3 Reasons Why Starknet is the Future of Layer 2

Feb 21, 2024

You can now purchase STRK on Bake through the Ethereum Scaling Race bundle.

Dubbed the biggest airdrop event of the year, Starknet (STRK), the newest addition to the Ethereum Layer 2 scaling race, just dropped 728 million tokens (220M claimed) to ≈1.3 million addresses.

Starknet’s token, STRK, traded as high as $5 minutes after it was released, and has since retracted and stabilized around $2 in a volatile opening. 

This short-term price slump is not uncommon for tokens with large initial airdrops. Large holders often dump their tokens as soon as they receive them, driving prices down.

Although the initial price dump may seem daunting, the fundamentals of the innovative technology behind Starknet remain the same.

Here are the top 3 reasons why Starknet is set to become crypto’s next rising star:

1. Zero-Knowledge Rollups (ZK-Rollups)

ZK-Rollups have been deemed the “end-game” for Ethereum scalability. They are at the forefront of solving Ethereum's scalability issues. 

ZK-Rollups work by bundling (or “rolling-up”) hundreds of transfers into a single data packet. This data packet is then sent back to be processed as a single transaction by the Ethereum network. 

This system significantly reduces the load on the Ethereum network and increases the speed at which transactions can be processed.

Projects such as ZK-Sync, Linea, Scroll, as well as Startknet itself have all implemented ZK-Rollup technology. 

However, what sets Starknet apart from its “ZK” counterparts is its innovative approach to rollups. Starknet has developed a unique type of Zero-Knowledge proof (named ZK-STARK proofs) that is natively secure and more scalable than other solutions. 

This technology enhances transaction speed and lowers cost, as well as ensuring in-built network security — something no other rollup solution has managed to achieve.

2. Enhanced Security

Starknet’s unique ZK-Rollup technology provides a higher degree of security compared to other scaling solutions.

Other rollups, such as Optimistic Rollups and other ZK solutions have all achieved their high scalability by sacrificing security. Something that is justified by the fact they leverage the security of the robust Ethereum network as a settlement layer.

Starknet, on the other hand, prioritized maintaining security. The cryptographic proofs used in ZK-STARKs allow for the verification of transactions without revealing any specific details about the transactions themselves. 

This approach not only maintains privacy but also adds an extra layer of security, making it increasingly difficult for malicious actors to exploit the network.

Ethereum is still used as Starknet’s final settlement layer, but the addition of native security means Starknet is the only Layer 2 solution that does not solely rely on Ethereum's security features.

3. Developer Friendly “Smart” Accounts

Starknet also sets itself apart thanks to its developer-friendly Native Account Abstraction. By employing Native Account Abstraction, Starknet transforms every account into a "smart" account.

The behavior of Smart Accounts is determined not at the protocol level, but by the developers themselves. This means developers have a high degree of flexibility and customization in account management.

This level of customization opens up a world of possibilities for developers. They can tailor their applications to meet user needs in ways that are not possible on other networks due to protocol limitations. 

It allows for the creation of more user-friendly interfaces and functionalities, significantly enhancing the overall user experience — a major step towards making blockchain technology accessible to a broader audience.

How to Get STRK on Bake

You can buy Starknet's token, STRK, on Bake today through the Ethereum Scaling Race Bundle.

By investing through Bake’s Smart Bundle, you get access to a diversified share of the established Layer 2 projects: Arbitrum (ARB), Optimism (OP), and Polygon (MATIC), in addition to the newest Ethereum's scaling race contender: STRK.

Ethereum's Scaling Race counterbalances the high volatility risk of the recently airdropped STRK with a portfolio of well-established and stable Layer 2 assets (with promising upside potential).

This strategy helps reduce your risk of large holders dumping the market while maintaining the benefits of exposure to Starknet and other leading Layer 2 networks.

DISCLAIMER: Please note that the information on this blog and in any articles posted on this blog is for general information only and should not be relied upon as financial advice. Cake Pte. Ltd., Bake, UAB, and its affiliates (the “Cake Group”) are not licensed financial advisers. You may wish to approach your own independent financial advisor before making any decision to buy, sell or hold any product and/or digital assets mentioned in this blog.

Any views, opinions, references, assertions of fact and/or other statements are not necessarily the views held by the Cake Group. The Cake Group disclaims any liability whatsoever that may arise out of or in connection with such statements. Always do your own research before investing in any financial assets and consult a qualified financial advisor if necessary.


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