StarkNet is a decentralized, permissionless Validity-Rollup (commonly known as ZK-Rollup) that operates as a layer 2 network on top of Ethereum. This enables any decentralized application (dApp) to achieve unlimited computational scale without compromising the composability and security of Ethereum.
STARKs, which are defined as Validity proofs, provide evidence of computational integrity. This means that one party can prove to another that a specific computation was carried out correctly. Unlike Zero-Knowledge proofs, which keep the information contained in the computation confidential, Validity proofs only prove that the computation was done accurately.
Contrary to popular belief, most ZK-Rollups are not actually Zero-Knowledge. The confusion arises from the difference between Validity proofs (which guarantee computational integrity) and Zero-Knowledge proofs (which ensure that no information is disclosed).
StarkNet utilizes STARK Validity proofs, which are extremely difficult, if not impossible, to extract information from.
The world of cryptocurrencies presents several challenges for accounting and financial reporting. Here are some of the major challenges:
In conclusion, accounting for cryptocurrencies presents several challenges, and it is important for organizations to stay informed about the latest developments in the regulatory environment and accounting practices.