Comparing Layer 2 Solutions: StarkEx vs Starknet vs Arbitrum vs Optimism vs zkSync vs Polygon

8 min readNov 21, 2023

What Are Ethereum Layer 2 (L2) Protocols?

Ethereum is one of the most popular blockchains. However, its focus on strict security and decentralization means that the blockchain can only process about 14 transactions per second. Because of this, Ethereum transaction costs are usually very high, and transactions can take a long time to process.

“Layer 2” solutions are blockchains built on top of (or in parallel with) the Ethereum blockchain that is used to scale its capabilities. These chains usually process many more transactions per second for much less in fees. In return, however, Layer 2 blockchains are usually more centralized and not as well-secured as the main “Layer 1” Ethereum chain.

As an analogy, you can imagine the Ethereum network as the US Postal Service — or the main government-owned postal courier in a country. It is reliable, secure, and available to everyone, but it often suffers from congestion, delays, and relatively high costs due to its wide reach and demand.

Layer 2’s, on the other hand, are like private delivery services. There are many more of them, and they can transfer packages faster and cheaper. On the other hand, they don’t have the credibility of the main postal service and may not be trusted by everyone to ship the most important packages.

Why Do We Need L2 Solutions?

Many popular blockchain projects are building their services on Layer 2 blockchains in order to provide their users with more affordable trading, gaming, lending, and much more. Large tech companies such as Reddit and Meta are opting to use Layer 2 solutions to bring their web3 offerings to the masses for a low cost.

The Ethereum blockchain has upcoming upgrades which will scale the capacity of the network. However, there are already several tried-and-true Layer 2 projects, and the bridges need to use them, that will most likely continue to see wide adoption even as the main Ethereum chain improves.

L1 Vs. L2

Layer 1

Average transaction fees are $5+
Transactions per second are limited to around 14
Security is a top priority that hampers the speed of the blockchain
Fully decentralized — cannot be changed or halted without mass consensus

Layer 2

Average transaction fees are less than $1
Can process potentially hundreds of thousands of transactions per second
Security is still very tight, but may sometimes be compromised in favor of speed
Some Layer 2 chains are much more centralized than Layer 1’s, leading to concerns about their reliability and independence

What Are Ethereum Rollups?

Optimism, Arbitrum, StarkEx, and zkSync are all examples of Ethereum “rollups.” A rollup is a type of Layer 2 scaling technology that processes transactions off-chain and then submits them all together in a “rollup” to the main Ethereum chain.

There are two types of rollups:

Optimistic Rollups: Optimistic rollups assume that all transactions within the rollup are valid, and they are automatically submitted to the main Ethereum chain. If a transaction is not valid, there is a specific time window within which anyone can submit “fraud proof” that proves the transaction is incorrect. This allows the chain to process transactions quickly and only do extra work if a transaction is proven to be fraudulent. Arbitrum and Optimism are examples of Layer 2’s utilizing optimistic rollups.
Zero-Knowledge Rollups: Zero-knowledge, or “ZK,” rollups check every single transaction for validity before submitting it to the blockchain. These types of rollups use sophisticated cryptography and math known as “zero-knowledge proofs” in order to verify that each transaction is legitimate. Among decentralization and security purists, ZK rollups are the preferred Ethereum scaling mechanism. However, they are much more complicated than optimistic rollups and have not yet enjoyed as wide of adoption. StarkEx and zkSync are examples of Layer 2’s utilizing zero-knowledge rollups.

This article compares six Ethereum Layer 2 solutions — StarkEx, Starknet, Arbitrum, Optimism, zkSync, and Polygon — and how they uniquely scale the Ethereum network.

These Layer 2 solutions have been selected based on their scaling technology, popularity among users and developers, as well as their transactions per second (TPS) compared to the Ethereum network.

Let’s dive straight in!

StarkEx

StarkEx is an application-specific Ethereum scaling solution designed to amplify transaction speed and curtail costs for integrated dApps. It is an enterprise-based service tailored to align with the distinct requirements of dApps deployed on it.

StarkEx launched its mainnet in June 2020 and is under the management of the StarkWare team. The platform hosts popular dApps such as Sorare, Immutable X, and dYdX.

StarkEx makes Ethereum more efficient by consolidating many transactions into one batch. It uses a technology called zero-knowledge rollup which provides mathematical proof that the transactions are valid. This is particularly helpful for applications that need to process a lot of transactions quickly.

StarkEx can process between 15,000 to 50,000 transactions per second (tps), depending on the requirements of each specific application. The platform has processed over $1 trillion in cumulative trading and has $525 million locked into its ecosystem.

Starknet

Starknet was also designed by the StarkWare team, and launched its alpha mainnet in November 2021. Unlike StarkEx, it is not managed by the StarkWare team.

Starknet is a permissionless Ethereum Layer 2 scaling solution, functioning in a decentralized manner similar to public networks like Ethereum.

Starknet reduces gas costs and improves user experience on Ethereum using the zero-knowledge (zk) technology. It uses a native programming language called Cairo.

Starknet is EVM-compatible, and enables Ethereum developers to deploy their smart contracts often via transpiler — a program that converts Ethereum smart contracts into a format compatible with Starknet.

A standout attribute of the protocol is its support for account abstraction. This function allows users to use a smart contract to manage their accounts.

Starknet plans to transition to using its own token, STRK, for settling gas fees instead of Ethereum’s Ether (ETH).

The total value locked (TVL) in the Starknet ecosystem currently stands at $26.19 million.

Arbitrum

Arbitrum, launched in August 2021, is a well-known Layer 2 solution within Ethereum’s Layer 2 landscape. The network currently boasts the highest Total Value Locked (TVL).

Arbitrum operates using optimistic rollup technology, another type of rollup solution. It aggregates numerous transactions into a singular batch that is then verified directly on the Ethereum chain. The platform can handle an impressive 40,000 transactions per second (tps).

The Arbitrum ecosystem comprises two primary protocols: Arbitrum One and Arbitrum Nova. While Arbitrum One suits general blockchain use cases, Arbitrum Nova specializes in serving blockchain-based gaming and Web3 social networks.

Notably, Arbitrum Nova introduces inventive design elements and language features to enhance scalability and efficiency.

At the core of the network lies its native token, ARB. ARB grants holders governance rights and allows them to influence its development direction. However, the token does not replace Ether (ETH) for gas fee payments.

Optimism

Optimism launched its alpha mainnet in January 2021. It also leverages optimistic rollup technology to scale the Ethereum network.

Originally developed as EMV-compatible, Optimism has undergone iterations to become an EVM-equivalent protocol. Now developers can use Ethereum-based code without making changes to the core code. This way, Optimism directly leverages Ethereum’s security features.

While Ethereum only processes about 15 to 20 transactions per second (tps), Optimism can actively process up to 2,000 transactions within the same time frame.

Optimism also has a native token, OP. OP holders can actively participate in on-chain voting for protocol decisions. Similar to Arbitrum’s ARB, the OP token is not used for paying gas fees.

zkSync

zkSync was built with the zk-rollup scaling technology which allows it to handle a high transaction volume while benefiting from Ethereum’s robust security. zkSync can process an impressive 100,000 transactions per second (tps).

Beyond its transaction prowess, zkSync distinguishes itself with a range of unique attributes. The platform offers seamless asset deposits and transfers via its atomic swaps feature.

Another feature is “gasless meta-transactions,” which eliminates the need to buy and hold a specific cryptocurrency like ETH for gas fees. The feature lets users pay gas fees directly with the token they send. This user-centric approach simplifies transactions and enhances the overall user experience.

zkSync comprises two distinct protocols: zkSync Lite and zkSync Era. While zkSync Lite excels in simple asset transfers and limited dApp interaction, it lacks native smart contract capability. zkSync Era addresses this limitation. It empowers developers to deploy smart contracts and interact within a network akin to the Ethereum mainnet.

zkSync Era launched in March 2023 and currently has a total value locked (TVL) of over $147 million.

Polygon

Polygon is a suite of protocols designed to enhance Ethereum’s usability by providing a variety of scaling solutions. It stands out as a pioneering and widely embraced comprehensive scaling solution for Ethereum.

Originally introduced as Matic before rebranding in 2017, Polygon has developed standout solutions, including Polygon PoS and Polygon zkEVM.

Polygon’s initial product, now referred to as the Polygon PoS (Proof-of-Stake) network, is EVM-compatible but is not a direct Ethereum-equivalent chain. In contrast, its latest product, Polygon zkEVM, leverages zk-rollup technology and offers a faithful replica of the Ethereum network.

To make transactions and cover gas fees on the Polygon PoS network, you need to have MATIC, the native token of Polygon. On the other hand, if you want to pay for gas on the Polygon zkEVM network, you will need a form of Ether (ETH). However, Polygon’s team has put forth a proposal to adopt a fresh native token named POL. They aim to enhance the security of their various solutions and streamline transactions using this new token.

The Polygon PoS boasts an impressive throughput of up to 65,000 transactions per second, while Polygon zkEVM can currently handle up to 2,000 transactions per second.

Polygon PoS and Polygon zkEVM have applications across diverse dApps, including decentralized finance (DeFi), non-fungible tokens (NFTs), and gaming.

At the time of writing, the Polygon PoS network boasts a Total Value Locked (TVL) of $904 million, while Polygon zkEVM has accumulated a TVL of over $31 million since its launch in March 2023.

Comparing the Specs of Ethereum’s Layer 2 Solutions

We have compiled the table below to help you see at a glance the similarities and differences between these Layer 2 solutions.

Table: Comparison of Major Ethereum Layer 2 Solutions

Which Layer 2 Scaling Solution is the Best?

The “best” Layer 2 scaling solution is one that directly fits your use case and satisfies all the requirements for effectiveness and efficiency.

Each Layer 2 solution has its unique strengths and trade-offs. That’s why you must assess their features, limitations, community support, real-world adoption, and other pertinent factors before determining the most suitable Layer 2 scaling solution for your specific project or application.

You should consider factors like transaction speed, cost, security, compatibility with current infrastructure, implementation complexity, and specific use case needs. By doing a thorough assessment, you can make the best choice for your Layer 2 scaling needs.