Offchain Labs Develops Ethereum Network Scaling Solution

Offchain Labs startup, which received a $ 3.7 million investment from Coinbase Labs in April, has launched an alpha version of the Arbitrum solution, designed to scale the Ethereum network.

It is reported that, thanks to Arbitrum, each smart contract on the Ethereum blockchain will be able to process up to 500 transactions per second. Interestingly, since this is an open source project, any company will be able to create decentralized applications that can handle large amounts of data, while maintaining privacy.

To use Arbitrum, new smart contracts will need to be compiled using a special program. Transactions will be performed offline through the EthBridge smart contract, which connects the Arbitrum system to the Ethereum blockchain. The AnyTrust Guarantee special mechanism ensures that the decentralized application runs correctly even when validators try to trick the system.

In fact, the Arbitrum solution can be used in any blockchain, but at the moment, the developers have focused on creating and testing the version for Ethereum.

“We think blockchains need to go a long way before becoming usable in a corporate environment. One of the main problems is scalability. We have created a solution that allows developers to increase the performance of their applications with almost no increase in development time, ”said Offchain Labs co-founder Ed Felten.

In the spring of this year, Ethereum co-founder Vitalik Buterin said that Ethereum developers now face three main problems: network scalability, user privacy and the ease of use of the blockchain.