thenewscrypto.com
- The company uses Rollup technology in its Ethereum layer-2 scaling solutions.
- Ben-Sasson said investors were drawn to StarkEx’s capabilities.
Despite the current fall in cryptocurrency markets, Ethereum (ETH) layer-2 developer StarkWare has secured an additional $100 million in its latest financing round. After just six months after its Series C financing round in November 2021, StarkWare’s Series D fundraising round sees the business valued at $8 billion. Greenoaks Capital, Coatue, Tiger Global, and other investors participated in the newest financing round.
With higher transaction throughput than the Bitcoin network in 2022, StarkWare has established itself as a prominent participant in Ethereum’s layer-2 scaling sector. The company uses Rollup technology in its Ethereum layer-2 scaling solutions. StarkWare claims to be able to add enormous amounts of transactions to Ethereum’s mainnet by creating validity proofs, often known as zero-knowledge proofs.
Expanding Companies Ecosystem
Cryptography pioneer Eli Ben-Sasson and other computer scientists developed the ZK-STARK algorithm. In order to provide security, scalability, and resistance to quantum computing, the Zero-Knowledge Scalable Transparent Arguments of Knowledge (ZKSTAK) proof system uses new-age encryption.
Popularity has been shown for the technology that powers StarkWare’s two platforms: the StarkEx and the StarkNet networks. Sorare, ImmutableX, and dYdX all employ the StarkEx scaling engine, while StarkNet is a decentralized network for developing new applications.
The new $100 million in funding from StarkWare will be used to expand the company’s ecosystem around the software tools it is creating. Additionally, Ben-Sasson said investors were drawn to StarkEx’s capabilities, which will continue to be a primary focus for the company.
According to Ben-Sasson, co-founder and president of StarkWare, STARK reduces costs by lowering the amount of information transferred to the Ethereum blockchain and speeds up transactions by reducing blockchain congestion. Nearly half a trillion dollars have been exchanged on StarkEx, its platform for compressing transactions before they are added to the Ethereum blockchain.