Ethereum scaling trailblazer Arbitrum unveiled the Arbitrum Orbit expansion program on January 19, 2024. This initiative aims to revolutionize Ethereum-based chains, offering a self-service avenue for creating Layer 2 (L2) and Layer 3 (L3) Solutions. The program’s core principles are flexibility and innovation, featuring a permissionless profit-sharing model.
Insights into the Arbitrum Orbit Expansion Program
The Arbitrum Orbit expansion program is dedicated to supporting the developer community, empowering them to create tailored L2 and L3 chains for solutions such as optimistic rollups, ZK-Rollups, optimums, and validiums. Layer 2 addresses scalability and transaction speed challenges in the Layer 1 network, playing a crucial role in blockchain adoption, as evidenced by its $15.42 Billion market cap according to Cryptorank.
A portion of the program’s profits contributes to the Arbitrum Developers Association, highlighting Arbitrum’s commitment to both the chain’s and the community’s growth. The program caters to the increasing demand for specialized blockchain solutions, offering highly customized chain configurations for addressing specific issues, including native account abstraction, gas token customization, private blockchain security, and data availability layers.
The project serves as a hub for potential solutions, enabling the design of unique token economic models like the esToken dual-token model and supporting XAI in creating a distinctive approach similar to GMX and the staked version of esXAI. Notably, L2 implementations by Arbitrum One and Nova are already reaping benefits, while popular crypto wallet provider Metamask introduces new staking services for Ethereum users to operate their validator nodes.
What Comes Next?
Arbitrum One and Nova have already experienced positive outcomes from embracing L3s, providing a pathway for innovation and creativity without the need for revenue contributions, ensuring rewards for developers.
The program announcement marks a significant stride towards the future of the blockchain environment, poised to meet diverse community needs. It not only supports the creation of custom Ethereum-based chains to address current requirements but also contributes to building a robust future for blockchain technology.
Launched in 2021, Arbitrum has solidified its position as a preferred blockchain in the Layer 2 space, notably serving as one of the pioneers in decentralized perpetual exchanges, enabling leveraged trading through a non-custodial exchange.
