BLOCKONOMIST
Read News

Read News For Me

Arbitrum’s Mainnet Launch Manages to Raise $120 Million in Series B Funding.

Image Source: Twitter (@arbitrum)

When it comes to developing DApps, the name that comes to our mind is Ethereum. It is indeed a top-rated platform for building Dapps, despite the growth of many other alternatives. But, what makes it challenging to adopt is the issues with its scalability. Due to the surge in the adoption of the Ethereum network, it has reached its limits which ultimately lead to congestion.

No doubt that Ethereum’s core developers are trying to solve these issues with their upgrades and on chain-tweaks, but its transition is definitely not possible, rather tricky. Hence, Layer 2 rollup scaling solutions are preferred, which can cheaply and separately handle the transactions much faster and record the transactions to Ethereum Network.

Keeping this in view, more and more blockchain developers are trying to solve the scaling issues faced by DApps. One such solution is offered by Offchain labs, known as Arbitrum. 

The Offchain labs recently launched their mainnet, and the project managed to raise $120 million in a Series B funding round. With this launch, the public can interact with DApps on Arbitrum. Till now, the developers were only able to launch and test apps on Arbitrum, but with the mainnet launch, the users will now be able to use the apps.

Notably, a total of $124 million has been arranged in three rounds of funding; $4 million in seed funding, $20 million in Series A and $120 million in Series B funding.

Let’s try to understand Arbitrum.

Arbitrum is basically a layer 2 solution that aims to improve the capabilities of Ethereum smart contracts and boosts their scalability and speed. The developers can efficiently run the Ethereum transactions and unmodified EVM contracts on Layer 2 and benefit from the security of Ethereum’s layer 1.

When the transactions are submitted on Ethereum main chain, Arbitrum records their batches by using a technique called transaction rollups. Then, it executes them on layer 2 sidechain, which is cheap and scalable. Notably, it leverages Ethereum for ensuring correct results. 

Arbitrum Virtual Machine (AVM) is the custom virtual machine of the platform, and it is where the Arbitrum Smart contracts are executed.

Arbitrum is definitely not the only platform that aims to overcome the shortcomings of the Ethereum blockchain. But, Arbitrum is indeed different from other platforms in terms of its high EVM compatibility, lower fees, and robust developer tooling. 

Its compatibility with EVM at the bytecode level makes it easy to develop on the platform because developers are not required to grasp a new language.

Closing thoughts

Arbitrum is an excellent approach to improving Ethereum Blockchain's shortcomings, including Ethereum’s high execution charges and poor efficiency. Arbitrum’s transaction rollups can effectively offload the storage and computational burden of Ethereum.