The Arbitrum Nitro Upgrade Introduces Many Crucial Benefits – CryptoMode

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The Arbi­trum net­work is slat­ed to under­go a big upgrade short­ly. The tran­si­tion to Nitro will solve a few key issues and intro­duce more inno­v­a­tive fea­tures. It is a promi­nent devel­op­ment for the pop­u­lar net­work, although it may not nec­es­sar­i­ly yield a price increase. 

Arbitrum Nitro Is On The Horizon

Inno­va­tion occurs around the clock in the blockchain world. New devel­op­ments can help improve exist­ing net­works and enhance their appeal. While most peo­ple focus on Ethereum and The Merge, net­works like Arbi­trum will try to improve their mar­ket posi­tion too. The Nitro release for this net­work will not only improve net­work capac­i­ty and trans­ac­tion costs with­out inter­rupt­ing the user experience.

Con­trary to what some peo­ple may expect, the “migra­tion” to Arbi­trum Nitro should not result in down­time or a chain split. Instead, every­thing should occur organ­i­cal­ly, although net­work par­tic­i­pants will imme­di­ate­ly ben­e­fit from reduced fees and high­er trans­ac­tion through­put after the switch. That also means the net­work will become a lot faster, which is excel­lent news for Dapps built on this blockchain. 

One of the key ben­e­fits of Nitro is how devel­op­ers can write and com­pile the L2 Arbi­trum engine through stan­dard lan­guages and tools. It is no longer required to rely on cus­tom-designed cod­ing and the asso­ci­at­ed com­pil­er. More­over, Geth’s core is com­piled into Arbi­trum, mark­ing a cru­cial net­work milestone. 

Fur­ther­more, the ArbOS com­po­nent is slimmed down and rewrit­ten in Go. That enables cross-chain com­mu­ni­ca­tion and bet­ter batch­ing and com­pres­sion to min­i­mize costs from L1 trans­ac­tions. Even though Arbi­trum is a fair bit cheap­er to use than Ethereum, it nev­er hurts to intro­duce even cheap­er options wher­ev­er possible. 

A Potential Boost For DeFi

One of the main rea­sons peo­ple flock to Arbi­trum is to reduce costs on DeFi activ­i­ties. Despite the bear­ish mar­ket con­di­tions, the L2 net­work is one of the few solu­tions not­ing DeFi TVL growth this month. A sig­nif­i­cant gain of over 18% in 30 days brings Arbitrum’s Total Val­ue Locked to over $919 mil­lion. Sur­pass­ing $1 bil­lion again is the next objec­tive, although the bear­ish pres­sure will make that pret­ty tricky. 

What is inter­est­ing is how the L2 solu­tion is home to over 100 DeFi pro­to­cols. That includes pop­u­lar Ethereum-based projects like Curve, Uni­wap, and Aave V3, but also solu­tions like GMX, Star­gate, Radi­ant, and Synapse. It is a good col­lec­tion of pro­to­cols cov­er­ing deriv­a­tives, lend­ing, DEX­es, yield farm­ing, options trad­ing, and CDPs. 

Cryp­to­Mode pro­duces high qual­i­ty con­tent for cryp­tocur­ren­cy com­pa­nies. We have pro­vid­ed brand expo­sure for dozens of com­pa­nies to date, and you can be one of them. All of our clients appre­ci­ate our value/pricing ratio.
Con­tact us if you have any ques­tions: [email pro­tect­ed]
None of the infor­ma­tion on this web­site is invest­ment or finan­cial advice. Cryp­to­Mode is not respon­si­ble for any finan­cial loss­es sus­tained by act­ing on infor­ma­tion pro­vid­ed on this web­site by its authors or clients. No reviews should be tak­en at face val­ue, always con­duct your research before mak­ing finan­cial commitments. 

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