Arbitrum launches ‘Atlas’ upgrade to integrate Blob usage

Offchain Labs as a key contributor decision ARB

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We implemented the Dencun upgrade within the Arbitrum ecosystem through the ArbOS 20 upgrade, known as “Atlas”.

The goal of Arbitrum’s Atlas upgrade is to reduce Ethereum Layer 2 transaction costs by incorporating the Blob transaction functionality that has become available since the recent launch of Dencun. It has been implemented following governance approval from Arbitrum DAO.

The Dencun upgrade introduced yesterday brings a new transaction type called Blob to Layer 2 networks. These blobs create a new way for the chain to store information on Ethereum, breaking away from the traditional “call data” approach and paving the way for significant reductions in transaction fees on layer 2 networks, including Arbitrum.

Integrating blobs requires the layer 2 chain itself to perform a software update, and Arbitrum is the latest network to do so.

Layer 2 networks such as Optimism, Base, and Starknet, which implemented blob transactions shortly after Dencun, have already seen significant reductions in average transaction fees.

For Arbitrum, Offchain Labs expects the network’s minimum base fee to decrease from 0.1gwei to 0.01gwei, a 10-fold reduction. Arbitrum’s average transaction fee, previously $0.50, could potentially decrease to around $0.05 after the Atlas upgrade.

“We are pleased to see that Arbitrum DAO has decided to upgrade to ArbOS Atlas,” said Steven Goldfeder, CEO and Co-Founder of Offchain Labs. “This will bring significant benefits to the community in terms of improved transaction prices.”

Offchain Labs said that several service providers, including Arbitrum-focused Altlayer, Caldera, Conduit, and Gelato, will support the transition of individual Orbit chains using Arbitrum’s software stack. Offchain Labs also clarified that ArbOS Atlas upgrades can be implemented by the Orbit chain without approval from the Arbitrum DAO governance process.

Arbitrum is the most widely used layer 2 network on Ethereum based on number of active wallets. It also boasts the highest total value among layer 2 solutions at approximately $3.5 billion and supports popular decentralized apps such as Uniswap, GMX, and Aave.

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