Token-less Ethereum Layer 2 Arbitrum Chooses ETH as its Native Asset
- Mainnet beta of much-awaited Arbitrum is now live on Ethereum and is open to developers.
The Ethereum layer 2 scaling solution has begun onboarding infrastructure and projects. And as the team noted in its official announcement, “the developer interest and enthusiasm for Arbitrum has exceeded our wildest expectations.”
More than 250 teams have already reached out to them, asking for access to Arbitrum’s developer launch. To ensure a fair launch, Arbitrum One is initially open to all those who requested access.
The team has given its mainnet chain the name Arbitrum One — while Arbitrum is the technology, Arbitrum is the flagship chain.
The team and partners are supporting the Arbitrum chain, but “it’s possible that at some point in the future there will be other rollup chains that also use the Arbitrum technology, and to make sure this never gets confusing,” the differentiation has been made.
It will be opened to end-users once there’s a quorum of live projects that have deployed on the network and are ready to go live.
Right from the start, Arbitrum boasts of reducing fees by over 50x, which is the most exciting thing given that during periods of high volatility in the market, the fees on the Ethereum network skyrocket, making it simply unusable for smaller users.
However, Arbitrum is not free as it costs to operate the chain and support infrastructure. The majority of the fees collected on Arbitrum are used to pay for posting calldata on Ethereum, which goes to Ethereum miners.
Interestingly, unlike sidechain Polygon, which has its own token MATIC, which has rallied over 10,000% this year so far, Arbitrum has no token of its own, which means people can't really bet on its growth. MATIC 3.86% Polygon / USD MATICUSD $ 1.39
$0.053.86% Volume 1.45 b Change $0.05 Open $1.39 Circulating 6.29 b Market Cap 8.73 b 2 d Polygon And 0x Team Up to Devote $10.5 Million Into Attracting New Users & Developers 5 d Layer-2 Scaling Solution Polygon Records Continued Growth, But May Not Bring Fees Down on Ethereum 1 w Bitwise Replaces ATOM with MATIC in Crypto Index; Okcoin Integrates Polygon for Cheaper & Faster DeFi Entry
So, Arbitrum has chosen ETH as its native asset, which means fees will be paid in ETH on L2.
The price of Ether is currently around $2,430, down 44% from its ATH of $4,380 on May 12.