ETH Rollup Arbitrum is releasing a new major update and it will halve fees, increase transaction speeds and make it easier for Ethereum Virtual Machine apps to build on top of Arbitrum, so let’s read more in today’s Ethereum news.
Off-Chain Labs, the company behind the Ethereum scaling solution and the ETH Rollup Arbitrum, announced the launch of Nitro, which is a new update to the bullish technical rollup stack. According to Off-Chain, the update to Arbitrum will bring cheaper fees, speed up transactions and make it easier for native ETH apps to connect to the Layer 2 chain.
Off-chain founder Steven Goldfeder said Arbitrm’s fees, which were typically around 50 cents to $1 before the update, will be reduced by at least 50%. The rollups like Arbtrim scale the ETH network by processing the transaction and executing smart contracts with the mini computer programs running on the blockchains on separate rollup-specific chains. The data provided on Arbitrumgas is bundled and returned to ETH, where the network players can check whether the data is valid.
WE TALK ABOUT NITRO LIVEhttps://t.co/6r9ufX8lRs
— Arbitrum (@arbitrum) April 6, 2022
Last week, the $625M heist from the Ronin sidechains revealed a potential vulnerability of sidechains that, unlike the rollups, do not have their security through a Layer 1 blockchain. Offchain announced Arbitrum AnyTrust chains, which are also a cheaper and faster alternative to optimistic rollup. Arbitrum is now Ethereum’s largest rollup solution with $2.5 billion in total value locked according to DefiLama.
As recently reported, KyberSwap launched DEX on Arbitrum’s Layer 2 network, making it the seventh network, or scaling solution, alongside ETH, Polygon, Fantom, Avalanche, Cronos, and BSC. KyberSwap joins SwaprETH, Curve Finance, Balancer LAbs and SushiSwap as the DEXs available on Arbitrum.
The KyberSwap team pointed to Ethereum’s network congestion and the cost of on-chain transactions as issues that can be solved through Layer 2 scaling and other efforts. According to Etherscan, the costs for transactions on Ethereum are quite low at 28 Gwei. However, fees can spike to over $100 during congestion times, and by comparison gas fees on Arbitrum range from $0.50 to $0.69 according to the L2 data aggregator’s L2 fees. Arbitrum was the only L2 to see net growth in users by address last week, outpacing the growth rate of BNB Smart Chain as well as other established Layer 2 solutions.
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