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Arbitrum Launches Atlas Upgrade to Enhance Efficiency and Reduce Fees

Arbitrum (ARB), a prominent Ethereum (ETH) layer-2 solution, has unveiled its Atlas upgrade, a significant milestone aimed at lowering transaction fees and enhancing network efficiency.

The Atlas upgrade, activated by Offchain Labs, the primary developer behind Arbitrum, introduces the ArbOS 20 upgrade to the Arbitrum network.

As part of the ArbOS 20 update, the Atlas upgrade integrates Ethereum’s Dencun support and introduces blob transactions, which streamline data processing at reduced costs. With the Atlas upgrade now live, Arbitrum plans to implement further reductions in execution transaction fees on March 18th.

Initially, the Atlas upgrade focuses on reducing layer-1 (L1) posting fees through EIP-4844, with additional reductions scheduled for the following week. Arbitrum aims to decrease the L1 surplus fee per compressed byte from 32 gwei to zero and lower the layer-2 (L2) base fee from 0.1 gwei to 0.01 gwei. Applications on Arbitrum One will benefit from the new pricing structure without requiring modifications.

Offchain Labs states that Layer 3 Rollup chains built atop Arbitrum One will automatically experience reduced fees. Orbit L2 rollup chains are encouraged to adopt ArbOS Atlas and enable blob posting for similar benefits.

Arbitrum RaaS providers like Altlayer, Caldera, Conduit, and Gelato have committed to upgrading existing Orbit chains to support the Atlas upgrade and Ethereum Dencun upgrade.

Moreover, the Atlas upgrade aligns Arbitrum (ARB) with EVM’s security standards by incorporating support for EIP-6780, paving the way for future EVM improvements.

By optimizing transaction costs, the Atlas upgrade makes previously impractical use cases like gaming, SocialFi, and DeFi exchanges viable.

The recent implementation of Ethereum’s Dencun upgrade, aimed at reducing gas fees on L2 blockchains, is expected to drive greater adoption of the Ethereum ecosystem. However, immediate fee reductions depend on project teams upgrading their architecture to accommodate the new standard.

Arbitrum’s decision to retract a proposal involving a donation of approximately $1.28 million worth of ARB tokens to support legal expenses for Tornado Cash developers highlights the collaborative nature of the cryptocurrency ecosystem and underscores the importance of legal clarity and responsibility within the industry.

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