With these USD $ 50 million, Starkware now it is valued above USD $ 2 billion and is listed as one of the most reputable startups within the ecosystem of Ethereum.
StarkWare, the developer of solutions based on Ethereum, announced the raising of some USD $ 50 million in a new round of financing, with which the company is valued at approximately USD $ 2 billion.
Starkware raises another $ 50 million
As such, Starkware has gained much relevance in recent times precisely for working on one of the solutions to help with the scalability problems present in the Blockchain from Ethereum, which is known as the ZK-Rollups and whose proposal contemplates creating a mechanism to group transactions and send them through an external channel to the network, allowing a much faster and cheaper process compared to traditional operations.
In relation to this round of StarkWare, reports suggest that it had the participation of Paradigm, Three Arrows Capital, Alameda Research and Founders Fund, leadered by Sequoia Capital.
We are excited to announce our Series C of $ 50M at $ 2B.
A big thanks to our lead investor, @sequoia, our wonderful follow-on investors, and the dozens of ecosystem partners and collaborators who participated in this round, for their vote of confidence in our products and tech. pic.twitter.com/CuaeMSf2s6
– StarkWare (@StarkWareLtd) November 16, 2021
Between plans Starkware is the release soon of StarkNet Alpha, a test network that will support permissionless smart contracts, enabling interaction between the contracts drawn up at the different levels available in the product.
Problems with scalability Ethereum
The way he goes Starkware generates many expectations among developers and programmers who operate on the network of Ethereum, since the Rollups they are emerging as the safest solutions to address scalability and operations cost issues.
There are currently Rollups of two types:
Kind of Rollup in which the aggregator puts funds as collateral and compiles a series of transactions that is subsequently sent to the main layer of Ethereum. Here, the smart contract that the operations group receives does not audit whether they are okay or not, but an external auditor can review these and determine if everything is going as expected.. The process takes about seven days, and if everything goes according to expectations, the transactions are processed.
Unlike Optimistic Rollup, here the operation is performed immediately and there is no need to wait for such a long period for the corresponding verification. However, the main problem associated with this solution is the fact that it is very complex at the coding level, so it is very difficult to adjust it according to the needs of each project interested in implementing it since the code cannot be pasted directly used over the main coat.
Version by Angel Di Matteo / DailyBitcoin
Picture of Unsplash