Blockchain Firm Offchain Labs Releases Alpha Of Open-Source Scaling Solutionbr>
New Jersey-based Offchain Labs has announced the launch of the Alpha 2 version of its scaling solution that can be easily integrated to any Etherum application.
Led by a former White House Deputy Chief of Technology and a team of U.S.-based academics, Offchain Labs aims to make smart contracts more private, secure, and scalable using a combination of protocol design, incentives, and virtual machine architecture. The firm has invented Arbitrum, a blockchain agnostic Layer 2 scaling solution that incentivizes parties to agree off-chain how a virtual machine would act in order to improve transaction throughput, speed, and privacy.
In a press release, the company said that the Alpha version of its open-source Arbitrum code is capable of supporting thousands of simultaneous Ethereum contracts, each of which can process over 500 transactions per second. According to the firm, the Arbitrum system takes significant burdens away from the main chain and requires very little additional development for the benefits it affords.
“Just like regular Ethereum-based apps, smart contracts are developed using Solidity with the minor difference being that these are compiled by the Arbitrum compiler,” the company said. “Offchain Labs has built a smart contract named the EthBridge, which enables back and forth communication between Arbitrum and Ethereum. Artbitrum also offers an AnyTrust Guarantee that distinguishes the solution from other private chain or sidechain solutions. The AnyTrust Guarantee, built directly into the software, ensures that as long as a single validator is online and acting honestly, the dApp will execute correctly, even if all other validators attempt to cheat the system.”
The firm also announced that it has received an investment from Coinbase Ventures, the investment arm of crypto exchange Coinbase, to accelerate development and encourage more developers to use Arbitrum. The investment adds to an initial seed round earlier this year, which saw Offchain Labs raise $3.7 million in funding from some of the most notable industry names including Pantera Capital, Compound VC and Blocknation.
“We believe that blockchains have a distance to go in terms of being enterprise-ready, with the primary issue being scalability,” said Ed Felten, Co-Founder of Offchain Labs and Former Deputy US CTO. “We’ve built a solution that enables dApp developers to improve the performance of their applications without any significant cost or development time. Coinbase Ventures has invested in some of the most well-known and innovative companies in the space and we’re thrilled to see that they share in our vision to make blockchains ready for prime time.”