Starknet and the Role of Delegators in the Layer 2 Ecosystem

Starknet has become one of the most exciting Layer 2 scaling solutions for Ethereum by implementing innovative validity proof technology. This network is designed to enable faster and cheaper transactions while maintaining the security inherited from Ethereum. One interesting feature of Starknet is its flexible staking model, including delegator roles that allow ordinary users to participate in network security without running complex infrastructure.

Understanding STARK: The Foundation of Starknet Technology

STARK, which stands for Scalable Transparent Arguments of Knowledge, is a cryptographic proof that forms the basis of Starknet’s operation. This technology verifies the correctness of computations without needing to repeat the calculation process, significantly saving costs and time.

In practice, STARK has several advantages over other approaches. First, it does not require a trusted setup, meaning no centralized party can alter the system. Second, STARKs are highly scalable even as calculations become more complex. Third, its design is resistant to future quantum computing threats, making it a long-term secure solution.

Unlike traditional Zero-Knowledge Proofs (ZKPs) that focus on privacy, STARK emphasizes proof of computational integrity, ensuring each transaction is executed flawlessly.

How Does Starknet Process Transactions?

Starknet’s workflow involves three main components working harmoniously. First, the Sequencer receives transactions from users and orders them into blocks. The Sequencer checks the validity of each transaction—whether the balance is sufficient, parameters are correct, and contract logic is followed—before including valid transactions into a block. This process occurs off-chain, allowing much higher throughput compared to on-chain processing.

Once the block is assembled, the Prover takes over. The Prover records every step of transaction execution (execution trace) and the resulting state changes. It then processes this data to generate a STARK proof, serving as a mathematical certificate that all transactions were executed correctly.

The final step is Settlement on Ethereum. The STARK proof and a summary of state changes are sent back to Ethereum, where two smart contracts verify them. The Verifier contract checks the proof’s accuracy, and if valid, the Starknet Core contract updates the Starknet state on Ethereum. This verified state is then added to the Ethereum block, becoming part of the permanent record. Since the proof guarantees validity, there is no need to re-execute transactions on Ethereum, dramatically reducing congestion and costs.

Cairo: Programming Language for Scalable Applications

Starknet uses Cairo, a specialized programming language designed for writing programs that can be verified with STARK proofs. Cairo enables developers to build scalable applications without needing to be cryptography experts, lowering the barrier to entry into the Starknet ecosystem.

The Cairo ecosystem continues to grow with powerful developer tools. Dojo is an open-source game engine that allows creating fully on-chain high-performance games. Starknet React provides libraries that simplify web interface development for decentralized applications. These tools open new opportunities in GameFi and other on-chain applications.

Although offering technical advantages, Cairo has a steep learning curve. Developers familiar with Solidity need to learn a new paradigm, which may slow down migration of existing applications from Ethereum mainnet or EVM-based Layer 2 solutions.

Native Account Abstraction: Web2 User Experience in Web3

Starknet implements native account abstraction, allowing developers to create user experiences similar to Web2 applications. Features like passkeys enable users to log in without memorizing complex seed phrases. Session keys provide flexibility to approve multiple transactions without repeated approval. The paymaster feature allows gasless transactions, where users can pay with ERC-20 tokens or even have others cover their gas fees.

A concrete example of this implementation is Cartridge Controller, a Starknet smart contract wallet that integrates all these features for a seamless gaming experience. This wallet supports one-click login, player identity, achievement systems, and is compatible with Dojo engine and various frontend tools.

Validity Proofs vs. Optimistic Rollups: Two Different Approaches

Starknet uses validity proofs to confirm the correctness of each transaction, unlike optimistic rollups, which assume transactions are valid unless challenged. Starknet’s approach offers much faster finality—no need to wait days for challenge periods—and provides very strong cryptographic guarantees.

However, optimistic rollups have their own advantages. They are generally simpler to implement and offer broader compatibility with existing Ethereum tools. Layer 2 solutions like zkSync Era and Scroll use zero-knowledge rollup approaches that are more compatible with EVM. The choice between these approaches depends on specific priorities: latency, compatibility, or trust assumptions.

Starknet vs. EVM-Compatible L2: Trade-offs and Choices

Starknet does not natively support Ethereum Virtual Machine (EVM) compatibility, setting it apart from other Layer 2 solutions that allow developers to easily reuse existing Solidity code. Instead, Starknet requires developers to rewrite their applications using Cairo.

This is an intentional trade-off. Cairo is designed specifically for scalability via STARK proofs, offering efficiency that Solidity cannot match. However, this means Starknet’s ecosystem starts with a smaller developer community, though this does not diminish its long-term potential.

STRK Token: Utility, Governance, and Staking Mechanisms

The STRK token is the native utility asset of the Starknet protocol, serving several key functions. As of 2026-02-27, STRK is traded at $0.04, reflecting a dynamic market development.

Governance and Participation

STRK holders can actively participate in protocol governance by voting on proposals. These proposals may include system upgrades, changes to Starknet Operating System, or protocol parameter adjustments. Some proposals may require a minimum STRK threshold to support or initiate.

Transaction Fees

STRK is also used to pay transaction fees on Starknet. When users pay fees with STRK, the sequencer converts part of the tokens into ETH to cover Ethereum gas costs associated with submitting proofs to the mainnet.

Staking and Delegator Roles

Starknet offers two ways to participate in staking:

Validator: Users can stake a minimum amount of STRK and run validation nodes to perform network security duties. Validators earn rewards for maintaining network integrity.

Delegator: This mechanism makes participation more inclusive. Delegators do not need to run validation infrastructure—they simply delegate their STRK tokens to chosen validators. In return, they receive a share of the validator’s rewards, creating passive income streams. This system allows ordinary token holders to contribute to network security without technical expertise or significant hardware investments.

Prospects and Conclusion

Starknet offers a fresh approach to Ethereum scaling through the combination of STARK proofs, Cairo, and native account abstraction. This design not only boosts throughput and reduces costs but also opens new possibilities for developers and users. With support for on-chain gaming, decentralized infrastructure, and inclusive staking mechanisms where anyone can become a delegator, Starknet positions itself as a future-oriented Layer 2. The growth of its ecosystem and industry acceptance of STARK technology indicate that Starknet has significant potential in the evolving blockchain landscape.