Arbitrum – Successful Nitro upgrade, but what about a native cryptocurrency? – CryptoNews

One of the significant advancements in the cryptocurrency industry is the proliferation of layers 2 and other parallel networks. A technology mainly applied to Ethereum, in order to solve the problem of its slowness and transaction fees. And a strategy internal to the cryptocurrency ecosystem which has finally gone from temporary – that is to say before The Merge stage – to registered on the (more) long term. Because these “second layer” solutions could well be a more sustainable alternative than expected. Testifies to this Project Arbitrum’s recent Nitro upgradewhich occurred at the end of last week.

Ethereum’s Approach to Proof of Stake – The Merge – once again raises the question of the usefulness of its layers 2. Because the latter were mainly built in order to address the problems related to its chronic inability to manage the ever-increasing use of its network (scalability). With the main requirements, lower fees and increased speed during transactions still registered on its blockchain.

But ultimately, the new version of Ethereum should not offer much cheaper transactions than the previous one, according to its developers. And his network may well still need alternative solutions. This in order to allow to absorb a part of its activity, why not specific to a given sector (DeFi, NFT, gaming, etc.). As the competition seems to want to do with, for example, formulas like the Subnets of the Avalanche project (AVAX). And, in the case of Ethereum, the latest “Nitro” upgrade from layer 2 Arbitrum.

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Arbitrum One – Successful Nitro Upgrade!

The Arbitrum project stands out as the current leader in the field of layer 2 type Optimistic Rollup. With an operating model based on transaction management by grouping, in order to reduce the processing time and costs necessary on the Ethereum network. And a recent upgrade to the Nitro name which allows him to switch to his version Arbitrum One announced some time ago. A migration that required shutting down the network, but everything seems to have gone as planned. And “Arbitrum One is now fully back online.”

Yes, that’s right, Arbitrum One now runs on Nitro – increased throughput, lower fees, next-gen deployment architecture is on the way, and it’s all now live on the Arbitrum One mainnet

Arbitration

A migration that allows the Arbitrum network to offer significant improvements. And mainly an estimated throughput between 7 and 10 times faster than before. But also “advanced call data compression”. That’s to say an even greater reduction in transaction fees, due to a smaller amount of information to publish on its layer 1 Ethereum. As well as other innovations such as compatibility to “perfectly align the pricing and accounting of EVM operations with Ethereum”. Or “additional interoperability” whose goal is closer synchronization with the block numbers of the Ethereum blockchain.

Arbitrum One – No native cryptocurrency, but…

Nevertheless, investors in the Arbitrum project were disappointed with the lack of a native cryptocurrency launch associated with this significant upgrade. This on the model of the recent – ​​and chaotic – initiative of its main competitor that represents the project Optimism. With an OP cryptocurrency whose price was quickly thrown to the ground by “airdrop resellers”, visibly indifferent to its main community vocation. And undoubtedly at the origin of a growing distrust of the projects of the Challenge vis-à-vis these increasingly restrictive dropping operations.

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But regardless of that, the ecosystem that is currently being built on the Arbitrum network is starting to pick up some steam. With as main actor the derivatives platform GMX and its cryptocurrency of the same name. A project whose current valuation does not exceed 450 million dollars. But whose strike force seems to be self-evident in this emerging environment. We still the interoperability protocol Synapse (SYN) and its cross-chain “secure communication” system (marketcap: $250 million). And finally, but not exhaustively, the project Treasure DAO (MAGIC) whose vocation is to develop an environment dedicated to gaming and NFT tokens.

Of course, this list does not represent investment advice. It is simply an inventory of the Arbitrum ecosystem and the main projects that are currently being developed there. The remaining question to know what will be the effective future of these layers 2 once the passage of the Ethereum network to Proof of Stake has been validated for good. But don’t be impatient, because the first answers will arrive in a few days at most…

The cryptocurrency market is full of exciting initiatives and unparalleled opportunities. Reason why the FTX platform is obvious, in order to enter this digital adventure in complete safety. This while benefiting from a lifetime reduction on your trading fees (commercial link).

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Arbitrum – Successful Nitro upgrade, but what about a native cryptocurrency? – CryptoNews


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