Previous zk-rollups have used a technology called zk-SNARKS. However, Starknet’s innovation is called the Scalable, Transparent Argument of Knowledge (STARK). A zk-STARK uses two components—sequencers and provers—to mathematically validate transactions, create a STARK proof, and then communicate with smart contracts on Ethereum’s mainnet to formally record transactions. Starknet also uses its own coding language called Cairo, which is intended to make development more accessible to programmers.

Most blockchains adopt the strategy of a zero knowledge providence that comes with the development of the blockchain and its Dapps on Solidity, while Starknet made its own path with the creation of Cairo, a unique language for the zk-rollup narrative.

As Cairo is a new programming language, developers that would like to start coding for Starknet may be put off from doing so as they would have to learn Cairo. Luckily smart contracts written for Ethereum can be converted into Cairo using a “transpiler”, like Nethermind’s Warp, but they won’t be fully optimized for Starknet.

Pillar Behind Starknet Blockchain

Starknet has been developed by StarkWare, the team behind StarkEx and STARKs. StarkEx is another type of scaling solution for Ethereum, but it is designed for specific applications, whereas Starknet is designed to be general purpose.

StarkWare has received funding from the Ethereum Foundation and top-tier investors, such as Paradigm, Sequoia, and Vitalik Buterin.

Starknet has been live since November 2021.

StarkWare’s first product was StarkEx, a permissioned scaling solution introduced in 2020 that uses the same zk-STARK technology behind Starknet.

Looking forward to the DApps on Starknet Ecosystem, we will dive in from the wallets aspect.

Wallets on Starknet Ecosystem

In every blockchain, a wallet is your gateway to access everything it has to offer.

On Starknet, there are two major wallets, Argent X and Bravoos Wallet. Argent X is the most popular and only open-source wallet for Starknet Ecosystem.

DeFi on Starknet

You can not define Decentralized Finance on Starknet Ecosystem without the following DApps.

1. Ekubo

   StarkNet’s leading AMM. It’s a decentralised exchange (DEX) that has dominated since its launch in 2023. Known for its super-concentrated liquidity and extensibility. Currently with its points rewarding system, for every transaction you make, you get a point which is exchanged to their native token which runs on Starknet.(https://ekubo.org/)

2. AVNU

   AVNU is Starknet’s leading DEX aggregator. Get the best execution on your swap. Also natively integrated within Argent. (https://www.avnu.fi/)

3. zkLend

   Your go-to for smart lending and borrowing. It’s the native L2 money-market protocol built on Starknet. zkLend offers a dual solution: a permissioned and compliance-focused solution for institutional clients, and a permissionless service for DeFi users - all without sacrificing decentralization. (https://zklend.com/)

4. LayerSwap

   An easy-to-use bridge for transferring crypto instantly, from one network to another at a low cost. Move crypto across exchanges, blockchains and wallets. (https://www.layerswap.io/)

NFT Marketplace on Starknet

1. Briq

   An NFT construction protocol based around fundamental elements called briqs. You can use briqs to build whatever you can imagine, and you can just as easily disassemble whatever you build for the underlying briqs to build something new. (https://briq.construction/)

Gaming Projects on Starknet

1. Influence

   Explore an expansive open-economy, space strategy MMO. Colonize asteroids, build infrastructure, discover technologies, and engage in combat! (https://www.influenceth.io/)

2. Realms

   A fantasy multiverse of fully on-chain games. All Realms games operate on Starknet, allowing for quick and secure transactions and players to own in-game assets like NFTs in a self-governing world. (https://realms.world/)

Identification System on Starknet Ecosystem

1. Starknet.ID

   A decentralised identity provider on Starknet. It allows you to create your Starknet identity and attach things to it (like an on-chain passport). It can be used by all Starknet protocols. (https://app.starknet.id/)

With the updates Dapps listed above, can kickstart your journey as a Starknet User.

A simple step by step will certainly get you started on the next part of profitable trading on Starknet.

The Bridge

Every L2 Scaling Solution have an official bridge that users who want to interact with protocols move most of their assets in other for smooth interaction.

Step 1. Visit https://starkgate.starknet.io/

Step 2. Connect your funded MetaMask (Ethereum) wallet and Argent or Bravoos wallet for Starknet.

Step 3. Input the desired amount you wish to bridge.

Step 4. Click on deposit and confirm transaction.

Grab a bowl of popcorn as we make profit.

DEX: What is a DEX?

A Decentralized exchanges, also known as DEXs, pair buyers and sellers easily so that they can swap their cryptocurrency without needing to trust an intermediary, each other or middleman.

DEXs are fully non-custodial, as only you are in control of your funds, hence the name Decentralized Exchange, and not a centralized exchange like Coinbase or Binance.

There are several DEXs on Starknet Blockchain, but we let us keep our focus on JediSwap.

Swapping tokens on JediSwap is easy. If you’ve used Uniswap or other AMMs in the past, then you’ll be familiar with the process.

Step 1. Visit https://app.testnet.jediswap.xyz

Step 2. Connect your Argent X wallet.

Step 3. Select the token you want to sell and the token you want to buy (ETH for DAI for example)

Step 4. Click Swap… Boom,you've just made a trade on Starknet.

Congratulations on your first trade on Starknet.

Starknet is one of many layer-2 scaling solutions (L2s) for Ethereum. There are multiple approaches to increasing transaction speeds and decrease costs, but one of the most popular has become zk-rollups.

However, Starknet’s innovation is called the Scalable, Transparent Argument of Knowledge (STARK). A zk-STARK uses two components—sequencers and provers—to mathematically validate transactions, create a STARK proof, and then communicate with smart contracts on Ethereum’s mainnet to formally record transactions. Starknet also uses its own coding language called Cairo, unlike the general coding language of Ethereum called Solidity, which is intended to make development more accessible to programmers.

The Development of Starknet

Starknet was developed by StarkWare Industries, an Israeli tech company founded in 2018 by Eli Ben-Sasson, Uri Kolodny, Michael Riabzev, and Alessandro Chiesa.

StarkWare ultimately aiming to help scale Ethereum, decided to build its own permissionless L2, and that effort culminated in the publishing of Starknet’s genesis block in November 2021. They created a native coin named (STRK), which began trading and became publicly available in February 2024.

How Starknet Processes Transactions

Due to the purpose of blockchain is to make all interactions decentralized and trustless, off-chain processing must be validated in a similarly trustless way. Starknet accomplishes this by using a Scalable, Transparent Argument of Knowledge (STARK) proof, which was first introduced in 2018.

The Two Main Components of Starknet

Sequencers: The sequencer process transactions and validate it,before it will be released to the Mainnet.

Provers: They organize blocks in groups and process them in parallel, which makes the process faster.

The zk-STARK mechanism involves sequencers and provers who are responsible for ensuring off-chain computation is verifiably accurate, and “bad’ data does not reach the Ethereum mainnet.

Fundamentals on how to start trading on Starknet Blockchain coming next up.

30,000,000 $OP is set out to be distributed to this projects and individuals, which will be solely allocated by the Optimism Badgeholders, they get to decide how much OP a project gets.

Clearly, it is stated that for each project to get rewarded, it should have a minimum of 17 votes from the Badgeholders and have an allocation above 1500 $OP else, their will be no payout.

Check out https://round3.optimism.io and https://vote.optimism.io for a look at participating projects.

From Nov 6th - 20th Nov. The Badgeholders are expected to categorize each project by adding them to a list, which will make it easy for voting and knowing the rate of impact to the community.

From Nov. 20th - Dec 7th 2023, the Badgeholders are expected to vote on this projects or individuals.

Congratulations 👏🎉 to Syke as it is among the selected individuals that have made an impact. We hope for the Badgeholders to vote on us for our past works.

How To Participate

Step 1: Create a new collection of onchain artwork and deploy it to OP Mainnet utilizing one of the marketplace partners.

Step 2: Visit the contest site & submit your art: https://welovetheart.optimism.io

Boom 💥 you are a participant already.

Simply ensure that your work is distinctive in other to be among the 184 that will receive the prizes.

How The Prizes Will be Distributed

The 1,000,000 OP prize pool is evenly split among four distinct categories, each with the same four prize tiers, for a max total of 184 potential prize winners.

Please note that each winner will need to pass KYC in order to receive their prize.

- 1st tier: 50K OP prize (1 winner per category)

- 2nd tier: 20K OP prize (5 winners per category)

- 3rd tier: 7K OP prize (10 winners per category)

- 4th tier: 1K OP prize (30 winners per category)

Submissions will then be reviewed by a handful of respected judges in the NFT space.

Winners will be announced shortly after judging concludes.

Deadline is 13th December 23:00 UTC

Alright guys get to work!!!

Utility

To be eligible for inclusion in the OP Stack, any software must actively contribute to empowering the Optimism Collective. This requirement serves as a guiding principle for determining the suitability of components for the stack. For example, a robust open-source block explorer that facilitates user inspection of the Superchain would be a valuable and welcome addition to the OP Stack.

While utility remains a key consideration for OP Stack inclusion, it is equally important to embrace experimentation and creativity. There’s room for audacious ideas and unconventional projects. Don’t hesitate to venture into uncharted territories and develop something innovative that has never been attempted before, even if its immediate utility isn’t apparent. The overarching philosophy is to have an enjoyable and stimulating journey while fostering a thriving ecosystem within the Optimism Collective.

Simplicity

Incorporating complex code into the OP Stack is avoided, as simplicity is favored. By prioritizing simplicity, the Optimism Collective minimizes engineering overhead, allowing more time and effort to be devoted to developing new features instead of duplicating existing ones. Utilizing battle-tested code and infrastructure whenever possible is an essential aspect of this approach, as demonstrated by the preference for Geth as the OP Stack’s default execution engine.

Simplicity is a key factor in enhancing security and maintainability, especially when dealing with critical infrastructure. Every line of code introduces the potential for bugs and vulnerabilities, so a straightforward protocol with less code reduces the surface area for potential mistakes. Moreover, a clean and minimal codebase fosters greater accessibility for external contributors and auditors, ensuring the utmost security and accuracy for the OP Stack.

Extensibility

The strength of good OP Stack code lies in its inherent openness, collaboration, and extensibility. Emphasizing collaboration enables us to break free from isolated development approaches. Through collaborative efforts, we can invest more time in building upon each other’s work and less time reinventing the same components repeatedly. Collaboration is the key to our collective success.

Extensible code is crafted with the foresight that others will want to build and expand upon it. In practice, this means adhering to open-source principles with permissive licensing, offering clean and accessible APIs, and ensuring modularity to enable other developers to easily extend the code’s functionality. Extensibility serves as a fundamental design principle that empowers collaboration within the Optimism Collective ecosystem, unleashing its full potential.

Watch out as I talk about the OP Stack Layers.

The OP Stack represents an established and open-source development framework utilized by Optimism, a project maintained by the Optimism Collective. This standardized stack serves as a public resource for both the Ethereum and Optimism ecosystems. Its primary function is to power Optimism by providing a set of software components, currently utilized in Optimism Mainnet, and eventually, in the Optimism Superchain and its governance. The vision behind the OP Stack is to encourage innovation within the Ethereum community. By offering a user-friendly platform, developers can focus on cutting-edge advancements, simplifying the process of creating their own blockchains.

One of the core aspects of the OP Stack is its modular blockchain theory, which future-proofs the ecosystem. The stack abstracts the proof layer when settling funds onto another chain. As long as the proof layer satisfies the proof API, it can be seamlessly incorporated into the system without affecting the user experience. This adaptability opens up possibilities for Optimism to accommodate newer proof systems in the long run.

I will be extensively dropping another article on The Three Key Designs of OP Stack.

How To Use Optimism.

Before we look into the dapps, we will learn how to bridge in and bridge out funds into Optimism Chain using the native bridge and other protocols.

1. Connect to the official Optimism Bridge or other protocols with an Optimism Bridge Feature.

2. Transfer ETH which you can get at Centralized Exchanges, like Binance, OKX and Coinbase amongst others.

3. Proceed by adding Optimism network to your wallet. You can do so by visiting the official Optimism Chain Explorer and scroll right down to see (Add to MetaMask).

4. This is where you access the full DApps on Optimism Ecosystem.

List of Daily Used DApps on Optimism Chain.

Here we will first look into various Decentralized Exchanges (DEX) on Optimism.

1. Uniswap: The first Pioneer of AMM (Automatic Market Maker) Mechanism.

ZipSwap: a gas-efficient native swap on Optimism.

Curve Finance: Curve is a stablecoin and one of the most important stages for swapping stablecoins.

The list is endless, before we come to an end of the list of most important dapps on the chain, here is;

Perpetual Protocol: Perp as fondly referred to is a dex used for trading futures and perpetuals instead of using a CEX.

For the remaining list of Dapps, I will go ahead to list them and also tell you what services they bring and offer on the Optimism Ecosystem.

Bridges

These are the best three bridges so far on the ecosystem.

1. The Official Optimism Bridge.

2. Synapse Bridge.

3. Hop Exchange.

With the few various dapps which can get you started with your day to day trading on the ecosystem, here is a link to all the dapps on the Optimism Ecosystem and all they services they offer and how they secure the chain also.

Optimism is a layer-two blockchain for Ethereum using optimistic rollups as scaling technology. It is one of Ethereum’s biggest scaling solutions with over $250 million in TVL. Optimistic rollups outsource the execution of transactions to a L2 solution like Optimism.

The transactions on Optimism are rolled up into batches that get relayed to the Ethereum mainnet, which only records the new chain state. Since their validity is assumed, the rollups are called optimistic. A rollup's validity can be challenged for up to seven days, which is why withdrawals from Optimism to Ethereum take seven days.

What Makes Optimism Stand Out From Other Layer-2s Chain.

1. Optimism uses single-round fraud proofs and disputes are settled on-chain. This is the reason why Optimism gas fees are quite high other than Arbitrum.

2. Optimism executes transaction proof in one round on the layer-one chain.

3. Optimism is “only” EVM-compatible.

4. Optimism’s ecosystem is significantly smaller ($1.5 billion vs $300 million in total value locked).

Lets Talk About Projects on Optimism Chain.

Optimism currently has more than 50 decentralized applications running on its chain. As part of the roadmap, Optimism plans to:

1. Introduce next-gen fault proofs that improve on-chain security.

2. Sequencer decentralization, so anyone in the network can participate as a block producer.

3. More decentralization and sharded rollups in 2023, just as we have BASE CHAIN and opBNB

Optimism is the leading pioneer of Layer-2 Chains on the Ethereum Blockchain, it has potentials yet to be mined and utilized, hence the Rollups on the chain.

Watch out for our next article on Various Dapps on Optimism Chain and how to interact.

Be Optimistic.