Starknet leads the ZK Rollups: Decentralisation Phase 1
Starknet reaches 'Phase 1' of decentralisation according to Vitalik Buterin, becoming the largest ZK rollup by total blocked value.
The Ethereum Layer 2 scaling platform, Starknet, has reached the decentralisation milestone labelled by Ethereum co-founder Vitalik Buterin as "Phase 1", becoming the largest zero-knowledge proof based network by total blocked value (TVL).
In a press release, Starknet said it has reached 'Phase 1' of decentralisation according to the framework outlined by Buterin in 2022, meaning the network will operate with limited supervision or 'support wheels'.
Starknet added that the framework represents "the gold standard of on-chain tools for analysing Ethereum scaling solutions" and said it had achieved this milestone through changes such as the creation of a security council and censorship prevention mechanisms.
Although the system still allows for security council intervention, a fully functional proof-of-validity system has been implemented and governed by smart-contracts.
According to L2beat, Starknet has become the largest ZK rollup blockchain, with a total blockchain value of $629 million, narrowly surpassing ZKsync with $610 million. It is currently the only Layer 2 network based on ZK rollup to have reached 'Phase 1'.
Starknet is the fifth largest Layer 2 network by blocked value. The first four use optimistic rollups and have reached "Phase 1" of decentralisation with fraud proofs.
The Layer 2 networks classified by TVL. Source: L2beat
The fraud proofs suggest that transactions are considered invalid until proven otherwise, while the proofs of validity imply that they are only valid if proven by cryptographic evidence.
"Our goal is to completely remove the support cogs and reach the second phase of decentralisation on Ethereum, while also continuing to work on Bitcoin," said Eli Ben-Sasson, co-founder and CEO of StarkWare, the developer of Starknet.
The "Phase 2"of decentralisation is the point at which the network becomes fully autonomous and community-governed. According to L2beat, only three small Layer 2 platforms have reached this stage.
In 2022, Buterin presented the idea of "support wheels", a three-stage metaphor for Ethereum scaling projects in various stages of development. This image describes the gradual process of transition from centralised control to fully communal governance. Many Layer 2 solutions are still in the early stages, depending on centralised components for security or updates. Reaching Stage 2 requires robust and trustless mechanisms to enable the protocol to operate autonomously, including decentralised sequencers, governance, and fraud or validity proof systems, which are critical for long-term scalability and security.
Base Leads the Layer 2 Ecosystem
Coinbase's Layer 2 network Base leads the industry in total locked-in value, with $14.7 billion, representing an impressive 33% market share. In comparison, competing networks such as Starknet lag behind with just 1.4% market share. The total LTV of the entire Layer 2 ecosystem amounts to $44.2 billion.
This number has increased thanks to the strong price rally of Ethereum after the Pectra upgrade, but still remains down 20% since the beginning of the year. Base's solid position underlines its growing influence in scaling Ethereum, attracting users and developers with lower fees and faster transactions.
Tom Lee's BitMine strategically accumulates 72,000 ETH ($281M) in the recent crash, bringing its holdings to 3.03M ETH. The institutional accumulation pushes exchange reserves to lows. Tom Lee and Arthur Hayes predict massive price increases, seeing ETH between $10,000 and $15,000.
The Ethereum Layer 2 scaling platform, Starknet, has reached the decentralisation milestone labelled by Ethereum co-founder Vitalik Buterin as "Phase 1", becoming the largest zero-knowledge proof based network by total blocked value (TVL).
In a press release, Starknet said it has reached 'Phase 1' of decentralisation according to the framework outlined by Buterin in 2022, meaning the network will operate with limited supervision or 'support wheels'.
Starknet added that the framework represents "the gold standard of on-chain tools for analysing Ethereum scaling solutions" and said it had achieved this milestone through changes such as the creation of a security council and censorship prevention mechanisms.
Although the system still allows for security council intervention, a fully functional proof-of-validity system has been implemented and governed by smart-contracts.
According to L2beat, Starknet has become the largest ZK rollup blockchain, with a total blockchain value of $629 million, narrowly surpassing ZKsync with $610 million. It is currently the only Layer 2 network based on ZK rollup to have reached 'Phase 1'.
Starknet is the fifth largest Layer 2 network by blocked value. The first four use optimistic rollups and have reached "Phase 1" of decentralisation with fraud proofs.
The fraud proofs suggest that transactions are considered invalid until proven otherwise, while the proofs of validity imply that they are only valid if proven by cryptographic evidence.
The "Phase 2"of decentralisation is the point at which the network becomes fully autonomous and community-governed. According to L2beat, only three small Layer 2 platforms have reached this stage.
In 2022, Buterin presented the idea of "support wheels", a three-stage metaphor for Ethereum scaling projects in various stages of development. This image describes the gradual process of transition from centralised control to fully communal governance. Many Layer 2 solutions are still in the early stages, depending on centralised components for security or updates. Reaching Stage 2 requires robust and trustless mechanisms to enable the protocol to operate autonomously, including decentralised sequencers, governance, and fraud or validity proof systems, which are critical for long-term scalability and security.
Base Leads the Layer 2 Ecosystem
Coinbase's Layer 2 network Base leads the industry in total locked-in value, with $14.7 billion, representing an impressive 33% market share. In comparison, competing networks such as Starknet lag behind with just 1.4% market share. The total LTV of the entire Layer 2 ecosystem amounts to $44.2 billion.
This number has increased thanks to the strong price rally of Ethereum after the Pectra upgrade, but still remains down 20% since the beginning of the year. Base's solid position underlines its growing influence in scaling Ethereum, attracting users and developers with lower fees and faster transactions.
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