What is Starknet (STRK)?

Summary

Starknet is an Ethereum Layer-2 network that uses STARK proofs to process transactions more efficiently while relying on Ethereum for settlement. Its native token, STRK, is used for network fees, staking, and governance. Starknet is built with Cairo, a programming language designed for provable computation. The network supports applications across areas such as decentralized finance, gaming, and infrastructure. Investors can buy and sell STRK through an iTrustCapital Premium Custody Account for everyday investing or a tax-advantaged Crypto IRA.*

Eth Congestion with high gas fees and slow transactions

What is Starknet?

As blockchain adoption accelerates, the demand for faster, cheaper, and more scalable networks has never been higher. Ethereum, home to thousands of decentralized applications, proved what was possible with smart contracts, but its popularity brings challenges. Heavy network congestion, high gas fees, and slower transaction times made it increasingly difficult for everyday users and developers to build at scale.

These limitations opened the door for a new generation of technologies built not to replace Ethereum, but to supercharge it. Among them, Starknet has emerged as a leader in next-generation cryptography and Layer-2 scalability.

Starknet uses zero-knowledge STARK proofs to batch and verify transactions off-chain. STARK stands for Scalable Transparent Arguments of Knowledge, a type of zero-knowledge proof that is post-quantum resistant and requires no trusted setup. This allows Starknet to dramatically reduce costs and increase throughput without sacrificing Ethereum's underlying security.

Unlike traditional scaling solutions that rely on fraud proofs or trusted setups, Starknet's STARK-based system is highly secure (post-quantum resistant), mathematically verifiable, efficient (supporting large volumes of transactions), and transparent as STARKs require no trusted initial setup.

Starknet runs on the Cairo Virtual Machine (Cairo VM), a purpose-built environment optimized for next-generation decentralized applications across DeFi, gaming, infrastructure, and emerging "app-chain" ecosystems. Cairo enables developers to build applications that would be too computation-heavy or expensive to run on Ethereum Layer-1 alone.

Starknet Key Facts at a Glance

Attribute	Details
Founded	2018
Founders	Eli Ben-Sasson, Alessandro Chiesa, Michael Riabzev, Uri Kolodny
Native Token	STRK
Proof Type	STARK (Zero-Knowledge)
Network Type	Layer-2 (Ethereum)
Total Supply	10 billion STRK

The History of Starknet

Starknet was developed by StarkWare Industries, a cryptography-focused company founded in 2018 by Eli Ben-Sasson, Alessandro Chiesa, Michael Riabzev, and Uri Kolodny. The company's mission has always centered around leveraging zero-knowledge technology to solve blockchain scalability.

Early Origins: StarkEx

Before Starknet existed, StarkWare launched StarkEx in 2020, a specialized scalability engine used by major projects including:

dYdX
Immutable X
Sorare
RhinoFi (formerly DeversiFi)

StarkEx proved the reliability and efficiency of STARK-based systems at scale.

Transition to Starknet

As demand for general-purpose computation grew, StarkWare introduced Starknet, a fully permissionless Layer-2 network designed for all developers. Initial versions rolled out through 2021 and 2022, with continuous upgrades improving performance, decentralization, and developer resources.

Protocol Evolution Timeline

Date	Milestone
2018	StarkWare Industries founded
2020	StarkEx launched
2021–2022	Starknet initial versions rolled out
September 1, 2025	Version v0.14.0 introduced mandatory STRK fee payments

Since launch, Starknet has introduced multiple major upgrades. One notable update, version v0.14.0 (September 1, 2025), introduced mandatory fee payment in STRK rather than ETH. This shift aligned economic incentives with the network's native currency and supported the ongoing decentralization of sequencers.

Interoperability & App-Chain Vision

The Starknet roadmap includes expanding interoperability across:

Ethereum
Other Layer-2 networks
Sovereign rollups
App-specific chains built using Cairo

This positions Starknet not only as a scaling solution for Ethereum, but also as a universal execution layer for a multi-chain future.

STRK: The Native Token

STRK is the native token of the Starknet protocol and serves as the foundation of the network's economic and governance framework. The token has three primary use cases:

Transaction Fees: All transaction fees on Starknet must be paid in STRK (as of v0.14.0)
Staking: Holders can stake STRK to secure the network and earn rewards
Governance: Token holders can vote on protocol upgrades and network decisions

Staking & Sequencing

Staking STRK plays a central role in how Starknet stays secure and decentralized. Holders can either stake their tokens directly or delegate them to sequencers and validators, the participants responsible for ordering transactions and keeping the network running smoothly. By staking, users help support the overall health of the ecosystem and, in return, can earn rewards for their contribution. It's a system designed so that the people who back the network also benefit from its growth, creating a long-term alignment between token holders and the protocol itself.

Tokenomics & Supply

STRK has a total supply of 10 billion tokens. The tokenomics are built to make the token a core part of Starknet's daily activity. After the protocol update v0.14.0, all transaction fees on Starknet must be paid in STRK rather than ETH, a change that ties the token directly to network usage and strengthens its utility. The broader token model aims to balance supply, staking incentives, and ecosystem rewards in a way that encourages sustainable growth. By connecting key roles like sequencing, proving, and network participation to STRK, the protocol ensures that the token remains closely linked to Starknet's ongoing development and overall performance.

Governance

STRK also gives holders a voice in how Starknet evolves. Through on-chain governance, users can vote on proposed upgrades, changes to economic parameters, or new directions for the protocol's roadmap. This setup keeps decision-making transparent and grounded in community input, rather than centralized control. As Starknet becomes more decentralized and its user base expands, governance will continue to shape major milestones, from technical improvements to long-term strategic decisions, making STRK an important tool for guiding the network's future.

Starknet vs. Other Ethereum Layer-2 Solutions

Feature	Starknet	Optimism	Arbitrum	zkSync
Proof Type	STARK (ZK)	Optimistic Rollup	Optimistic Rollup	ZK-Rollup
EVM Compatibility	Cairo VM (EVM-compatible via transpilation)	Fully EVM-compatible	Fully EVM-compatible	EVM-compatible
Trusted Setup	No	N/A	N/A	No
Post-Quantum Resistant	Yes	No	No	No
Finality Time	Minutes (proof generation)	~7 days (challenge period)	~7 days (challenge period)	Minutes (proof generation)

Buy & Sell Starknet (STRK) at iTrustCapital

If you're interested in buying and selling Starknet (STRK), you can do so in a secure Premium Custody Account or tax-advantaged Crypto IRA* at iTrustCapital.

Click here to open an account today!

*Some taxes may apply.

Frequently Asked Questions (FAQs)

What is Starknet?

Starknet is a validity rollup, commonly described as an Ethereum Layer-2 network, that uses STARK proofs to verify transactions. It processes activity outside Ethereum’s main execution layer and submits proofs and data to Ethereum for settlement. This approach is intended to increase capacity and reduce transaction costs while drawing security from Ethereum.

How does Starknet work?

Starknet groups transactions together and generates a cryptographic STARK proof showing that the resulting state change is valid. Ethereum verifies that proof instead of re-executing every Starknet transaction individually. Starknet applications run using Cairo and the Cairo Virtual Machine rather than the Ethereum Virtual Machine.

What is STRK used for?

STRK is Starknet’s native token and is used to pay transaction fees on the network. It also supports staking and participation in Starknet governance. These functions and the protocol’s economic rules may continue to change through network development and governance decisions.

Can Starknet transaction fees be paid with ETH?

No. Since Starknet version 0.14.0 was released on September 1, 2025, transaction fees on Starknet have been payable only in STRK. Before that update, the network supported fee payments in ETH and STRK.

Is Starknet EVM-compatible?

Starknet is not natively EVM-compatible because it uses Cairo and the Cairo Virtual Machine instead of Ethereum’s Solidity and EVM environment. Developers may use third-party compatibility tools or transpilers to adapt some Ethereum applications, but this is different from native EVM compatibility. This distinction is important when comparing Starknet with networks such as Arbitrum and Optimism.

Does STRK have a fixed total supply?

STRK launched with an initial token supply of 10 billion. However, Starknet’s official documentation explains that supply can increase through protocol minting mechanisms, including staking or block rewards. It is therefore more accurate to describe 10 billion as the initial supply rather than a permanently fixed maximum supply.

Is Starknet secure?

Starknet uses STARK proofs and relies on Ethereum for data publication and settlement, but no blockchain network or digital asset is risk-free. Smart-contract vulnerabilities, protocol changes, network dependencies, and other technical risks may affect users. Investors should research these risks before buying STRK or interacting with Starknet applications.

How can I buy STRK through iTrustCapital?

Eligible investors can buy and sell STRK through an iTrustCapital Premium Custody Account or Crypto IRA. The Premium Custody Account is designed for everyday, non-retirement investing, while the Crypto IRA is intended for tax-advantaged retirement investing.* Account availability, supported assets, and eligibility requirements may apply.

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