Advancements and Challenges in StarkNet

Starknet

StarkNet was developed to enhance the scalability, security, and efficiency of cryptocurrencies. This cryptocurrency utilizes algorithms that process transactions without calculating each one on the blockchain. This approach significantly reduces network load and speeds up transaction processing.

Zero-Knowledge proofs, which underpin StarkNet, work on the principle that the proving party can generate a proof satisfying two conditions: it shows the correctness of the statement without disclosing any unnecessary information. The receiving party can then verify the proof and its accuracy without knowing any additional details. Simply, this means one party can convince another of their statement’s accuracy without revealing confidential data.

The StarkNet Layer-2 token from StarkWare offers several notable advantages:

  1. Scalability. With Zero-Knowledge proofs technology, StarkNet can handle large transaction volumes, making it highly scalable.
  2. Security. StarkNet provides a high level of security for users due to its zero-knowledge proof encryption.
  3. Efficiency. Using the Layer-2 principle can significantly reduce fees and speed up transaction processing time on the blockchain.

However, the StarkNet token has some drawbacks:

  1. Complexity of use. Like many other multi-level blockchains, it can be challenging for the average user to understand Zero-Knowledge proofs technology, which may hinder platform adoption.
  2. Lack of publicity. This is a common issue with all Layer-2 tokens. Since the STRK token recently entered the market, it hasn’t received widespread recognition to attract new traders yet.

Listing on the exchange

After listing on the exchange, the token’s price surges and then sharply drops due to various factors. The main reasons include active speculation driven by frequent airdrops and price manipulation, which are still common in ICOs. However, news about the project and other external factors, such as cashing out after a pump, play a significant role in the current recovery.

Parallelization

Parallelization, which StarkNet plans to implement in 2024, can significantly increase the platform’s performance and scalability. This could attract more users and increase the token’s demand, potentially raising its value.

ZKThreads for ZK-applications

ZKThreads, developed by StarkWare in partnership with Cartridge, will enhance the scalability and performance of ZK applications on the StarkNet platform. This can attract developers and expand the project’s ecosystem, positively impacting the StarkNet token’s value.

StarkNet is a unique project that integrates advanced blockchain and cryptocurrency technologies. Its high speed, security, and scalability make it an ideal solution for anyone interested in using cryptocurrency daily.

For the token’s value, it is crucial not to fall below the main support of $1.100. At the same time, breaking out of consolidation in the side channel and surpassing the level of $1.350 is necessary. This consolidation is also an accumulation phase, where the upper and lower edges of the volume profile are marked by levels. Going beyond them will signify an exit from accumulation and the beginning of distribution. If this resistance is broken, we can expect a move to the $1.800 level.

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