starkware ethereum layer 50m sequoia theblock

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.


The math-based technology invented by StarkWare is the invisible hand that increases blockchain’s bandwidth, giving it the capacity to serve everyone.”

“This valuation makes us more confident than ever in our vision. By empowering blockchains to scale globally, people of any economic status will gradually be able to stop entrusting data into the hands of big companies, and control it themselves instead.”

StarkWare is powering some of the biggest crypto success stories.
The company has instituted a new highly-efficient method for blockchain-based computation, which is used by some of the leading platforms and applications around the world. They include dYdX, Sorare, and Immutable X which in turn delivers our technology to many companies including TikTok.

Labs backed by Andreessen Horowitz. In August, Lightspeed backed startup Offchain Labs in a raise that valued the blockchain scaling company at $1.2 billion.

Despite being one of the more renowned investment firms in the tech sector, Sequoia has been slower to fully embrace crypto startups, leaving competitors like Andreessen Horowitz space to back more early players through dedicated funds. Sequoia first backed StarkWare back in 2018, though this is the first time leading a round for the startup.


A recent report from The Information detailed that a quarter of Sequoia’s new investments this year were made in blockchain startups.

“The main thing that distinguishes us in the L2 ecosystem… is that we are basically servicing the largest throughput today in terms of both transactions and volume across all the [L2] solutions out there,” co-founder Eli Ben-Sasson tells TechCrunch.

As opposed to Optimistic rollups, ZK-rollups generate zero-knowledge proofs for validating transactions.

StarkEx and StarkNet

StarkWare’s Ethereum scaling engine StarkEx is used by several crypto projects, including dYdX, Sorare, and Immutable. Kolodny said StarkEx has settled over $200 billion worth of trades, facilitating about 50 million transactions and serving hundreds of thousands of users at “dramatically cheaper” gas costs.

StarkWare is now set to launch StarkNet Alpha on mainnet Ethereum by the end of this month, said Kolodny.
The key difference between StarkEx and StarkNet is that the former is a permissioned tailor-made scaling engine, while the latter is a permissionless decentralized ZK-Rollup that supports independent deployment of smart contracts.

Israel-based StarkWare said the round was led by Sequoia Capital, with participation from existing investors, including Paradigm, Three Arrows Capital, Alameda Research, and Founders Fund.

This was an “opportunistic” fundraise, StarkWare co-founder and CEO Uri Kolodny told The Block in an interview, meaning that the company is already profitable but secured new funds to grow its team and ecosystem as fast as possible.

What is StarkWare?

StarkWare is one of a few blockchain startups that have built Ethereum scaling products using rollups technology.

There are mainly two types of rollups — ZK-rollups and Optimistic rollups — that allow executing Ethereum transactions off-chain and storing only transaction data on-chain, thereby reducing the network congestion, increasing its speed, and reducing gas fees.

StarkWare uses ZK-rollups for its scaling technology.


But this is about to change – the Series C funding will support the full deployment of the StarkNet platform (a “Layer 2” in blockchain jargon), which will let anyone build blockchain apps using StarkWare’s ground-breaking technology. This technology is expected to power a new generation of blockchain-based apps.

“Congested blockchains and high transaction fees are the biggest impediment to building mass-scale crypto apps for all, to meet the everyday needs of the general population,” said Uri Kolodny, Co-founder and CEO at StarkWare.
“StarkNet will change this.

Summary: According to a report from The Block, StarkWare, an Ethereum layer 2 development firm that uses ZK-rollups technology, raised $50 million in the C round of financing and is now valued at $2 billion. The round was led by Sequoia Capital. Paradigm, Three Arrows Capital, Alameda Research, IOSG Ventures, Founders Fund, etc participated.

The C round …

According to a report from The Block, StarkWare, an Ethereum layer 2 development firm that uses ZK-rollups technology, raised $50 million in the C round of financing and is now valued at $2 billion.

The round was led by Sequoia Capital. Paradigm, Three Arrows Capital, Alameda Research, IOSG Ventures, Founders Fund, etc participated.

The C round brings StarkWare’s total funding to date to $162 million.

As opposed to Optimistic rollups, ZK-rollups generate zero-knowledge proofs for validating transactions.

StarkEx and StarkNet

StarkWare’s Ethereum scaling engine StarkEx is used by several crypto projects, including dYdX, Sorare, and Immutable. Kolodny said StarkEx has settled over $200 billion worth of trades, facilitating about 50 million transactions and serving hundreds of thousands of users at “dramatically cheaper” gas costs.

StarkWare is now set to launch StarkNet Alpha on mainnet Ethereum by the end of this month, said Kolodny.

The key difference between StarkEx and StarkNet is that the former is a permissioned tailor-made scaling engine, while the latter is a permissionless decentralized ZK-rollup that supports independent deployment of smart contracts.

CuaeMSf2s6

— StarkWare (@StarkWareLtd) November 16, 2021

This news comes ahead of the launch of StarkNet Alpha 2, an upgrade to its Zero-Knowledge Rollup technology, or ZK-Rollup, on Ethereum Mainnet which is currently scheduled for deployment by the end of November. The company said that StarkNet Alpha plans to support permissioned smart contract deployment, opening up the scaling technology to whoever wants to build on it.

StarkWare is among the few Layer-two scaling protocols for Ethereum that have recently surged in adoption despite the climb in gas prices.
Its StarkEx L2 scalability engine has allowed partners, such as trading platform dYdX, to submit on-chain trades in ZK-Rollups. This minimizes trading fees by reducing the amount of gas.

CuaeMSf2s6— StarkWare (@StarkWareLtd) November xvi, 2022

This news comes ahead of the launch of StarkNet Alpha 2, an upgrade to its Zero-Knowledge Rollup technology, or zk-Rollup, on Ethereum mainnet, which is currently scheduled for deployment by the end of November. The company said that StarkNet Alpha plans to support permissioned smart contract deployment, opening upward the scaling engineering to whoever wants to build on it.

StarkWare is among the few layer-two scaling protocols for Ethereum that have recently surged in adoption despite the climb in gas prices. Its StarkEx L2 scalability engine has allowed partners, such as trading platform dYdX, to submit on-chain trades in zk-Rollups. This minimizes trading fees by reducing the corporeality of gas.

  • “We’re starting a blockchain building boom,” say company Co-founders
  • Blockchain bandwidth is too small to meet ever-growing demand
  • StarkWare scaling tech solves this; inspires further $50M investment and new valuation
  • TEL AVIV, Nov. 16, 2021 /PRNewswire/ — StarkWare, the company promising crypto apps for all, has secured $50 million in a funding round led by Sequoia Capital, valuing the company at $2 billion.

    The Series C funding comes just seven months after a $75 million Series B round — reflecting the importance of scaling blockchain for wider use in the modern economy.

    “Blockchains today simply can’t handle the volume of transactions required for mass use,” said Eli Ben-Sasson, Co-founder and President at StarkWare.

    That means with StarkNet, any developer can write and deploy their smart contracts permissionlessly.

    StarkWare hopes to bring “crypto apps for all” with StarkNet. StarkWare’s other co-founder Eli Ben-Sasson said in the interview that StarkNet will help make blockchain technology “usable by a much wider population.”

    Several projects have committed to building on StarkNet, including MakerDAO, Aave, and Argent, said Kolodny.

    When asked whether Uniswap is looking to partner with StarkWare, Ben-Sasson said, “we’re very hopeful that Uniswap will join us, but that’s up to their governance process to do that.” Uniswap currently uses Ethereum Layer 2 scaling solutions from Optimism and Arbitrum that use optimistic rollups.

    When token?

    StarkWare’s Series C round comes just seven months after its $75 million Series B round in March.

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