To fix Ethereum's shortcomings, Off-chain labs
To fix Ethereum's shortcomings, Off-chain labs have raised $120 million, and it will use its Arbitrum Product.
When the majority of the enthusiasts feel lucky to enjoy the world of cryptocurrency, more blockchain developers are coming out of the blue taking active interest in the scaling issues faced by decentralized apps on the Ethereum blockchain. Only last year, we have seen that the blockchain network has become popular. Still, the volume of transactions is stable, and the network is operating to its near limits. So it leads to a reduction in the speed of the transaction and higher fees on the crowded chain.
The developers behind Ethereum have been contemplating significant upgrades to the current blockchain to resolve such issues. Since cryptocurrency and blockchain are at their starting phases, it becomes an arduous task to transition the network. To quick-fix this, developers are trying to offer a solution called Layer 2 Rollup scaling, which handles the transactions in a better, quicker and cheaper way. The Layer 2 Rollup scaling is on the top of the Ethereum network and helps record the transactions to the Ethereum blockchain even if it is in batches.
There has been a talk among the blockchain developers about the Layer 2 landscape as it is at its early phase, and they are also concerned about the early players in the space. Arbitrum One is a rollup network that has been developed by Off-chain Labs that has built good support and momentum since the company launched the beta version in May 2021. There were about 350 teams who signed up for the as stated by the company.
The company has managed to attract some high-profile partners like Chainlink and Uniswap. These partners have promised early support for the solution. The company has also encouraged investors' interest as TechCrunch raised around $20 million Series A in April 2021. After that Series, B followed quickly led by Lightspeed Venture Partners. Lightspeed Venture Partners closed this month, and the company is valued at $1.2 billion. The other investors who have joined the race are Alameda Research, Pantera Capital, Redpoint Ventures, Mark Cuban, Ribbit Capital and Polychain Capital.
Arbitrum technology has had a long run to reach public access. This technology was first developed at Princeton. Professor Ed Felten and co-founders Steven Goldfeder, CEO and Harry Kalodner gave a more profound vision in a research paper published in 2018 before building the company and getting the license for the technology. Ed Felten was the deputy U.S. chief technology officer serving in the Obama White House. On the other hand, Steven Goldfeder wrote a book on cryptocurrencies. You can search for the first discussion of Arbitrum technology on YouTube.
Off-chain Labs is ready to launch the Arbitrum One mainnet known as TechCrunch. The company had to undergo wraps and limited access to begin launching the technology finally.
There are a few direct competitors for the company's technology solution, like the obvious one is a16z-backed Optimism. Arbitrum offers smooth compatibility with the decentralized applications for running Ethereum. The competitors have to work harder to develop such technology to be compatible with their roll-up solution. Arbitrum is planning to obtain support all over the Ethereum network and the product's crypto exchanges. Almost all the Ethereum developers are aware of the stakes involved. These all lead to Arbitrum having a big selling point.
Steven Goldfeder stated about the Ethereum to TechCrunch that demand exceeds the supply of Ethereum and further said that the Rollups provide the security and a significantly more cost-effective experience.
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