Fractal scalability on Ethereum (ETH)? Arbitrum is unveiling its Arbitrum Orbits, new customisable blockchains designed to increase the number of transactions on the ecosystem founded by Vitalik Buterin. With this new solution, layers 3 will be able to be created on Arbitrum
Arbitrum announces the arrival of a layer 3
Who hasn’t dreamed of using decentralised finance (DeFi) or buying non-fungible tokens (NFT) with such low transaction fees that their presence is imperceptible to even the smallest purse?
Arbitrum, one of the leading scalability solutions for the Ethereum blockchain (ETH), reveals the launch of Arbitrum Orbits, a technology that allows developers to create their own blockchains with increased scalability.
Today, we’re releasing tooling that will make building your own Arbitrum Orbit chain easier than ever.
To start, we’re providing a quickstart guide & tools to help you with building your Orbit DevNet chain!
start building via docs: https://t.co/syIhWswIlD
– Offchain Labs (@OffchainLabs) June 21, 2023
Today we’re releasing tools that will make it easier than ever to create your own Arbitrum Orbit channel. For starters, we’re providing a quick start guide and tools to help you create your own Orbit DevNet channel!”
These blockchains will be fully customisable by developers. For example, the tokenomics of these new networks, their governance systems and the authorisations assigned to their users will be able to be parameterised to meet specific needs.
Arbitrum Orbits can be based on one of the second-layer (L2) solutions developed by Arbitrum, such as Arbitrum One and Arbitrum Nova.
These new blockchains will apply low transaction fees while benefiting from an interconnection with the Ethereum ecosystem, through the Ethereum Virtual Machine (EVM).
Layer 3: how does it work?
Because of their technical characteristics, Arbitrum Orbits could be considered as third-layer solutions, also known as layer 3 (L3). To fully understand the importance of the different layers of Web3, let’s take a look at how Ethereum works.
The decentralised global computer created by Vitalik Buterin is a first-layer (L1) solution for deploying decentralised applications (dApps). Its aim is to optimise network security, decentralisation and scalability. However, it is very difficult to perform well in all three areas at the same time.
For this reason, second-layer (L2) solutions have emerged. While the parent blockchain (Ethereum) focuses on decentralising its network and maximising its security, these new blockchains focus on increasing its scalability.
For example, the layer 2s created by Arbitrum considerably reduce network costs for the various Web3 applications. By compressing a large number of transactions, these L2s retain only the information needed to record them on the Ethereum network.
However, second-layer solutions remain multi-purpose applications which, in the event of very strong influence, could start to experience congestion, leading to an increase in transaction costs.
Arbitrum has therefore decided to create Arbitrum Orbits. By specialising in specific use cases, these layer 3s once again improve scalability while taking advantage of the ecosystem of its parent blockchain.