ETH rollup Arbitrum releases a new major update and it will halve fees, will increase transaction speeds, and will make it easier for the Ethereum Virtual Machine apps to build on Arbitrum so let’s read more in today’s latest Ethereum news.
Off-chain Labs the company behind Ethereum’s scaling solution and the ETH Rollup Arbitrum announced the launch of Nitro which is a new update to the optimistic rollup technical stack. As per Off-chain, the update to Arbitrum will bring cheaper fees and will speed up transactions, and make it easier for the native ETH apps to interface with the Layer 2 chain.
The off-chain founder Steven Goldfeder said that Arbitrm’s fees which were usually around 50 cents to $1 before the update and will be cut at least 50%. The rollups like Arbtrim scale the ETH network by processing the transaction and executing smart contracts with the mini-computer programs that run on the blockchains on separate rollup specific chains. The data provided on Arbitrum gas is bundled up and passed back down to ETH where the network actors can check whether the data is valid.
WE’RE LIVE TALKING ABOUT NITROhttps://t.co/6r9ufX8lRs
— Arbitrum (@arbitrum) April 6, 2022
Last week, the $625 million theft from the Ronin sidechains showed a potential vulnerability of sidechains which, unlike the rollups, do not have their security from a Layer 1 blockchain. Offchain announced Arbitrum AnyTrust chains which is also a cheaper and faster alternative to the optimistic rollup. Arbitrum is now Ethereum’s largest rollup solution with a $2.5 billion total value locked as per DefiLama.
As recently reported, KyberSwap DEX launched on Arbitrum’s layer-2 network and the move puts it as the seventh network or scaling solution along with ETH, Polygon, Fantom, Avalanche, Cronos, and BSC. KyberSwap joins SwaprETH, Curve Finance, Balancer LAbs, SushiSwap as the DEXs available on Arbitrum.
The KyberSwap team pointed to Ethereum’s network congestion and the cost of on-chain transactions as problems that can be solved via layer-2 scaling and other efforts. The cost of transactions on Ethereum is quite low at 28 gwei according to Etherscan. However, fees can spike to over $100 during periods of congestion and by comparison, gas fees on Arbitrum range from $0.50 to $0.69 as per the L2 data aggregator L2 fees. Arbitrum was the only L2 to see the net growth in users by addresses last week and outpaced the growth rate of BNB Smart Chain as well as another well-established layer 2 solutions.