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Project Overview
StarkWare is an Ethereum layer-2 scaling protocol and one of the main zk-rollup solutions. It builds StarkNet, a permissionless decentralized ZK-Rollup, and StarkEx, a standalone permissioned Validity-Rollup, both of which are layer-2 scaling solutions for Ethereum using zero-knowledge rollup technology.
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StarkWare Announces Layoffs and Restructuring into Two Business Units, Betting on Monetization of Its Own Products
According to The Block, zero-knowledge proof scaling developer StarkWare has announced layoffs and an internal restructuring. In an all-hands meeting, co-founder and CEO Eli Ben-Sasson stated the company had “grown too large” and needed to return to a “startup mode” to accelerate product-market fit. The specific number of employees to be laid off and the timeline remain undisclosed, though the company pledged severance packages exceeding legal requirements. Following the restructuring, StarkWare will split into two independent business units: (1) a revenue-oriented applications unit, led by current Chief Product Officer Avihu Levy as General Manager, focused on developing monetizable products built atop StarkWare’s proprietary tech stack; and (2) the Starknet development unit, led by current Head of Product Tom Brand. Each unit will have its own dedicated engineering, product, and marketing teams. Strategically, StarkWare plans to take full ownership of its entire blockchain proof technology stack—including Cairo, Sierra, and quantum-resistant STARK cryptography—reducing reliance on external Layer 1 blockchains and application teams. Ben-Sasson said the company would shift from “doing many things well” to “doing a few things exceptionally well,” concentrating on high-potential, high-value directions uniquely achievable by StarkWare. Additionally, COO Oren Katz has tendered his resignation and will officially depart at the end of April.
StarkWare Researcher Proposes Bitcoin Post-Quantum Transaction Scheme Without Soft Fork
According to The Block, Avihu Levy, a researcher at StarkWare, published a paper proposing the Quantum Safe Bitcoin (QSB) scheme, claiming it enables quantum-resistant transactions under Bitcoin’s existing script rules—without requiring a soft fork. This scheme replaces elliptic-curve cryptography with the RIPEMD-160 hash function via a “hash-to-signature” puzzle, thereby enhancing resilience against quantum attacks. The paper notes that QSB’s current per-transaction cost ranges from $75 to $150—significantly higher than today’s average transaction fee—and involves complex user experience; thus, it is recommended only as a “last resort.” The scheme remains constrained by script opcodes and size limits, and does not yet support all use cases—such as the Lightning Network. Compared to BIP-360—which requires protocol-level changes—QSB needs no modifications to the Bitcoin protocol, but remains experimental.