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Starknet vs. Ethereum Layer 1: Fees, Security, and Decentralization

By Freedom251 Team · · 13 min read

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Starknet is not a cheaper copy of Ethereum Layer 1; it is a validity-rollup Layer 2 that executes transactions away from Ethereum and settles state updates on Ethereum. That design can reduce the amount each user pays when many transactions share Layer 1 costs, but the actual fee depends on data, computation, Ethereum gas conditions, operator charges, and proof costs. Starknet’s STARK proofs let Ethereum verify that a state transition is valid, while sequencing and proving can remain more centralized than Ethereum’s validator set.

The practical choice is therefore not simply “which chain is better?” Ethereum L1 offers direct execution and its own consensus and validator infrastructure. Starknet offers a separate execution environment whose state is secured through proofs and settlement on Ethereum, with a decentralization roadmap that is still being implemented. The sections below separate those properties so you can choose based on the transaction, security assumption, and operational control you actually need.

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What Starknet and Ethereum Layer 1 actually are

Ethereum Layer 1 (L1) is the base network. Transactions execute in Ethereum’s own environment, Ethereum validators order blocks and participate in consensus, and the resulting state is finalized under Ethereum’s protocol. Users pay Ethereum gas for the computation and state changes their transactions cause.

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Starknet is a Layer 2 (L2) validity rollup. Its execution occurs outside L1. Starknet groups transactions, computes a new state, and produces a STARK proof attesting that the transition followed the protocol rules. That proof and the data needed to reconstruct the state are submitted to Ethereum, where Ethereum contracts and consensus verify and settle the update. Starknet’s roadmap summarizes the model as: “Starknet transactions settle on Ethereum by verifying STARK proofs that attest to each state transition.”

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Ethereum.org describes the general rollup pattern this way: rollups execute transactions outside Layer 1 and post data to Layer 1, where consensus is reached. Starknet follows that broad model, but its fee accounting, execution language, sequencer design, and decentralization plans are Starknet-specific.

Why the layer distinction matters

  • A transaction sent directly to Ethereum consumes Ethereum gas and is ordered in an Ethereum block.
  • A transaction sent to Starknet is first handled by Starknet’s execution and ordering infrastructure. The resulting batch is then represented on Ethereum through data and a validity proof.
  • Ethereum is the settlement and proof-verification layer for Starknet, but that does not mean every Starknet operating role is already as distributed as Ethereum’s validator network.
  • Fees, confirmation behavior, censorship exposure, supported functionality, and failure recovery can therefore differ even though Starknet ultimately settles on Ethereum.

Fees: why Starknet can cost less without having a fixed discount

There is no defensible universal statement such as “Starknet is always X times cheaper.” A fair comparison requires the same time, transaction type, data size, contract behavior, and market conditions on both networks. Ethereum gas prices change, and Starknet’s costs change with the amount of L1 data published, the work performed by the operator, and proving and verification expenses.

What an Ethereum L1 fee pays for

On Ethereum L1, the gas fee directly prices execution and state access in an Ethereum block. The user’s total payment is determined by gas used and the prevailing fee market, including any priority component selected for inclusion. A simple transfer and a complex contract call consume different amounts of gas. A busy Ethereum blockspace market can make both operations more expensive even when the transaction itself has not changed.

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What a Starknet fee has to cover

Ethereum.org’s rollup cost description identifies several components that can appear in a ZK-rollup fee:

  • State-write and settlement costs on Ethereum: the rollup must submit information to L1 and update the settlement contract.
  • Data publication: transaction or state data posted to Ethereum consumes scarce L1 blockspace. Larger batches or more information per transaction raise this portion of the cost.
  • L2 operator costs: infrastructure that receives transactions, executes them, builds batches, and serves users has operating expenses.
  • Proof generation and verification: producing a STARK proof requires computation, and verifying it on Ethereum requires an L1 transaction and associated gas.
  • Network conditions and transaction computation: a transaction that performs more Starknet computation or carries more data can cost more than a simple transfer, and L1 congestion can raise the settlement portion.

Batching is the key economic mechanism. Fixed L1 expenses can be shared across many Starknet transactions, so each transaction may bear only a fraction of the settlement and proof cost. That advantage is variable: a lightly used batch, unusually expensive data, or a congested Ethereum market can change the result.

How to make a current fee comparison

  1. Record the exact operation on both networks: for example, a token transfer, a contract deployment, or a swap. Do not compare a basic transfer on one network with a complex contract call on the other.
  2. Measure at the same time and record the relevant network and wallet estimates. Fees are time-sensitive, so preserve the date and time with the observation.
  3. Capture the transaction’s data size and execution requirements. A transaction that writes several storage slots is not comparable to one that only moves an existing balance.
  4. For Starknet, separate the quoted user fee from any later settlement event. The quote should identify the currency, gas assumptions, and whether the estimate includes all operator and proof-related components.
  5. Repeat the sample under more than one congestion condition before drawing a general conclusion. One low-fee observation is not a network-wide average.

The supplied technical sources do not establish a current, like-for-like price table. Treat Starknet’s fee advantage as a design possibility created by batching, not as a guaranteed percentage reduction.

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Which currency pays Starknet fees?

Starknet’s FAQ states that fees are currently paid in ETH and that users may choose to pay in STRK after Provisions. This is a changeable implementation detail rather than a permanent property of the protocol. Check the live Starknet documentation and wallet behavior before sending a transaction, especially if you hold only one of those assets.

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Security: what the STARK proof establishes

Starknet’s core security mechanism is validity verification. The prover generates a mathematical proof that the published state transition follows Starknet’s rules. Ethereum verifies that proof through the rollup’s settlement contracts. If the proof is invalid, the transition should not be accepted by the settlement layer.

This is different from asking whether every operational participant is decentralized. A proof answers, “Was this state transition computed correctly according to the protocol?” It does not by itself answer, “Who chose the transaction order?”, “Who produced the current batch?”, or “How many independent parties can generate proofs?” Those questions concern sequencing, inclusion, and proving infrastructure.

What Ethereum contributes to Starknet security

  • Settlement: Starknet state updates are finalized through Ethereum’s settlement contracts and consensus process.
  • Validity enforcement: Ethereum verifies the STARK proof attached to a state transition rather than trusting an operator’s assertion.
  • Data availability assumptions: information posted to Ethereum gives other participants a basis for reconstructing and checking the rollup state, subject to the exact data-availability design in use.

These properties let Starknet use Ethereum as its settlement and verification anchor. They do not turn Starknet into an Ethereum L1 shard, and they do not remove Starknet-specific software, operator, or governance risks.

What the proof does not guarantee

  • A valid proof does not guarantee that a user’s transaction was included quickly.
  • It does not prevent a sequencer from choosing an ordering that disadvantages a transaction, within the protocol’s available controls.
  • It does not show that proving is performed by a broad, independent operator set.
  • It does not make Starknet’s execution environment identical to Ethereum’s; applications still depend on Starknet’s contracts, tooling, and implementation.

For a high-value application, evaluate the proof system and the operational path separately. Ask how a transaction enters the network, who can delay or reorder it, how users recover during an outage, and how quickly a disputed or invalid update would be rejected.

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Sequencing, inclusion, and censorship

A sequencer receives pending L2 transactions, determines their order, and proposes a block or batch for execution. Ethereum.org warns that a centralized sequencer can control L2 block production and influence transaction ordering. That is an operational trust consideration even when every accepted state transition must carry a valid proof.

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Why ordering control matters

Ordering can affect when a trade executes, which transaction wins a limited mint, whether a liquidation occurs first, and how quickly a user’s payment is included. A sequencer that is unavailable can delay transactions; a sequencer with ordering discretion can choose among transactions that are otherwise valid. These are inclusion and censorship questions, not proof-correctness questions.

Ethereum L1 has its own proposer and validator dynamics, including the possibility of transaction reordering within the rules of the protocol. Starknet adds another ordering layer before settlement. Comparing the two therefore requires identifying the actual block producer for the transaction you care about and the mechanisms available when that producer is offline or refuses inclusion.

What to check before relying on Starknet for time-sensitive activity

  • Whether the current sequencer arrangement is single-operator or distributed in the live implementation.
  • Whether users have a documented escape or forced-inclusion path during sequencer downtime.
  • How transaction timestamps, nonce handling, and ordering guarantees are defined for the application.
  • Whether your application can tolerate delayed inclusion while a batch is waiting for proving and Ethereum settlement.

No complete current sequencer roster or independently measured censorship-resistance statistic is established by the cited Starknet and Ethereum.org materials. Use Starknet’s live technical documentation for the deployment you intend to use rather than treating a roadmap target as an operational guarantee.

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Decentralization: current architecture versus roadmap

Decentralization has several dimensions: who orders transactions, who can produce proofs, who runs infrastructure, who can upgrade contracts, and how many independent parties can continue operating if one participant fails. A network can be strong in one dimension and concentrated in another.

Starknet’s published roadmap status

Starknet’s roadmap labels Phase 3 as the current phase on the reviewed page. It describes the v0.14.0 “Grinta” upgrade as laying the foundation for a distributed sequencer layer with three independent sequencers, each with a mempool. The roadmap also describes later Phase 4 and Phase 5 decentralization elements as in progress or future work.

Those statements describe Starknet’s planned and reported implementation path; they are not an independent audit of the live network. A roadmap item can be deployed partially, changed, or delayed. Confirm the current software version, active operators, and governance controls before treating a planned role as available today.

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Proving remains a separate concentration point

In its Staking v4 roadmap section, Starknet explicitly says that proving remains centralized under StarkWare. Even if transaction sequencing becomes distributed, a concentrated proving process is still a distinct operational dependency. The proof must be generated for a state update, and the system’s ability to process and settle updates can depend on the entities and infrastructure performing that work.

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This is why “Starknet uses Ethereum security” should be stated precisely. Ethereum verifies the validity proof and provides settlement consensus. Starknet’s sequencer and prover decentralization are separate properties with their own implementation schedules.

Roadmap milestones that need qualification

The Phase 2 description on Starknet’s roadmap reports 127 sustained transactions per second, two-second transaction confirmations, and sub-cent fees. These are Starknet-published milestones associated with that phase description. They are not an independently measured, current comparison with Ethereum L1, and the page does not establish that the figures apply to every transaction type or present network condition.

Use those figures as evidence of the performance goals and results Starknet chose to report for that phase, not as a promise about the fee or latency you will receive today.

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Direct comparison: fees, security, and decentralization

Dimension Ethereum Layer 1 Starknet How to interpret it
Execution location Transactions execute directly on Ethereum. Transactions execute on Starknet and are represented on Ethereum through rollup settlement. The networks price different resources and have different operational paths.
Fee basis Ethereum gas for execution and state changes, priced by L1 demand. Data publication, Ethereum settlement, operator work, proving and verification, plus Starknet computation and network conditions. Batching can lower per-transaction cost, but no fixed discount is established.
Correctness mechanism Ethereum protocol execution and consensus validate the L1 state. STARK validity proofs are verified through Ethereum settlement contracts. Proof validity is not the same as decentralization of ordering or proving.
Transaction ordering Ethereum proposers and validators order L1 blocks under Ethereum rules. A Starknet sequencer or sequencer set orders L2 transactions before settlement. Check who can delay, reorder, or censor transactions on the specific deployment.
Sequencer decentralization Not applicable as a separate L2 role. Distributed sequencing is described in Starknet’s roadmap; the reviewed materials do not independently confirm the complete live operator set. Treat roadmap status as a plan or project report, not an audit.
Prover decentralization Not a separate rollup proving role. Starknet’s Staking v4 roadmap section says proving remains centralized under StarkWare. A distributed sequencer would not by itself remove prover concentration.
Reported Phase 2 performance Not stated in the Starknet roadmap material. 127 sustained TPS, two-second confirmations, and sub-cent fees are reported milestones. These are source-attributed roadmap claims, not current independent benchmarks.

Which network fits a particular use case?

Choose Ethereum L1 when direct base-layer settlement is the priority

Ethereum L1 is the straightforward choice when you need your transaction to execute in Ethereum’s own environment, want to interact directly with L1 contracts, or do not want an additional sequencer and prover layer in the transaction path. The trade-off is exposure to Ethereum’s L1 fee market and blockspace limits. For applications whose users already depend on L1 liquidity, contracts, or governance, avoiding a layer transition can simplify operations.

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Choose Starknet when rollup execution and batching match the workload

Starknet can be attractive when the application benefits from executing many transactions off L1 and sharing settlement costs across a batch. It may also be appropriate when Starknet-specific functionality, latency targets, or pricing logic fit the application. The decision should include the sequencer and prover assumptions, not only the quoted transaction fee.

Use a two-layer strategy when requirements differ

Some systems can settle high-value or infrequent operations on Ethereum while using Starknet for frequent activity. That arrangement adds bridging, accounting, monitoring, and failure-recovery complexity. It should be adopted only when the savings or performance benefit justifies maintaining two execution environments and explaining the distinction to users.

A due-diligence checklist before moving funds or deploying an application

  1. Define the security claim. Decide whether you need Ethereum settlement, validity protection, censorship resistance, fast inclusion, or a specific combination. Do not use “secure” as a substitute for those separate requirements.
  2. Verify the live fee currency. Starknet’s FAQ says ETH is currently used and that STRK payment may be available after Provisions; confirm the current wallet and protocol behavior.
  3. Obtain a dated fee quote. Record the transaction type, estimated computation, data, currency, and network conditions. A quote without those fields is difficult to compare with an L1 transaction.
  4. Identify the sequencing path. Find the current sequencer arrangement, downtime policy, transaction-retry behavior, and any forced-inclusion or escape mechanism documented for the deployment.
  5. Check proving dependencies. Determine who currently operates proving infrastructure and what happens if that service is delayed. Starknet’s roadmap says proving remains centralized under StarkWare in the cited Staking v4 section.
  6. Separate deployed features from targets. Mark each roadmap item as live, partially deployed, or planned. Do not present Phase 4 or Phase 5 goals as current guarantees.
  7. Test the application’s recovery process. Confirm how users retrieve transaction status, handle a sequencer outage, and reconcile a transaction that is accepted on L2 but has not yet appeared in an Ethereum settlement update.
  8. Reassess periodically. Fees, operators, software versions, and decentralization stages change. Re-run the comparison when the application changes or when the network publishes a major upgrade.

Common misconceptions, corrected

“A rollup is automatically as decentralized as Ethereum.”

No. A rollup can use Ethereum for settlement and proof verification while relying on a smaller set of parties for transaction ordering or proving. Those roles must be evaluated separately.

“A STARK proof makes censorship impossible.”

No. A STARK proof demonstrates that an accepted state transition is valid. It does not force a sequencer to include a particular transaction immediately.

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“Sub-cent fees are the current price for every Starknet transaction.”

No. The sub-cent figure is a Starknet roadmap Phase 2 milestone, not a current, independently verified price covering every transaction and market condition.

“The cheapest quoted transaction is the cheapest network.”

No. Quotes can describe different operations, currencies, data volumes, or times. Compare equivalent actions with dated assumptions and include operational costs such as delayed inclusion and recovery work.

Bottom line: compare the guarantees, not just the gas number

Starknet’s value proposition is a validity-rollup architecture: execute away from Ethereum, batch activity, and settle state transitions on Ethereum with STARK proofs. That design can make individual transactions less expensive than direct Ethereum execution under favorable batching and gas conditions, but the sources do not support a fixed savings figure.

Ethereum L1 remains the direct base-layer environment with its own execution, consensus, and fee market. Starknet inherits important settlement and validity properties from Ethereum, yet sequencing and proving introduce separate concentration and censorship questions. Starknet’s roadmap reports progress toward distributed sequencing and identifies proving as still centralized under StarkWare in the cited section. Choose Ethereum, Starknet, or both only after matching the network’s actual fee conditions and operational decentralization to the guarantees your application requires.

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