It’s another of those blockchain industry startups that have set a big goal. Offchain Labs, a New Jersey company, is about to release Arbitrum. Arbitrum can be thought of as a second layer compatible with each blockchain, second level on the first level, so sitting on the actual blockchain and offering several advantages.
The young company can now look forward to a cash injection of 3.7 million US dollars. Offchain Labs was joined by others from Pantera Capital, an investor in the blockchain sector.
Offchain Labs
The team behind Offchain Labs is highly decorated. Finally, Ed Felton is co-founder, a professor of computer science at the elite Princeton University and a former White House CTO. The team also includes a number of PhD technocrats, including Steven Goldfeder and Harry Kalodner. Ed Felton was more than confident in an interview with the news portal cryptoninjas.net:
With Arbitrum, we’ve created a protocol that works as a second layer on any block chain, allowing programs and transactions to be processed off-chain, either through sidechains or state channels. With improved privacy and scalability, coupled with lower costs of running a smart contract, Arbitrum will be of tremendous benefit to developers and businesses alike.
We believe it will unleash a new wave of quality, blockchain apps and services. In Arbitral, the potential to improve blockchains lies dormant, because it not only increases speed many times, but also minimizes the flow of contract and information for businesses and individuals without them losing sight of the Big Picture , Developers can benefit because it’s compatible with Ethereum. So they can push Ethereum’s services, dApps, or tokens to arbitrage, exploiting the benefits of [arbitrariness] – better privacy and scalability.
Lightning for Ethereum
The prime example of off-chain state channels is the private payment channels in Bitcoin’s Lightning Network. This is nothing more than a second layer on the actual Bitcoin Blockchain. As can be seen from the quote, Arbitrum is primarily an analog scaling solution for Ethereum. This should create additional incentives for programmers and companies. How important such a solution is, we have captured elsewhere.
When the Arbitrum prototype is launched, Offchain Labs first wants to envisage the gaming industry, financial apps, and federated blockchains to establish arbitrage in the marketplace. Slightly smaller rolls are seen by Joey Krug, Deputy Investment Manager at Pantera Capital, who bakes the Offchain Labs team.
Also published on Medium.