Arbitrum Will Cut Transaction Fees On March 18

Arbitrum immediately cut the cost of network transactions. (Photo; Doc. Bitexpert)

JAKARTA The recent implementation of the Ethereum Dencun upgrade has succeeded in cutting network transaction fees has also triggered other blockchains to do the same. Recently, Arbitrum (ARB) was rumored to be cutting transaction fees.

Offchain Labs, the core developer behind Arbitrum, has activated an upgrade of ArboOS 20 or Atlas on the Arbitrum network. With Atlas now starting operation, Arbitrum will implement a reduction in transaction fees and be implemented further on March 18.

The Atlas upgrade, originally intended to reduce layer 1 (L1) posting costs through EIP-4844, will soon be followed by an additional cost reduction. Arbitrum projects that Atlas will reduce the cost of a compressed L1 surplus per byte from 32 gwei to zero and lower the base cost of layer 2 (L2) from 0.1 gwei to 0.01 gwei. This change is expected to allow the Arbitrum One application to take advantage of the new price structure without modification.

For your information alone, Gwei is a unit used to measure gas costs in Ethereum transactions. Gas in the context of crypto transactions is a unit that measures the amount of computational work required to carry out transactions or operations on the Ethereum network. Gwei itself stands for giga-wei, where wei is the smallest denomination of Ether, an Ethereum asset.

Offchain Labs notes that Arbitrum's RaaS (Rollups-as-a-Service) providers such as Altlayer, Caldera, Conduit, and Gelato have committed to improving existing Orbit networks to support the increase in Atlas and enhancement of the Ethereum Dencun.

Atlas's upgrade also saw Arbitrum go hand in hand with EVM security standards through support for the EIP-6780, which Offchain Labs said would be an important foundation for future upgrades to the EVM.

Steven Goldfeder, CEO and Co-Founder of Offchain Labs expressed optimism about the Atlas upgrade that will open up more functions for the crypto community.

"We are very pleased to see Arbitrum DAO has decided to upgrade to ArboS Atlas, which will provide significant benefits to communities in terms of increasing transaction prices," Goldfeder was quoted as saying by CryptoBriefing.