OKX Ventures Invests in Type 2.5 zkEVM Project Kakarot

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The world of Web3 is evolving at a rapid pace, with innovation driving the next generation of scalable, secure, and interoperable blockchain solutions. At the forefront of this transformation is Kakarot, a promising Type 2.5 Zero-Knowledge Ethereum Virtual Machine (zkEVM) built using Cairo — a Turing-complete language designed for creating provable programs on blockchain platforms powered by STARK proofs. In a significant development for the ecosystem, OKX Ventures, the investment arm of leading Web3 technology company OKX, has announced its seed round investment in Kakarot, signaling strong confidence in its mission to scale Ethereum through cutting-edge zero-knowledge technology.

What Is Kakarot?

Kakarot began as a grassroots community initiative during a Starknet Hacker House event in October 2022. What started as an experimental project quickly gained momentum due to its ambitious goal: bridging the gap between Ethereum’s robust developer ecosystem and Starknet’s high-performance, scalable infrastructure. Built on Starknet, Kakarot leverages Cairo, a programming language developed by Starkware, to deliver full opcode equivalence with the Ethereum Virtual Machine (EVM). This means developers can deploy existing Ethereum smart contracts on Kakarot without modifications — a major step toward seamless cross-layer compatibility.

Within just two and a half months of development, Kakarot achieved full operation code (opcode) parity with EVM, showcasing the power of community-driven innovation combined with advanced cryptographic tooling. By functioning as both a Layer-2 scaling solution on Ethereum and a Layer-3 network on Starknet, Kakarot enhances scalability while maintaining security and decentralization.

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The Role of Type 2.5 zkEVM Architecture

Zero-knowledge rollups (zk-rollups) are among the most promising paths to Ethereum scalability. Within this space, zkEVMs aim to replicate Ethereum’s execution environment while benefiting from the efficiency and privacy of zero-knowledge proofs. However, not all zkEVMs are created equal.

Kakarot falls into the Type 2.5 zkEVM category — a classification defined by Vitalik Buterin and other Ethereum researchers that balances performance and EVM equivalence. While Type 1 zkEVMs offer full equivalence (including identical gas costs and execution traces), they often come with higher prover overhead. Type 2.5 introduces slight optimizations — such as modified gas costs — to improve proving speed while retaining near-full compatibility with Ethereum tooling and dApps.

This strategic positioning allows Kakarot to deliver fast, cost-effective transaction processing without sacrificing developer experience. For projects looking to scale on Ethereum while preserving access to tools like Hardhat, Remix, and MetaMask, Kakarot offers a compelling path forward.

Vision for the Future: From Type 2.5 to Type 1 zkEVM

Kakarot’s ambitions extend beyond its current architecture. The team is actively working toward evolving into a Type 1 zkEVM, which would allow any Layer-1 Ethereum node to generate STARK proofs natively. This would represent a monumental leap in interoperability, enabling trust-minimized verification across chains and unlocking new possibilities for cross-chain communication and shared security models.

In addition to advancing zkEVM classification, Kakarot is exploring several key innovations:

These efforts align with broader trends in Web3: simplifying user experiences, reducing friction in dApp interactions, and enabling mass adoption through scalable infrastructure.

Why OKX Ventures Backed Kakarot

Dora Yue, Founder of OKX Ventures, emphasized the strategic importance of Kakarot’s approach:

“We are honored to participate in the seed round of investment in Kakarot, a Cairo language-based zkEVM. Kakarot is built on Starknet, utilizing an innovative coding language that resolves the issue of Starknet's incompatibility with EVMs. This advancement enables the Ethereum ecosystem to flourish on Starknet.”

This investment underscores OKX Ventures’ commitment to supporting foundational technologies that expand Ethereum’s capabilities. By backing early-stage projects like Kakarot, OKX Ventures helps accelerate the development of a more interconnected, efficient, and developer-friendly Web3 landscape.

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FAQ: Understanding Kakarot and Its Impact

Q: What makes Kakarot different from other zkEVMs?
A: Kakarot stands out by combining Cairo’s provable computation model with near-EVM equivalence, allowing developers to deploy unmodified Solidity contracts while benefiting from Starknet’s scalability. Its Type 2.5 classification offers a balanced trade-off between compatibility and performance.

Q: How does Kakarot improve Ethereum scalability?
A: As a Layer-2 on Ethereum and Layer-3 on Starknet, Kakarot processes transactions off-chain and submits compressed proofs back to Ethereum. This reduces congestion and lowers fees while maintaining security through cryptographic validation.

Q: Can I use existing Ethereum tools with Kakarot?
A: Yes. Thanks to opcode-level equivalence, developers can use familiar tools like Truffle, Hardhat, and MetaMask when building or interacting with dApps on Kakarot.

Q: What is the significance of moving toward a Type 1 zkEVM?
A: Achieving Type 1 status would mean full equivalence with Ethereum’s execution layer — including identical gas metrics and state roots — enabling native proof generation by Ethereum nodes and deeper integration with Layer-1 consensus.

Q: Is Kakarot open source?
A: Yes, Kakarot is an open-source project with active community contributions. This transparency fosters trust, encourages collaboration, and accelerates innovation.

Q: When will Kakarot launch its mainnet?
A: While no official mainnet date has been announced, the team is preparing for the launch of its first testnet, marking a critical milestone in its development roadmap.

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Final Thoughts

As Ethereum continues to grow, so does the need for scalable, secure, and compatible solutions that empower developers and users alike. Kakarot represents a bold step forward in this journey — combining community-driven development with advanced cryptography to build a bridge between ecosystems.

With strategic support from OKX Ventures and deep integration into the Starknet stack, Kakarot is well-positioned to become a cornerstone of the next-generation Web3 infrastructure. Whether it's enabling gas-efficient dApps or paving the way for fully verifiable Layer-1 interactions, the project exemplifies how innovation thrives at the intersection of open collaboration and technical excellence.

The future of scalable blockchains isn't just about speed — it's about seamless interoperability, developer freedom, and trustless security. And with projects like Kakarot leading the charge, that future is already taking shape.