Ethereum protocol firm StarkWare raises $50m

November 17, 2021

Blockchain and software company StarkWare has announced that it has raised $50 million in its latest fundraising round, taking the tech firm to a valuation of $2 billion.

StarkWare is currently working on building a layer-two protocol for Ethereum’s blockchain; to mitigate issues of scalability and allow greater functionality on the network. Ethereum, as the leading altcoin, stands as one of the biggest blockchain platforms to allow other decentralized platforms and applications to build on it. However, there are issues related to scaling on the main blockchain, leading to tech firms looking to find a solution. StarkWare’s SkarkEx L2 (the layer two protocol) allows partners like trading platforms to submit trades on the platform’s new upgrade. This will make transactions cheaper (as it reduces the amount of gas needed to conduct the transaction).

dYdX, the trading platform that has partnered with StarkWare, recently launched its native governance token (DYDX) and released its airdrop offering over $100,000 in crypto to its active user-base.

StarkWare’s Series C funding round closes at $50 million

Announcing the news on Twitter, StarkWare attributed a special thanks to venture capital firm Sequoia Capital, as well as other investors who contributed to the Series C funding round:

StarkNet’s launch of Alpha 2

The news of the latest funding round has been followed by the official launch of StarkNet’s Alpha 2 upgrade. The latest upgrade is part of its Zero-Knowledge (ZK) rollout which is to be deployed on Ethereum’s main network towards the end of this month. According to the company, this new rollout will introduce features that will allow smart contract deployment, offering greater support and scalability to companies and applications that want to build on the network.