Ethereum

Global Cryptocurrency

Starknet

<p><strong>&#34;Even the strongest structures can sometimes shake in the world of DeFi.&#34;</strong></p><p><a href="https://tradedog.io/why-did-starknets-tvl-drop-by-nearly-50/" rel="noopener noreferrer nofollow">Starknet</a>, a well-known way to make Ethereum transactions faster and cheaper, had a big drop in its activity. It used to have around $203 million worth of assets in it on August 16, but that went down a lot to about $98 million. DeFi, which is all about using cryptocurrency for new and creative things, can be full of surprises. This unexpected change makes us want to look deeper into what might have caused it and what it could mean for how Ethereum transactions are made.</p><h3 id="starknet-39-s-special-design-and-how-it-works">StarkNet&#39;s Special Design and How It Works </h3><p>One special thing about StarkNet is how it keeps things private using zero-knowledge technology (ZK). This means that transactions are bundled up before they&#39;re officially confirmed and settled. But it&#39;s important to know that StarkNet doesn&#39;t use the same ZK technology as some others. The people who make StarkNet, called StarkWare, want all the computer programs on it to be made in a special way using a language called Cairo. This helps make sure everything works smoothly with ZK technology.</p><h3 id="the-challenge-of-processing-transactions-quickly">The Challenge of Processing Transactions Quickly</h3><p>People are discussing how well StarkNet can handle transactions. On August 21, Ethereum could process around 10.9 transactions per second (TPS), while StarkNet managed about 4.8 TPS. These numbers are important, especially since layer-2 solutions are meant to make things more efficient. The good news is that StarkNet&#39;s TPS is improving as more people use it. However, when we look at the overall situation, StarkNet&#39;s total transactions in 30 days, which is 9.2 million, seems small compared to Ethereum&#39;s daily transactions of over a million.</p><h3 id="thinking-about-why-starknet-39-s-tvl-went-down">Thinking About Why StarkNet&#39;s TVL Went Down</h3><p>We&#39;re trying to figure out why StarkNet&#39;s TVL (total value locked) dropped so much. Until August 21, there weren&#39;t any problems like hacking or weaknesses on the platform. But the sudden drop in the value of Ethereum might have made the connected platforms on Ethereum seem less secure. Looking at the past, when Ethereum&#39;s value shakes, it can affect the things connected to it.</p><h3 id="changing-how-things-work">Changing How Things Work</h3><p>StarkNet made a change on August 20 to make things more spread out. Instead of having just one main entry point, they now have three: Papyrus, Pathfinder, and Juno. This is supposed to make things work better and be safer, according to the people who work on StarkNet. They&#39;re also making their system work even better by improving how it talks to other systems.</p><p>With all these changes, it makes us wonder: &#34;As we go through the ups and downs of platforms like StarkNet, what can we learn, and how do we make sure we stay strong in the future where things are decentralized?</p>

Why did Starknet's TVL Decrease by Almost Half?

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