What is Starknet?
Starknet (STRK) is a permissionless, decentralized layer-2 scaling solution for the Ethereum blockchain. It uses zero-knowledge rollup technology, specifically STARK proofs, to validate transactions off-chain and submit them to the Ethereum mainnet, increasing scalability and reducing fees. The STRK token facilitates transactions, governance, and staking on the network.
How is Starknet used?
1. The Starknet (STRK) cryptocurrency is used in several ways within the Starknet ecosystem:
Payment of Fees: STRK is used to pay transaction fees on the Starknet network, providing an alternative to Ethereum (ETH) for fee payments. This allows users to choose between paying fees in STRK or ETH, offering flexibility and potentially reducing costs for network interactions.
2. Governance: STRK token holders can participate in governance decisions affecting the Starknet protocol. This includes voting on various issues that shape the network’s development, policy, and future direction. Users can either directly participate or delegate their votes to reliable representatives of the network.
3. Staking: STRK will be used within a proof-of-stake (PoS) model that underpins the network’s security and decentralization. By staking STRK, users can support the network’s operation, contribute to its security, and in return, receive rewards. This staking mechanism is designed to select among a decentralized network of sequencers, ensuring that Starknet remains secure, efficient, and resistant to centralization.
These uses of STRK are integral to the functioning and growth of the Starknet ecosystem, enhancing its scalability, security, and user adoption.
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