Due to escalating costs, Arbitrum had to end its Odyssey campaign but had vowed
to resume it once the Nitro update was available. The EVM-compatible (Ethereum
Virtual Machine) blockchain lowers transaction costs and traffic by removing
processing and data storage from Ethereum’s primary blockchain.
The transaction capacity of Arbitrum has now been increased thanks to Nitro, and
the network will probably relaunch its Odyssey Campaign. Like Optimism, the main
adversary of the optimistic rollup, the road to decentralization is likely to
include the creation of a token, which Odyssey NFTs may serve as a model for.
What Is Arbitrum?
The layer-2 feature known as the Arbitrum network, created by the New York-based
business Offchain Labs, aims to alleviate Ethereum’s network congestion by
enhancing the validation of smart contracts.
The platform uses the security offered by the Ethereum blockchain while allowing
smart contracts to operate on a separate layer to lessen network congestion.
This process, known as “transaction rollups,” involves batches of transactions
and data that are verified on the lower layer before being sent to the
blockchain of layer-1, in this instance, the Ethereum blockchain.
Aggregators, which are rewarded with ETH by Arbitrum, are the nodes that
actively validate the smart contracts supported by the Arbitrum chain and are in
charge of adding the blocks to the top layer.
The Nitro Upgrade
On August 31st, 2022, the switch from Arbitrum One to Arbitrum
Nitro was successful. The Arbitrum one mainnet live event also ends on
that day after one year. The upgrading of Arbitrum one year after its first
debut demonstrates the Ethereum ecosystem’s willingness to evolve.
According to Offchain Labs CEO and co-founder Steven Goldfeder, the scalability
problem is more like a never-ending game of cat and mouse. Because of how much
more effective this new Nitro version of level-2 Arbitrum is, the company will
be able to introduce blockchain technology to a greatly expanded audience.
More users are attracted by increased scalability, and more users again draw
attention to the scalability problem. Nitro is a fully integrated optimistic
level 2 (L2) rollup solution.
Additionally, Nitro has the sequencer, token bridges, better call data
compression, and fraud proofs. The most sophisticated Ethereum scaling stack
currently available on the market may be the Arbitrum Nitro
upgrade. Both network capacity and transaction costs will increase as a
result.
Level-2 Nitro Chain Enhancements
Nitro’s fundamental element is a novel prover that can execute the customary
interactive fraud proofs of Arbitrum over WASM (WebAssembly) code. WebAssembly
is a new type of code that can be executed in contemporary web browsers.
The L2 Arbitrum Nitro engine may therefore be written and
constructed using common languages and tools, as opposed to the specially
created language and compiler used in prior versions of Arbitrum.
Go (programming language) was recently adapted for Arbitrum OS to successfully
cut the cost on L1 and cross-chain communications with updated batching and
compression methods. Arbitrum’s transaction was effortless.
Steven Goldfeder has stated that the update will boost network capacity and cut
expenses. Additionally, it’ll draw additional initiatives into the ecosystem.
He said that the internal makeup of the Nitro update matched Ethereum and that
Arbitrum Nitro is the most Ethereum-compatible rollup ever
made. As a result, the network may support tools made for the Ethereum network
by users and developers.
The Arbitrum network now offers more security and cost-effectiveness thanks to
the Nitro update. This technology has a committee for data availability that
includes representatives from several Web 3.0 and cryptocurrency businesses,
including Reddit, Google Cloud, FTX, P2P, and QuickNode.
Ethereum: Why Is It Important?
Peer-to-peer (P2P) digital currency was made legitimate by Bitcoin, while smart
contracts, which enable the deployment of decentralized applications, were
pioneered by Ethereum.
About 40% of the cryptocurrency market capitalization is made up of Bitcoin.
With Ethereum, smart contracts were made more widely applicable for various
purposes, including borrowing, lending, prediction markets, NFT marketplaces,
exchanges, games, governance, wallets, storage, and even gambling.
Only the Beginning
This Arbitrum Nitro upgrade framework makes creating
decentralized marketplaces, virtual worlds, games, and much more feasible. The
Arbitrum tale is just getting started, despite Nitro being fully operational on
both Nova and Arbitrum One – recall that Nova has been using Nitro the entire
time.
