The latest upgrade is expected to significantly reduce transaction costs and unlock new use cases.
Offchain Labs, the core developer behind Arbitrum, has announced the successful activation of the ArbOS 20 upgrade, known as “Atlas”, on the Arbitrum network. The upgrade brings Ethereum’s Dencun support with the implementation of blobs to achieve efficient data processing at lower costs. Now that the Atlas upgrade is operational, Arbitrum is ready implement further reductions execution transaction costs on March 18.
The blobs have landed on Arbitrum! 💙
🐡 ArbOS 20 “Atlas” is now live, blobs are in effect, reducing data posting costs.
⛽ Additional execution gas rate reductions for Arbitrum One go live on March 18.
More details below 👇https://t.co/amVT5EnQWE pic.twitter.com/pyS9AVORFF
— Arbitrum (💙,🧡) (@arbitrum) March 14, 2024
Initially, the Atlas upgrade will target tier 1 (L1) booking rate reductions through EIP-4844, with additional rate reductions coming next week. According to Arbitrum, Atlas is ready to do that bring down the L1 surplus fee per compressed byte from 32 gwei to zero and reduce the basic compensation of layer 2 (L2) from 0.1 gwei to 0.01 gwei. As a result of these changes, Arbitrum One applications should be able to take advantage of the new pricing structure without having to make any changes.
ArbOS Atlas is also introducing significant reductions in other fees for Arbitrum One, and is expected to activate on March 18:
1️⃣ L1 surplus allowance. Reduce excess cost per compressed byte from 32 gwei to 0.
2️⃣ L2 basic rate. Reduce the minimum from 0.1 gwei to 0.01 gwei.
— Arbitrum (💙,🧡) (@arbitrum) March 14, 2024
Additionally, Layer 3 Rollup chains built on top of Arbitrum One will automatically see lower compensation, while it is self-governing Orbit L2 rollup chains are encouraged to adopt ArbOS Atlas and enable blob posting to achieve the same benefits.
If noted by Offchain Labs, Arbitrum RaaS (Rollups-as-a-Service) providers such as Altlayer, Caldera, Conduit, and Gelato have committed to upgrading existing Orbit chains to support the Atlas upgrade and the Ethereum Dencun upgrade.
The Atlas upgrade also brings Arbitrum in line with EVM security standards support for EIP-6780. According to Offchain Labs this lays the foundation for future improvements to the EVM.
Steven Goldfeder, CEO and co-founder of Offchain Labs, believes the Atlas upgrade will unlock more use cases for the crypto community.
“We are pleased to see that the Arbitrum DAO has voted to upgrade to ArbOS Atlas, which one will bring significant benefits to the community in terms of improved transaction prices. This specific upgrade strongly aligns with our mission to continue to scale Ethereum, making it more useful to the masses and the native crypto community,” said Goldfeder.
By optimizing transaction fees, Atlas will enable use cases previously considered impractical, such as gaming, SocialFi and DeFi exchanges, Offchain Labs said.
Ethereum’s Dencun upgrade, which went live earlier this week is expected to significantly reduce gas rates on L2 blockchains, and so on increase adoption of the Ethereum ecosystem. However, an immediate reduction in fees is not guaranteed as the team behind these projects will need to upgrade their architecture to adapt to the new developments new standard.