aptos, Arbitrum, Optimism, and, recently, <a href=\"https:\/\/forklog.com\/en\/news\/layerzero-announces-integration-with-polygon-zkevm\">zkEVM<\/a>. The protocol has integrated Uniswap, SushiSwap and PancakeSwap.<\/p>\n<p>The solution also enables transferring NFTs via <a href=\"https:\/\/layerzero.gitbook.io\/docs\/evm-guides\/layerzero-omnichain-contracts\">Omnichain Non\u2011Fungible Tokens<\/a>.<\/p>\n<p>When working with LayerZero you do not need to rely on a third party. Different chains are connected and interact via decentralised oracles and <a href=\"https:\/\/medium.com\/layerzero-official\/layerzero-an-omnichain-interoperability-protocol-b43d2ae975b6\">\u201cUltra Light Nodes\u201d (Ultra Light Node, ULN)<\/a>. The communication among these forms essentially a single network, where inter\u2011blockchain interaction is facilitated by the LayerZero Endpoint interface.<\/p>\n<p>This approach is economically efficient and trustless. It enables seamless data exchange \u2014 a single liquidity pool can participate in multiple DeFi applications across ecosystems. This is particularly relevant for decentralised exchanges, yield aggregators and lending services that support a wide range of networks.<\/p>\n<p>LayerZero is a modular and extensible system, where adding chains does not require a protocol upgrade. This approach offers greater flexibility and broader scalability. To achieve interoperability there is no need to deploy complex smart contracts and new chains (as, for example, parachains in Polkadot).<\/p>\n<p>Analysts at Nansen recently noted a surge of activity in the Stargate protocol and on the Radiant Capital lending platform built on LayerZero.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">3\/ <a href=\"https:\/\/twitter.com\/LayerZero_Labs?ref_src=twsrc%5Etfw\">@LayerZero_Labs<\/a>, <a href=\"https:\/\/twitter.com\/StargateFinance?ref_src=twsrc%5Etfw\">@StargateFinance<\/a>, and <a href=\"https:\/\/twitter.com\/RDNTCapital?ref_src=twsrc%5Etfw\">@RDNTCapital<\/a> are among the most popular entities on <a href=\"https:\/\/twitter.com\/hashtag\/Arbitrum?src=hash&#038;ref_src=twsrc%5Etfw\">#Arbitrum<\/a> in terms of users and transactions<\/p>\n<p>7-day users:<\/p>\n<p>LayerZero: 125,715<br \/>Radiant: 112,807<br \/>Stargate: 111,150<\/p>\n<p>Source: <a href=\"https:\/\/t.co\/7wUny17yxX\">https:\/\/t.co\/7wUny17yxX<\/a> <a href=\"https:\/\/t.co\/UKssJS86XP\">pic.twitter.com\/UKssJS86XP<\/a><\/p>\n<p>\u2014 Nansen | ?Consensus2023 (@nansen_ai) <a href=\"https:\/\/twitter.com\/nansen_ai\/status\/1643858915501936641?ref_src=twsrc%5Etfw\">April 6, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In hopes of a potential ZRO token airdrop, many also use <a href=\"https:\/\/theaptosbridge.com\/\">Aptos Bridge<\/a> and other ecosystem apps <a href=\"https:\/\/layerzero-ecosystem.mypagecloud.com\/\">on the ecosystem<\/a>.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">2\/ Over 3,000 wallets used the LayerZero: <a href=\"https:\/\/twitter.com\/hashtag\/Aptos?src=hash&#038;ref_src=twsrc%5Etfw\">#Aptos<\/a> Bridge in the last 7 days with a $4.2M inflow<\/p>\n<p>The bridge volume\/token balances have increased to $20 million, primarily in <a href=\"https:\/\/twitter.com\/search?q=%24USDC&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$USDC<\/a>, followed by <a href=\"https:\/\/twitter.com\/search?q=%24USDT&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$USDT<\/a> and <a href=\"https:\/\/twitter.com\/search?q=%24WETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$WETH<\/a><\/p>\n<p>Source: <a href=\"https:\/\/t.co\/7ebTGxBTUi\">https:\/\/t.co\/7ebTGxBTUi<\/a> <a href=\"https:\/\/t.co\/FFKyYRgUPq\">pic.twitter.com\/FFKyYRgUPq<\/a><\/p>\n<p>\u2014 Nansen | ?Consensus2023 (@nansen_ai) <a href=\"https:\/\/twitter.com\/nansen_ai\/status\/1643858907675369473?ref_src=twsrc%5Etfw\">April 6, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Stargate cross\u2011chain bridge is similar to other such solutions. As of writing, it supports Ethereum, BNB Chain, Avalanche, Polygon, Arbitrum, Optimism, Fantom and Metis.<\/p>\n<p>You can transfer assets from one network to another in the Transfer section.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/13-Stargate.webp\" alt=\"13-Stargate\" class=\"wp-image-205754\"\/><figcaption class=\"wp-element-caption\">Data: <a href=\"https:\/\/stargate.finance\/transfer\">Stargate<\/a>.<\/figcaption><\/figure>\n<p>In the Farm tab there is a possibility to earn passive income from stablecoins such as USDT, USDC, DAI and FRAX.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"384\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/14-StargateFarm-1024x384.png\" alt=\"14-StargateFarm\" class=\"wp-image-205755\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/14-StargateFarm-1024x384.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/14-StargateFarm-300x113.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/14-StargateFarm-768x288.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/14-StargateFarm.png 1135w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Data: <a href=\"https:\/\/stargate.finance\/farm\">Stargate<\/a>.<\/figcaption><\/figure>\n<p>In the <a href=\"https:\/\/stargate.finance\/stake\">Stake<\/a> section you can stake the utility token STG on the BNB Chain and Arbitrum networks.<\/p>\n<p><a href=\"https:\/\/theaptosbridge.com\/bridge\">Aptos Bridge<\/a> enables almost instant transfers of assets from various chains to the Aptos network. To interact with the platform you should connect the MetaMask and <a href=\"https:\/\/chrome.google.com\/webstore\/detail\/martian-wallet-for-sui-ap\/efbglgofoippbgcjepnhiblaibcnclgk\">Martian<\/a> wallets.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/15-Aptos-Bridge.webp\" alt=\"15-Aptos-Bridge\" class=\"wp-image-205756\"\/><figcaption class=\"wp-element-caption\">Data: <a href=\"https:\/\/theaptosbridge.com\/bridge\">Aptos Bridge<\/a>.<\/figcaption><\/figure>\n<p>Also on LayerZero are cross\u2011chain bridges from platforms <a href=\"https:\/\/fi.woo.org\/\">WooFi<\/a>, <a href=\"https:\/\/bitcoinbridge.network\/bridge\">BitcoinBridge<\/a> and <a href=\"https:\/\/bridge.liquidswap.com\/\">LiquidSwap<\/a>.<\/p>\n<h2 class=\"wp-block-heading\">Conclusions<\/h2>\n<p>Given the scale of investments, integrations, the roadmap and TVL dynamics, StarkNet has strong prospects to become a major ecosystem with many interesting DeFi applications. A decentralisation trajectory with a subsequent utility-token launch could also be positive for the project.<\/p>\n<p>For now, StarkNet lags behind competitors on cost of fees, which may restrain user activity. However, based on developers\u2019 statements, the technology\u2019s potential remains to be unlocked \u2014 and the issue is likely to be resolved.<\/p>\n<p>Interoperability, efficiency and security of inter\u2011blockchain interaction are a pressing and important area of crypto development. The success of LayerZero will have a significant impact on a broad range of DeFi platforms, including DEXs, lending services and yield aggregators.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this article we briefly examine the features of the promising projects \u2014 StarkNet and LayerZero.<\/p>\n","protected":false},"author":1,"featured_media":78125,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"5","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[1144],"tags":[1158,1210,1179,1349,1374],"class_list":["post-78124","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-longreads","tag-airdrops","tag-cross-chain-protocols","tag-layer-2-solutions","tag-layerzero","tag-starkware"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"5","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/78124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=78124"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/78124\/revisions"}],"predecessor-version":[{"id":78126,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/78124\/revisions\/78126"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/78125"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=78124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=78124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=78124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}