Arbitrum Goes Chain-Agnostic
Orbit Chains to be Deployed Beyond Ethereum
06.08.24
Tech News
rwa_cover-1.png

Arbitrum DAO, which governs the Arbitrum ecosystem, recently conducted a vote to decide whether to expand its Orbit chains to networks other than Ethereum. The proposal was approved with 84.5% in favor and only 0.01% choosing to abstain.

You can find the full proposal here.

Arbitrum Orbit

The Arbitrum Orbit framework enables developers to design custom Layer 2 and Layer 3 rollup chains. These chains offer significant customization options, allowing developers to modify key elements such as the supported gas token, governance mechanism, data availability layer, and privacy features. Arbitrum Orbit is a framework allowing developers to create bespoke Layer 2 and Layer 3 rollup chains. Orbit chains can be customized, allowing developers to change core features including the network’s supported gas token, governance mechanism, data availability layer, and privacy features.

Currently, Arbitrum has 50+ orbit chains in development and is diversified into:

  • 22 Defi Chains
  • 17 Gaming Chains
  • 5 NFT Chains
  • 12 Infra and Tooling Chains

The Proposal

In January, the Arbitrum Foundation rolled out the Arbitrum Expansion Program, which allows third-party projects to fork and adapt Arbitrum's codebase for deployment on any blockchain that employs Ethereum’s security model. In exchange, these projects participate in a revenue-sharing arrangement.

The latest proposal makes it possible for new Orbit chains to be launched on additional blockchain networks, including Bitcoin, Binance Smart Chain, and Cosmos. This adjustment responds to interest from projects wishing to create Orbit chains on blockchains beyond Ethereum, prompting the foundation to reassess the program’s current limitations. These changes could lead to more Orbit deployments and increased revenue for the Arbitrum DAO.

What’s Next?

Keep in mind that the Arbitrum Expansion Program is only 8 months old, and this new authorization is set to accelerate its growth by enabling the launch of Orbit chains on multiple blockchain networks beyond Ethereum.

Arbitrum is well-positioned to maintain its leadership in the Layer 2 ecosystem and possibly expand further. However, the Layer 2 market is becoming increasingly saturated, with many competing solutions striving for prominence. This heightened competition is compounded by the fact that many leading projects are shifting their focus towards launching their own Layer 1 solutions instead of supporting additional Layer 2 platforms. As the market evolves, Arbitrum will need to strategically navigate these challenges and capitalize on new opportunities to sustain and enhance its market position.

Summary

The approval to expand Arbitrum Orbit chains to networks beyond Ethereum marks a significant milestone for the Arbitrum ecosystem. This decision opens new opportunities for developers and projects interested in leveraging the capabilities of Arbitrum across various blockchain networks.

This move also hints at potential revenue growth and expansion opportunities for Arbitrum DAO, marking it as a notable player in the evolving Web3 space. As the ecosystem continues to grow and adapt, it will be interesting to see how this decision influences the future of decentralized finance and blockchain technology.

Share this article