Coinbase invested in the development of the Ethereum sidechain with a throughput of 500 transactions per second

The developers of the New Jersey-based startup Offchain Labs announced the release of an alpha version of the Arbitrum protocol, which, they said, is capable of processing more than 500 transactions per second. This is written by CryptoBriefing .

Arbitrum hits over 500 TPS * for each contract *. And it can support thousands of contracts at the same time. https://t.co/VT2Idfoncd https://t.co/uTtpRiVIme

– Offchain Labs (@OffchainLabs) September 5, 2019

The new solution also attracted the interest of the venture division of the largest US cryptocurrency company Coinbase, which invested an unnamed amount in the company. Offchain Labs previously raised seed investments of $ 3.7 million from Pantera Capital, Compound VC and Blocknation.

According to the developers, Arbitrum is an Ethereum sidechain and has several innovative features that distinguish it from other network scaling solutions. The key one is called the AnyTrust Guarantee mechanism, which ensures network stability even if all validators pursue malicious goals. Allegedly, even if there is only one “honest” node online, decentralized applications (dApps) will work correctly.

“This is the main difference from other systems that try to scale through a majority voting system among validators, which significantly complicates the calculation of who you can trust ,” said Offchain Labs co-founder Ed Felten in a Forbes comment.

The connection between Arbitrum and the Ethereum core network is ensured by a smart contract called EthBridge. Written in Solidity, it was created on Offchain Labs own compiler, which reduces the amount of data processed on the main network.

Note that the co-founder of Offchain Labs Ed Felten in the past served as deputy chief technical officer at the White House, and the core of the company itself is researchers at Princeton University.

The current version of Ethereum supports about 15 transactions per second, which, as the founder of the platform Vitalik Buterin recently admitted , “practically nothing.” According to him, to influence the global economy, it is necessary to achieve tens of thousands of transactions per second. Buterin hopes that the transition to Ethereum 2.0 with the Proof-of-Stake consensus mechanism and sharding will help in this.

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