2021-08-31 19:17:44
Arbitrum - an Ethereum scaling solution - has launched and announced raising $120M in new funding...
Here's some detail from the Market Meditations Newsletter...
"Blockchain scalability is a hot topic, with Solana working hard to be an Ethereum killer. But Ethereum has momentum and there’s an important launch very soon for Arbitrum, one of the Layer 2 rollups. Let’s break it down:
To increase the speed of Ethereum and lower transaction costs, a combination of sharding the main Layer 1 network and sending computation off-chain (Layer 2) is being pursued.
There are three major types of Layer 2 scaling: state channels, Plasma and rollups – for connoisseurs of detail, Vitalik Buterin beautifully breaks down the differences here.
Rollups come in two flavours: Optimistic or Zero Knowledge (ZK). The former relies on Fraud Proofs (“Prove I’m Wrong”), whereas the latter relies on Validity Proofs (“Proof I’m Right”).
Arbitrum is an optimistic rollup that launched its beta version on the mainnet in May. Since then it has done an impressive job in attracting dApps, wallets and tools to migrate over in readiness for the official user launch. Check out their portal Arbitrum One.
It can process up to 5000 Transactions Per Second (~ 100x improvement on Ethereum’s 45 TPS), but there will be limits in place during the launch phase.
One thing to note is that optimistic rollups have a 7-day withdrawal period (the interval for fraud claims), but some projects are working on speeding this up with liquidity bridges.
And while Arbitrum itself does not currently have its own token, the same could be said about UniSwap until it airdropped one to every user…
So a Layer 2 solution at scale may be right around the corner and with mass user adoption could have a significant impact on the market and its participants, especially for those projects using the protocol. To learn more about Layer 2 competitors, check out this comprehensive report by Delphi Digital."
Links:
News: Arbitrum Launches on Mainnet and Raises $120M in New Funding to Scale Ethereum -
https://www.theblockcrypto.com/post/116148/ethereum-scaling-solution-arbitrum-launches-mainnet-raises-120-million-funding
Medium Post: August Launch Announcement - https://offchain.medium.com/a-is-for-arbitrum-a-is-for-august-71391582d95b
Delphi Layer 2 Rollup Report - https://www.delphidigital.io/wp-content/uploads/2020/12/Layer-2_DelphiDigital.pdf
385 viewsRyan A, edited 16:17
C
