Arbitrum Is Ready for Nitro: L2 Solution Upgrade Will Reduce Ethereum Transaction Fees
Arbitrum, which is an L2 solution built for Ethereum, will implement a major update called Nitro on August 31 this year. With Nitro, Arbitrum network will increase transaction throughout, reduce fees charged when transferring ETH, and facilitate communication between its blockchain and that of the second largest cryptocurrency.
Second-layer protocols are tools that allow users of this virtual currency to make cheaper transfers of funds outside the major network. Many such solutions have been created for Ethereum so far. Arbitrum is one of them.
Arbitrum uses an Optimistic Rollup technology to connect large batches of off-chain transactions to smart contracts and decentralized applications before uploading them to the Ethereum network.
Yesterday was the official Nitro update date for Arbitrum. This will happen at the end of this month, namely on August 31, at 10:30 AM ET. The protocol's designers have advised that we should expect a few hours of downtime during this time.
In April of this year, Offchain Labs called Nitro the most advanced upgrade of the Ethereum scaling solution. While current transactions on Arbitrum are 90-95% cheaper than on the network of the second largest cryptocurrency, the new implementation will further reduce these costs. As for the average daily transaction fee on the ETH network, yesterday it was at $2.55. Its all-time high was around $200 this May, according to BitInfoCharts.
From the data coming from the l2fees.info platform, Arbitrum ranks 6th among the Ethereum L2 protocols when it comes to low transaction fees. Transferring ETH costs around $0.12 in it.
Author name: Albert Galeev
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