Starknet, the Ethereum Layer-2 solution built on zero-knowledge (ZK) rollup technology, has just taken a major leap forward in its roadmap to full decentralization—while also becoming the top ZK-rollup-based network by total value locked (TVL).
In a recent announcement, Starknet shared that it has officially reached what Ethereum co-founder Vitalik Buterin previously defined as “Stage 1” decentralization. According to Buterin’s decentralization framework introduced in 2022, this stage represents a transition away from heavy-handed centralized control toward a more autonomous, secure, and censorship-resistant architecture—though still with limited oversight mechanisms in place, often dubbed “training wheels.”
The milestone marks a pivotal shift for Starknet as it strengthens its governance infrastructure. According to the project, the platform now includes a robust security council and has implemented anti-censorship features to further decentralize operations. Importantly, the system relies on a fully functional validity proof mechanism—anchored in smart contracts—to confirm transaction correctness, replacing the need for trust in centralized validators.
Starknet’s CEO and co-founder, Eli Ben-Sasson, expressed a long-term commitment to pushing beyond this early stage. “We’re not stopping here. The end goal is to fully remove the training wheels and achieve Stage 2 decentralization—not only on Ethereum but also as we move forward with our work on Bitcoin scalability,” Ben-Sasson emphasized.
Climbing to the Top of ZK-Rollups
In addition to this governance milestone, Starknet has quietly become the most dominant ZK-rollup Layer-2 solution in terms of total value locked. According to data from L2Beat, the platform currently holds $629 million in TVL, narrowly surpassing rival ZKsync, which has $610 million. This places Starknet not just at the top of the ZK-rollup subset, but also as the fifth-largest Layer-2 network overall.
The broader Layer-2 ecosystem remains dominated by optimistic rollups—another popular scaling method that relies on fraud proofs. These systems assume a transaction is invalid until proven otherwise, whereas ZK-rollups like Starknet assume validity only when cryptographically proven. Both models have their strengths, but the zero-knowledge approach is often praised for faster finality and improved security.
Despite its growth, Starknet still commands just 1.4% of the total Layer-2 market, which is valued at $44.2 billion. Leading the pack is Base, Coinbase’s Layer-2 network, with a staggering $14.7 billion in TVL and a commanding 33% market share. Starknet, while smaller by comparison, is emerging as a key player in the ZK space with a serious focus on decentralization and long-term scalability.
The Road Ahead: Stage 2 and Beyond
Buterin’s decentralization framework outlines three progressive stages: Stage 0 (heavily centralized), Stage 1 (partially decentralized with limited safeguards), and Stage 2 (fully decentralized and community-governed). Only a few smaller Layer-2 solutions have reached Stage 2 thus far, making the path forward both challenging and meaningful for Starknet.
To reach this final level, the Starknet team will need to eliminate the last traces of centralized oversight and ensure that the network is governed entirely by its community, smart contracts, and open-source protocols.
In an ecosystem often riddled with overpromising and underdelivering, Starknet’s steady, structured approach to scaling and decentralization is a refreshing signal of maturity. As the Ethereum Layer-2 race continues to evolve, Starknet appears poised to play a defining role in shaping its future.
