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Arbitrum (ARB), a top Ethereum (ETH) layer-2 solution, has recently launched its Atlas upgrade, a significant move to reduce transaction fees and enhance network efficiency.
Arbitrum’s Atlas upgrade is now live
Offchain Labs, the main developer behind Arbitrum, has announced the successful activation of the ArbOS 20 upgrade, called “Atlas,” on the Arbitrum network.
As part of the ArbOS 20 update, the Atlas upgrade incorporates Ethereum’s Dencun support and introduces blob transactions to streamline data processing at a lower cost. With the Atlas upgrade now live, Arbitrum plans to implement further reductions in execution transaction fees on March 18th.
At first, the Atlas upgrade focuses on reducing layer-1 (L1) posting fees through EIP-4844, with more reductions scheduled for next week. Arbitrum aims to decrease the L1 surplus fee per compressed byte from 32 gwei to zero and lower the layer-2 (L2) base fee from 0.1 gwei to 0.01 gwei. This will benefit applications on Arbitrum One without requiring any modifications.
According to Off Chain Labs, Layer 3 Rollup chains built on top of Arbitrum One will automatically experience reduced fees. Meanwhile, self-governed Orbit L2 rollup chains are encouraged to adopt ArbOS Atlas and enable blob posting to enjoy similar benefits.
The Atlas upgrade aligns Arbitrum (ARB) with EVM’s security standards by including support for EIP-6780, paving the way for future EVM enhancements.
Off Chain Labs emphasizes that by optimizing transaction costs, the Atlas upgrade will make previously impractical use cases like gaming, SocialFi, and DeFi exchanges feasible.
The recent implementation of Ethereum’s Dencun upgrade, aimed at reducing gas fees on L2 blockchains, is expected to drive greater adoption of the Ethereum ecosystem. Immediate fee reductions depend on project teams upgrading their architecture to accommodate the new standard.
Arbitrum’s Nitro upgrade, released in August 2022, focused on enhancing network capacity and speed to address scalability challenges in the Ethereum ecosystem. This upgrade improved transaction throughput and efficiency, setting the stage for a more robust Layer 2 solution.
The Arbitrum DAO decided to withdraw a proposal to donate around $1.28 million worth of ARB tokens to cover legal expenses for Tornado Cash developers Roman Storm and Alexey Pertsev due to concerns raised by token holders about potential legal liabilities.
The withdrawal of the proposal, involving a donation of approximately $1.28 million worth of ARB tokens, was prompted by concerns from token holders regarding potential legal risks associated with the donation.
The willingness of the Arbitrum community to provide financial support for legal matters underscores the collaborative nature of the cryptocurrency ecosystem and emphasizes the importance of legal clarity and responsibility within the industry.
