Ethereum Layer 2 Option Complete Nitro Upgrade

Key receivers

Arbitrum has completed its nitro upgrade. Arbitrum says Nitro increases transaction throughput, lowers fees and provides a better user experience for developers building applications. Now that Nitro has expanded its Arbitrum marketing exchange, the network may relaunch its Arbitrum Odyssey campaign.

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The Arbitrum Nitro update brings faster transactions, lower fees and a better user experience for developers building applications.

Optional upgrades to Nitro

The decision on Nitro is straightforward.

The Ethereum Layer 2 network successfully migrated its existing Arbitrum One network to Arbitrum Nitro on Wednesday, one year after the network's mainnet went live. Offchain Labs, the company that develops Arbitrum, announced on Twitter that it has completed the update.

Arbitrum Nitro removes the restrictions placed on the network and introduces several key improvements. Previously, Arbitrum's transaction flow was throttled to maintain network performance and stability. However, now that the network has been upgraded to Nitro, these limits have been lifted, which has greatly increased the number of transactions that the network can handle.

The Nitro update also helped verify transaction data sent back to the Ethereum mainnet. Nitro should reduce the number of zero bytes in arbitrage transaction batches, resulting in lower transaction fees for end users. Although Arbitrum offers 90 to 95% lower fees than the Ethereum mainnet, calculations indicate that by eliminating zero bytes, the Nitro update can reduce fees by 27%.

However, most of Nitro's improvements come in the form of a new prover, which can run Arbitrum's interactive fraud proofs using WebAssembly code. This means that the Arbitrum engine can now be written and developed, replacing the custom-designed language and compiler that was previously used. The result is a more streamlined and intuitive experience for those building on Arbitrum, which the team hopes will drive growth across the network.

Offchain Labs CEO and co-founder Steven Goldfeder told Crypto Briefing that the upgrade will “significantly increase network capacity and significantly reduce costs,” which should attract more projects to the ecosystem. He added that Arbitrum is “the most Ethereum-compatible coil ever created,” and that Nitro's internals are compatible with Ethereum, meaning the network can support developer and user tools built for Ethereum.

In addition to major updates to the Arbitrum mainnet, Nitro implemented the network's AnyTrust technology to provide a secure and cost-effective scaling solution for gaming and social applications. It's the same technology behind the recently announced Abritrum Nova chain, which features a “Data Delivery Committee” involving Google Cloud, FTX, Reddit, Consensys, P2P and QuickNode.

Now that Nitro has expanded its Arbitrum marketing exchange, the network may relaunch its Arbitrum Odyssey campaign. A few days after Odyssey launched in June, transaction volume spiked, causing gas fees on Layer 2 to rise even more than on the Ethereum mainnet. The campaign is designed to onboard users to the Arbitrum ecosystem, which rewards participants who complete on-chain operations with NFTs.

Arbitrum is one of several Layer 2 networks that provide scaling solutions for Ethereum. As of last year, Arbitrum One has become Ethereum's dominant Layer 2 network, with a total value of about $2.5 billion locked in by L2Beat. Goldfeder explained that its growth is completely organic, as the project does not offer ecosystem incentives such as tokens (unlike its larger competitor Optimism, Arbitrum does not have tokens).

The project uses Optimistic Rollups to split transactions and send them back to the Ethereum mainnet to increase transaction volume and reduce fees. Ethereum mainnet. Several major Ethereum exchanges have deployed their contracts on the network, including Uniswap, Curve and Aave. Arbitrum is home to several native protocols including GMX, Dopex and Vest Finance.

Disclosure: At the time of writing this piece, the author owns ETH and several other cryptocurrencies.

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