Offchain Labs, the main contributor to Arbitration ARB
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has implemented the Dencun upgrade within the Arbitrum ecosystem via the ArbOS 20 upgrade known as ‘Atlas’.
The goal of the Atlas upgrade on Arbitrum is to reduce Ethereum Layer 2 transaction fees by integrating the blob transaction feature, which became available after the recent launch of Dencun. This was implemented following board approval by Arbitrum DAO
The Dencun upgrade introduced yesterday has equipped Layer 2 networks with a new transaction type known as blobs. These blobs create a new method for chains to store information on Ethereum, moving away from the conventional ‘call data’ approach and paving the way for significant reductions in transaction fees for Layer 2 networks including Arbitrum.
To integrate blobs, Layer 2 chains must perform software updates themselves, and Arbitrum is the latest network to do so.
Layer 2 networks such as Optimism, Base, and Starknet, which implemented blob transactions immediately after Dencun, have already significantly reduced their average transaction costs.
For Arbitrum, Offchain Labs expects a reduction in the network’s minimum base fee from 0.1 gwei to 0.01 gwei, which represents a decrease by a factor of ten. Arbitrum’s average transaction fees, which were previously $0.5, could potentially drop to around $0.05 after the Atlas upgrade.
“We are excited to see that the Arbitrum DAO has voted to upgrade to ArbOS Atlas, which will bring significant benefits to the community in terms of improved transaction pricing,” said Steven Goldfeder, CEO and co-founder of Offchain Labs.
Ecosystem support for this Arbitrum upgrade
Offchain Labs stated that several service providers, including Altlayer, Caldera, Conduit and Gelato, which focus on Arbitrum, will assist with the transition for individual Orbit chains using Arbitrum’s software stack. Additionally, Offchain Labs clarified that the ArbOS Atlas upgrade can be deployed by Orbit chains without approval from the Arbitrum DAO governance process.
Arbitrum is the most widely used Layer 2 network on Ethereum, based on the number of active wallets. It also boasts the highest total value of all Layer 2 solutions at nearly $3.5 billion, and supports popular decentralized apps such as Uniswap, GMX, and Aave.
