Hi everyone ! Today we will be talking about a new way to improve ETH scalability and reduce transaction costs with Arbitrum orbits !

Evolution of ETH

The Ethereum network follows an approach that incorporate rollups for its evolution. As such, second-layer solutions are at the core of the project's development for the blockchain. However, above these Layer 2 solutions, Layer 3 (L3) solutions are starting to emerge. The Arbitrum Orbit project aims to foster the development of these L3 solutions.

L3

Who has never dreamt of using decentralized finance (DeFi) or purchasing non-fungible tokens (NFTs) while paying minimal transaction fees? With Arbitrum orbits it will soon come true.

Due to their technical characteristics, Arbitrum Orbits could be considered as third-layer solutions, also known as Layer 3 (L3). To understand the importance of the different layers in Web3, let's delve into the functioning of Ethereum.

The decentralized global computer created by Vitalik Buterin serves as a first-layer solution (L1) enabling the deployment of decentralized applications (dApps). Its objective is to optimize network security, decentralization, and scalability. However, achieving high performance in all three areas simultaneously is quite challenging.

For this reason, second-layer solutions (L2) have emerged. While the main blockchain (Ethereum) focuses on decentralizing the network and maximizing security, these new blockchains tackle scalability enhancements.

Thus, the L2 layers created by Arbitrum significantly reduce network fees across various Web3 applications. By compressing a large number of transactions, these L2 solutions retain only the necessary information for recording them on the Ethereum network.

However, second-layer solutions still function as versatile applications that, in cases of high demand, may experience congestion, leading to increased transaction fees.

Conclusion :

Thus, Arbitrum has chosen to create Arbitrum Orbits. By specializing in specific use cases, these Layer 3 solutions once again enhance scalability while benefiting from the ecosystem of their parent blockchain.

Disclaimer : This not a financial advice, it is for information purpose only. Always do your own research !

Thumbnail source : blockcast.it

As always, thank you for reading !