StarkWare, an Israeli firm, announced Tuesday via Twitter that it raised $50 million in Series C funding rounds. The firm’s current valuation is $2 billion. Sequoia Capital was among the investors. StarkWare raised $75 Million in Series B funding seven months ago from Paradigm.
We are thrilled to announce our Series C at $50M and $2B. We are grateful to @sequoia our lead investor and all the amazing follow-on investors. Also, we want to thank all of our ecosystem partners and collaborators for their confidence in our products. pic.twitter.com/CuaeMSf2s6
StarkWare (@StarkWareLtd), November 16, 2021
This information comes before StarkNet Alpha 2 is launched, an upgrade to the Zero-Knowledge Rollup technology or zk–Rollup on Ethereum mainnet. It is currently scheduled for deployment at the end of November. StarkNet Alpha will support permissioned smart contracts deployment, allowing anyone to use the scaling technology.
StarkWare is one of the few layer two scaling protocols for Ethereum that has seen a surge in adoption despite rising gas prices. StarkEx L2’s scalability engine allows partners such as trading platform, dYdX to submit on-chain trades using zk-Rollups. This reduces trading fees and uses less gas. The DYDX governance token was recently released by the dYdX exchange. Its airdrop reached $100,000 for its most active users.
There are two types of rollup technology available: zk or Optimistic Rollups. Optimistic Rollups assume that transactions are valid by default, and only run the computation. ZK-Rollups generate zero knowledge proofs for validating transactions, and submit these proofs to Ethereum’s mainnet continually. A zk-Rollup makes it faster and more cost-effective to validate a block or transfer funds.
Starkware’s L2 competitor Polygon launched simultaneously its zkSTARK powered Miden Virtual Machine to develop decentralized applications. Also known as DApps.