Ethereum Rollup Arbitrum to Release Major Update

Offchain Labs, the company behind Ethereum (ETH) scaling solution Arbitrum, announced this week the testnet launch of Nitro – a test environment for a pending major update to the optimistic rollup’s technical stack.

According to Offchain, the update to Arbitrum will cheapen fees, speed up transactions, and make it easier for native Ethereum apps to interface with the Layer 2 chain.
Offchain founder Steven Goldfeder told CoinDesk that Arbitrum’s fees, which were usually around 50 cents to $1 before the update, will be cut by at least 50%.
Rollups like Arbitrum scale the Ethereum network by processing transactions and executing smart contracts – the mini-computer programs that run on blockchains – on separate rollup-specific chains.
The data generated on Arbitrum gets bundled up and passed back down to Ethereum, where Ethereum network actors can check whether the data is valid.
Last week, a $625 million theft from Ethereum’s Ronin sidechain showed the potential vulnerability of sidechains, which, unlike rollups, do not inherit their security from a layer 1 blockchain.
In March, Offchain also announced Arbitrum AnyTrust chains – a cheaper, faster, more centralized alternative to its optimistic rollup.
Arbitrum is currently Ethereum’s largest rollup solution, with nearly $2.5 billion total value locked (TVL), according to DefiiLlama.

Edit: August 30, 2022 15:24 UTC: Clarifies that the update is in testnet.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Sam Kessler

Sam is CoinDesk's deputy managing editor for tech and protocols. He reports on decentralized technology, infrastructure and governance. He owns ETH and BTC.

Follow @skesslr on Twitter

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.