Arbitrum Mainnet goes live and at the same time the Ethereum scaling project secures over 120 million US dollars in new funding – Mark Cuban is also one of the investors.
Arbitrum is a project by Offchain Labs, which specializes in the scaling of Ethereum. In contrast to Polygon, the scaling solution relies on so-called optimistic rollups. Optimistic Rollups combine several transactions in the ETH network into a single transaction, process them outside of the Ethereum blockchain and then only transmit the transaction data back to the Ethereum mainchain.
With this mechanism, Arbitrum manages to comprehensively scale Ethereum transactions. If you want to find out more about Optimistic Rollups, you can read this article from BTC-ECHO.
Over 400 projects from the Ethereum ecosystem rely on Arbitrum
Offchain Labs only started the beta phase of Arbitrum for developers last May. Since then, over 400 different projects have already started building their smart contracts on the scaling solution.
In addition, some DeFi heavyweights are currently developing on Arbitrum – including Aave, SushiSwap, MakerDAO and Uniswap. In addition, the social media platform Reddit has announced that it will launch its own network based on Arbitrum’s technology.
Arbitrum offers the best and easiest scaling solution for Ethereum. That’s why over 400 projects chose to develop on Arbitrum, including Reddit.
Amy Wu, Lightspeed Ventures
It is therefore hardly surprising that Arbitrum, with a valuation of 1.2 billion US dollars, is already one of the so-called unicorn companies in the crypto space. In technical jargon, a unicorn refers to a startup company with a market valuation of over a billion US dollars.
New round of funding brings Arbitrum an additional $ 120 million
On yesterday, August 31st, the Arbitrum mainnet went public. As a result, every developer is now free to use the technology. In addition, Offchain Labs announced the successful completion of another financing round.
In a series B financing round, the ETH scaling project was able to collect more than 120 million US dollars from investors. The round was carried out by Lightspeed Venture Partner. The most renowned donors include Polychain Capital, Pantera Capital, Alameda Research and Mark Cuban.
The next few months will show whether Arbitrum can hold its own in the duel of scaling solutions. The fact is, however, that the mainnet launch comes at a time when ETH transaction costs are persistently high due to the increasing popularity of non-fungible tokens (NFT).
If you want to find out more about NFT, please stop by our academy.