Crypto

Arbitrum is a successful update to Nitro, but what about native cryptocurrency? – CryptoNews

One of the significant advances in the cryptocurrency industry is the proliferation of layer 2 and other parallel networks. A technology mainly applied to Ethereum to solve the problem of its slowness and transaction costs. And the internal strategy of the cryptocurrency ecosystem, which has finally moved from temporary – that is, before the merger stage – to registered (more) long-term. Because these “second tier” solutions may very well turn out to be a more sustainable alternative than expected. This is evidenced by the recent update of Nitro to Project Arbitrum, which was released at the end of last week.

The approach to the transition of Ethereum to Proof of Stake – The Merge – once again raises the question of the usefulness of its two layers, the ever-increasing use of its network (scalability). With basic requirements, lower fees and increased transaction speed still registered on its blockchain.

But in the end, the new version of Ethereum should not offer significantly cheaper transactions than the previous one, according to its developers. And his network may well need alternative solutions. This allows it to absorb some of its activities, why not sector-specific (DeFi, NFT, games, etc.). As competitors seem to want to do, for example, with formulas such as the Subnets of the Avalanche project (AVAX). And, in the case of Ethereum, Arbitrum’s latest Tier 2 “Nitro” update.

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Arbitrum One is a successful Nitro update!

The Arbitrum project stands out as the current leader in the Optimistic Rollup layer 2 field. With an operating model based on transaction management through aggregation, in order to reduce the processing time and costs required on the Ethereum network. And Nitro’s recent name update that allows him to upgrade to the long-announced Arbitrum One build. A migration that required a network shutdown, but everything seems to have gone according to plan. And “Arbitrum One is now fully online again.”

“Yes, that’s right, Arbitrum One is now running on Nitro – increased bandwidth, lower fees, next generation deployment architecture is on the way, all of which is now running on the Arbitrum One mainnet.”

Arbitration

A migration that allows the Arbitrum network to offer significant improvements. And basically the flow is estimated 7-10 times faster than before. As well as “advanced call data compression”. That is, an even greater reduction in transaction costs due to the smaller amount of information that will be published on its level 1 Ethereum. As well as other innovations such as interoperability for “perfect alignment of EVM pricing and accounting transactions with Ethereum.” Or even “additional interoperability”, which aims to be in closer synchronization with the block numbers of the Ethereum blockchain.

Arbitrum One – no own cryptocurrency, but …

However, Project Arbitrum investors were disappointed by the lack of a native cryptocurrency launch associated with this significant update. It’s modeled after a recent and chaotic initiative by its archrival, Project Optimism. With the OP cryptocurrency, the price of which was quickly brought down by “airdrop resellers”, apparently indifferent to its main calling of the community. And, no doubt, the source of the growing distrust of DeFi projects in these increasingly restrictive distribution operations.

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But regardless, the ecosystem that is currently being built on the Arbitrum network is starting to gain momentum. At the same time, the main player is the GMX derivative platform and its cryptocurrency of the same name. The project, the current estimate of which does not exceed 450 million dollars. But whose striking power seems to be taken for granted in this emerging environment. There is also the Synapse (SYN) interoperability protocol and its “secure communication” internetwork system (market capitalization: $250 million). And finally, but not limited to, the Treasure DAO (MAGIC) project, which aims to develop an environment dedicated to games and NFT tokens.

Of course, this list is not investment advice. This is simply an inventory of the Arbitrum ecosystem and the major projects currently being developed there. The question remains what the efficient future of these 2 levels will be once the transition of the Ethereum network to Proof of Stake is confirmed forever. But don’t lose patience, because the first answers will come in a few days at the most…

The cryptocurrency market is full of exciting initiatives and unprecedented opportunities. That’s why the FTX platform is obvious to enter this digital adventure in complete safety. With this, you get a lifetime reduction in your trading fees (commercial link).

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