Ethereum Scaling Solution Arbitrum Now Available for Public Use, Developer Offchain Labs Raises More Funds at a $1.2B Valuation
Polychain Capital, Ribbit Capital, Redpoint Ventures, Pantera Capital, Alameda Research, and Mark Cuban participated in the $120 million Series B funding round.
Ethereum Layer 2 scaling solution Arbitrum has finally launched on mainnet.
This week, the team announced that faster transactions at lower costs than Ethereum are now available for public use. Arbitrum processes transactions on a sidechain using optimistic rollups technology and then regularly settles them in batches to the main blockchain.
Since opening Arbitrum to developers in May, the team noted that they had sent over 400 teams’ mainnet access, with dozens of them already deploying their contracts on Arbitrum. It further reiterated that Arbitrum is still in beta which means, they'll be “closely monitoring the launch and maintaining the ability to do fast upgrades and even pause the system should it become necessary.”
Full decentralization, however, is the ultimate plan for Arbitrum.
Scaling Ethereum Gradually
At launch, Arbiturm will have a speed limit of 80,000 arbgas per second, roughly matching the current capacity of Ethereum L1, which will be increased over time once the system stabilizes. And while cheaper than Ethereum L1, if the network’s capacity is reached, then L2 can congest, and fees can rise here as well.
Also, it currently supports 33 assets, including USDC, WETH, and WBTC, with additional tokens to be added to the network on an ongoing basis.
Using Optimistic Rollups means it takes roughly a week for withdrawals to be confirmed on Arbitrum. While a UX drawback, the team says, it will allow them time to pause and respond to potential security events should they occur.
Arbitrum also announced a public bug bounty program managed by Immunefi as an additional layer of security diligence.
Interact with Dapps
The mainnet launch means the public can now interact with decentralized apps on Arbitrum, starting with Uniswap, Balancer, and other protocols.
DEX Uniswap congratulated the Offchain Labs team on Arbitrum's mainnet launch that makes Uniswap v3 Arbitrum deployment open for public use while reminding users to be careful as it’s a new piece of software in need of rigorous battle testing.
“As DeFi adoption continues to ramp up, bringing scalability to Ethereum has become more necessary than ever. Thankfully, Layer 2 solutions like Arbitrum have the potential to provide additional bandwidth without sacrificing the ideals of decentralization and security that we value so highly.”
Offchain Labs, the developer of Arbitrum, which turned three years old last week, finally fulfilled its mission of delivering gas relief to Ethereum users with this launch.
On Tuesday, the firm also announced that it had raised $120 million in a Series B funding round after raising $20 million in Series A in April led by Lightspeed Venture Partners, valuing the company at $1.2 billion.
New investors include Polychain Capital, Ribbit Capital, Redpoint Ventures, Pantera Capital, Alameda Research, and Mark Cuban. Arbitrum’s competitor Optimism is backed by VC firm a16z.
“There’s just so much more demand than there is supply on Ethereum,” co-founder and CEO Steven Goldfeder said in an interview.
“Rollups give you the security derived from Ethereum but a much better experience in terms of costs.”