Triaconta Weekly #258

The following topics will be addressed in this weekly:

  • Bundle performance
  • Winners & Losers
  • What is Arbitrum ?

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Bundle performance
The revision of the Bundles has been completed and all Bundles with automatic revision are once again up to date with the current crypto market. Bitcoin remained near the important 200-week average around $26,350 all week, and it is time for a decision where we hope Bitcoin can rebound and head back towards $30,000. There is some optimism about a deal regarding the debt ceiling in America and most tech companies have reported good figures and expectations. Bundles are also moving sideways with some profit-taking in the DeFi sector.

Big3:
1 Month: -3.20% | 7D: +0.09% | 24H: +1.59%

Top30:
1 Month: -10.22% | 7D: -2.80% | 24H: +0.36%

Penny:
1 Month: -14.22% | 7D: -1.75% | 24H: +0.24%

DeFi:
1 Month: -15.21% | 7D: -5.27% | 24H: +0.41%

Winners & Losers

Kava (+13%) remains from what was a mostly speculative +40% rise Tuesday at the network upgrade. Top 30 and PennyStock Tron (+8%) this week and also one of the few positive exceptions in the crypto market last month at +19%. PancakeSwap (-17%) is still losing to Uniswap (-6%) and Fantom (-11%) may soon suffer from problems at Multichain. Former Pennystock Celer Network (-11%) continues to fall despite their successful bridge solution with other blockchains. Algorand (-11%) while its CEO recently indicated that more and more developers are busy on the platform.

What is Arbitrum ?

Arbitrum is a layer 2 solution for the Ethereum blockchain, designed to improve transaction speed, increase scalability, lower costs and improve network privacy. It allows users to perform transactions and programs outside the main network and lets them verify and bundle on Arbitrum before being committed back to Ethereum’s main chain.

Why ?
The Ethereum blockchain’s transaction processing capacity is limited and long traffic jams regularly occur. Then, to still get an important transaction picked up, you can choose to pay more fees. This makes the transaction attractive to processors, and they can prioritize the transactions that earn them more. If the traffic jam goes on long enough, people start paying higher and higher fees to get their transaction ahead of others. This creates incredibly high transaction fees in addition to congestion. Many layer 2 solutions have been built, which solve this problem by validating the transactions on another blockchain and capturing them bundled on Ethereum’s main network. This can be compared to the bus or train that carries more people at once and should potentially reduce road congestion. Again, by the way, the same effect applies that when congestion is reduced and transaction costs are lower, people start using a service more and the benefit disappears again. Therefore, there is always a need for new layer 2 solutions.

How ?
Arbitrum not only validates transactions but also has its own “computer,” the Arbitrum Virtual Machine. This allows all program steps of a smart contract to be executed on Arbitrum and the results to be written to Ethereum in a single pass. Whereas on the Ethereum network each validator must execute the program steps to verify that they produce the same outcome, with Arbitrum this is limited to a group of validators belonging to each decentralized application.
Another enhancement that Arbitrum employs are Optimistic Rollups. Here, parties assume that all new chain additions are true unless they are disputed by a network user within a week. Only then is a check done. Just as contracts between parties in the real world only go to court if there is a dispute.

Who ?
Arbitrum was developed by Offchain Labs, a blockchain research and development company founded in 2018 by Ed Felten, Steven Goldfeder and Harry Kalodner. The company first introduced the solution via a presentation and the Arbitrum white paper (PDF) at Princeton University in 2018. Ed Felten was then a professor of computer science and public affairs at Princeton. Arbitrum has long functioned without its own token. That was only introduced in 2023 to transfer control of this blockchain project to the community and thereby transform Arbitrum into a Decentralized Autonomous Organization (DAO).

Several well-known projects use Arbitrum for faster transaction processing. These include Uniswap, Sushiswap, Curve and Abracadabra (formerly Spell token).

Future
The existing protocol is now called Arbitrum One and is growing successfully in DeFi. In addition, Offchain Labs has also developed Arbitrum Nova. It uses a technique called Nitro, which relies on a Data Availability Committee (DAC) to ensure that transaction data is always available and can be verified by anyone. The DAC consists of 12 reputable members from the Web2 and Web3 space, such as Reddit, Coinbase, Binance and Chainlink. The DAC provides certification of data for each batch of transactions submitted. Arbitrum Nova offers ultra-low transaction costs and focuses on applications that have a lot of user interaction such as games and social networks.

The Arbitrum team is now particularly focused on interoperability, as they strive to create a seamless experience for users and developers across blockchains. This includes working on integrations with other layer 2 scalability solutions, as well as exploring potential partnerships with other blockchain networks. The future of the Arbitrum ecosystem looks bright and offers plenty of room for innovation and growth in technology, fields of application and price.

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