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

One of the significant advances in the cryptocurrency industry is the proliferation of layers 2 and other parallel networks. A mainly applied technology Ethereum, in order to solve the problem of its slowness and transaction fees. And a strategy within the cryptocurrency ecosystem that has finally gone from temporary – that is, before The Merge phase – to registered to (more) long-term. Because these “second layer” solutions could very well be a more sustainable alternative than expected. Witness it The recent Nitro update of Project Arbitrumoccurred at the end of last week.

Ethereum’s approach to Proof of Stake – The merger – once again raises the question of the usefulness of its layers 2. Because the latter were built primarily to do so address the problems related to its chronic inability to manage the increasing use of its network (scalability). With the main requirements, lower fees and higher speed during transactions still registered on its blockchain.

But in the end, the new version of Ethereum shouldn’t offer much cheaper transactions than the previous one, according to its developers. And his network may still need workarounds. This is to allow absorb part of its business, because it is not specific to a particular sector (DeFi, NFT, gaming, etc.). How the competition seems to want to compete, for example, with formulas such as the Subnets of the Avalanche (AVAX) project. And, in the case of Ethereum, the latest “Nitro” update from level 2 Arbitrum.

Ethereum

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Arbitrum One – Successful Nitro Upgrade!

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

Yes, that’s right, Arbitrum One now runs on Nitro – higher throughput, lower costs, next-generation distribution architecture is on the way and it’s all now available on Arbitrum One’s core network

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 is an even greater reduction in transaction fees, due to a smaller amount of information to be posted on its level 1 Ethereum. In addition to other innovations such as compatibility to “perfectly align 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 …

However, investors in the Arbitrum project were disappointed the lack of a native cryptocurrency launch associated with this significant update. This is modeled on the recent – and chaotic – initiative of its main competitor who represents the project Optimism. With an OP cryptocurrency whose price was quickly knocked down by visibly indifferent “airdrop retailers” its main community vocation. And undoubtedly at the origin of a growing mistrust of the projects of the Challenge in the face of these increasingly restrictive dropping operations.

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But regardless, the ecosystem that is currently being built on the Arbitrum network is starting to gain strength. With as the 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 evident in this emerging environment. We still the interoperability protocol Synapse (SYN) and its cross-chain “secure communication” system (market capitalization: $ 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 major projects currently under development. The remaining question to know what will be the actual future of these levels 2 once the passage of the Ethereum network to Proof of Stake has been definitively validated. But don’t be impatient, because the first answers will arrive in a few days at the latest …

The cryptocurrency market is filled with exciting initiatives and unprecedented opportunities. For this reason, the FTX platform is taken for granted, to enter this digital adventure in complete safety. This benefiting from a lifetime reduction on trading fees (trade link).

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