Ethereum Layer 2 developer StarkWare reaches $8 billion

StarkWare, one of the companies working on scaling Ethereum using Zero-Knowledge Rollups, has announced it had raised another $100 million on Wednesday.

The new funds brings Starkware’s valuation to $8 billion.

The Series D funding round comes six months after the Tel Aviv-based firm closed a $50 million Series C raise at a $2 billion valuation.

Greenoaks Capital and Coatue led the raise, while crypto investing titan Tiger Global also participated alongside a host of other investors.

StarkWare uses its own type of Zero-Knowledge Rollups called scalable transparent arguments of knowledge—otherwise known as STARKs.

With STARKs, StarkWare can create a second layer on top of Ethereum where transactions are “rolled up” together and sent back to mainnet for confirmation.

STARKs inherit the security and decentralization of Ethereum mainnet while reducing gas fees by many orders of magnitude and offering near-instant transaction finality.

StarkWare is not the only Layer 2 project to make headlines in recent weeks. Optimism, an Optimistic Rollup-based Layer 2 network, announced the launch of its OP token in April and is set to distribute it to early users through an airdrop.

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