Arbitrum boosts Layer 3 network development as Polygon, BNB Chain lag behind
- Arbitrum developers Offchain Labs release Orbit to power Layer 3 chains, while Polygon and BNB Chain catch up with Layer 2.
- Analysts say Arbitrum’s new releases pass on the benefit of higher revenue to the DAO and to users.
- Arbitrum’s new release invites developers to customize and develop exclusive Layer 3 blockchains.
Developers of Arbitrum, a dominant Layer 2 scaling solution for Ethereum, launched on Thursday Arbitrum Orbit, a new tool to power Layer 3 chains in the ecosystem. Arbitrum’s competitors, Polygon and BNBChain, recently released zero-knowledge rollups.
Despite the competition in the Ethereum scaling solution ecosystem, Arbitrum seems to be keeping its dominance with its developmental updates as other solutions such as Polygon and BNB Chain are catching up with Layer 2 protocols.
Also read: Ripple receives nod to rollout digital asset services in Singapore, bolstering XRP price rally
Offchain Labs releases Arbitrum Orbit chain toolkit to power Layer 3 development
Offchain Labs, the developer of the Arbitrum ecosystem, released the Orbit chain toolkit on Thursday. This release is targeted at developers building Layer 3 chains within the crypto ecosystem.
In the Ethereum ecosystem, Layer 2 protocols scale the underlying blockchain and reduce transaction costs for users. Apart from these, Layer 3 delegates complex tasks toa so-called third chain, boosting scalability and further reducing fees.
The developers of the Arbitrum ecosystem are providing a quickstart guide and tools for protocols keen on transitioning to Layer 3.
Today, we're releasing tooling that will make building your own Arbitrum Orbit chain easier than ever.
— Offchain Labs (@OffchainLabs) June 21, 2023
To start, we're providing a quickstart guide & tools to help you with building your Orbit DevNet chain!
start building via docs: https://t.co/syIhWswIlD
Polygon, BNB Chain opt for Layer 2 updates
Arbitrum dominates the Ethereum scaling solution ecosystem with $2.17 billion in Total Value Locked (TVL), according to data from DeFiLlama, Polygon (MATIC) , considered one of the largest Layer 2 protocols, has $956.81 million in TVL, second to Arbitrum.
Polygon recently launched ZKL2, its zero-knowledge Layer 2 rollup in order to speed up transaction processing and reduce fees through higher scalability. Meanwhile, BNB Chain introduced opBNB, a Layer-2 solution powered by Optimism.
MATIC and BNB prices climbed 15.22% and 7.86%, respectively over the past week, based on data from Binance price index. ARB price rallied 25% in the same timeframe, beating MATIC and BNB both in terms of yield for holders and higher technical development.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
