Scalability remains a major challenge for blockchains, especially Ethereum. As the number of users and transactions on a blockchain network increases, speed slows, and costs rise. This is where Ethereum scaling solutions, such as Starknet, come into play. Starknet is designed to enhance the speed and affordability of Ethereum transactions.Starknet is a validity rollup, commonly known as a zk-rollup, that functions on the Ethereum network.
Founded in 2018, StarkWare is backed by high-profile investors, including Sequoia Capital, Paradigm and Coatue. The company was valued at $8 billion when it raised $100 million in a Series D funding round in May 2022. StarkWare has raised a total of $261 million in funding to date.As a Layer 2, Starknet processes transactions on its network and settles them on Ethereum to enhance scalability.