Labs ethereum arbitrum 120m

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labs ethereum arbitrum 120m

Offchain Labs Inc., a provider of solutions to scale up the Ethereum blockchain, today announced that it has raised $120 million in funding to launch its Arbitrum One mainnet to the public.

The Series B funding round was led by Lightspeed Venture Partners and joined by Polychain Capital, Ribbit Capital, Redpoint Ventures, Pantera Capital and others.

The Ethereum blockchainis a decentralized public ledger for verifying and recording transactions, enabling users to create, publish, use and make money from applications on the platform and use its Ether cryptocurrency as payment. These decentralized applications on the network are known as “dApps.”

But Ethereum has long had issues with scaling up and with congestion as its popularity has increased.


The company has also quickly piqued investor interest. The startup tells TechCrunch it raised a $20 million Series A in April of this year, quickly followed up by a $100 million Series B led by Lightspeed Venture Partners, which closed this month and valued the company at $1.2 billion. Other new investors include Polychain Capital, Ribbit Capital, Redpoint Ventures, Pantera Capital, Alameda Research and Mark Cuban.

Offchain Labs co-founders Felten, Goldfeder and Kalodner.
Image Credits: Offchain Labs

It’s been a fairly lengthy ride for the Arbitrum technology to public access. The tech was first developed at Princeton — you can find a YouTube video where the tech is first discussed in earnest back in early 2015.

Steven holds a PhD from Princeton University and Ed and Steven are two of the authors of the leading textbook on cryptocurrencies, Bitcoin and Cryptocurrency Technologies.

“We are excited to partner with our investors who understand the importance of scaling Ethereum and bringing the Ethereum ecosystem to the masses,” said Steven Goldfeder, co-founder and CEO, Offchain Labs. “The tremendous support we’ve seen from developers across the globe validates our mission to be the first to marry the world of FinTech and Defi.”

Offchain Labs will use the new funding to scale the team, further develop the Arbitrum One ecosystem, build out new scaling solutions in its pipeline and invest in R&D.

Labs ethereum arbitrum 120mm

In the case of Arbitrum One, it is also compatible with the Ethereum virtual machine, so developers do not need to change their contract code and can do so without compromising security.

Offchain Labs was co-founded by Chief Scientist Ed Felten, former deputy U.S. chief technology officer in the Obama White House and professor at Princeton University. Felten began work on Arbitrum while at Princeton alongside co-founders Chief Executive Steven Goldfeder and Chief Technology Officer Harry Kalodner who published the technology in 2018.

“The tremendous support we’ve seen from developers across the globe validates our mission to be the first to marry the world of Fintech and Defi,” said Goldfeder.

Arbitrum One went into beta May of this year and has amassed a number of launch partners, including winning the high-profile Reddit Scaling Bake-off.

Labs ethereum arbitrum 120mah

According to Offchain Labs, more than 350 more teams have signed up to use the rollup network, giving it broad appeal in the blockchain industry.

Offchain Labs intends to use the influx of new funds to further develop its ecosystem, scale its internal developer team, build out new scaling solutions and invest in research and development.

“We’ve had the pleasure of working closely with Steven, Ed and Harry,” said Amy Wu, partner at Lightspeed. “Their dedication to the Ethereum developer community is second to none and they have the best, easiest-to-use scalability product. That’s why over 400 projects have chosen to launch with Arbitrum, including Reddit.”

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Labs ethereum arbitrum 120mh


Transaction times and fees constantly burden developers even as markets surrounding the ecosystem have exploded over the past year.

Ethereum’s core developers have been attempting to resolve these issues with upgrades to the protocol itself but resolutions are still months to a year away. As a result, so-called Layer 2 solutions are being sought out, and Arbitrum One is one such solution.

Layer 2 solutions execute transactions outside the main Ethereum layer using a developer-friendly mechanism called “optimistic rollups” that batch transactions, allowing them to execute quickly and with less congestion. That means they happen faster and with lower transaction fees.

When they complete, they are also recorded back to the main Ethereum blockchain.

It processes transactions on a sidechain that uses optimistic rollups technology and then regularly settles them in batches to the main Ethereum blockchain.

Arbitrum is the first scaling solution by Offchain Labs and the project is working on more solutions to scale Ethereum, said Goldfeder. “We will use the newly raised capital to grow our team and continue to invest heavily in R&D,” Goldfeder added.

There are currently 14 people working for Offchain Labs. Goldfeder said the project is hiring in all areas but expects the majority of its upcoming hires to be in engineering.

Offchain Labs’ Series B round was led by Lightspeed Venture Partners. As part of the deal, Ravi Mhatre from Lightspeed has also joined the project’s board.

Offchain Labs built its platform in response to an increasing need for scaling Ethereum without compromising on the security of Ethereum as the base layer. Having EVM compatibility means that projects can deploy without changing the code in their contracts.

“We’ve had the pleasure of working closely with Steven, Ed and Harry,” said Amy Wu, Partner at Lightspeed. “Their dedication to the Ethereum developer community is second to none and they have the best, easiest-to-use scalability product. That’s why over 400 projects have chosen to launch with Arbitrum, including Reddit.”

Broad Ecosystem of SupportArbitrum is launching to end-users as scaling platforms surge in popularity, with key projects in the Ethereum space and the protocol seeing tremendous traction in recent months with many of Arbitrum’s launch partners.

But if they intentionally or unintentionally accept an invalid transaction, anyone can challenge them on Ethereum.

This is where Arbitrum and Optimism’s approach differs. Optimism limits smart contract sizes to what can be re-executed on Ethereum, while Arbitrum allows users to dissect smart contracts into pieces and prove fraud at the level of a single contract instruction, according to Bandak.

Goldfeder told The Block that Arbitrum “resolves disputes interactively and minimizes the amount of on-chain computation necessary to resolve disputes.”

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only.

You can find more information on how to join the Offchain Labs team here.

About Offchain LabsOffchain Labs is a venture-backed and Princeton-founded company that is developing Arbitrum, an “Optimistic Rollup” scaling solution for Ethereum. Arbitrum instantly scales apps, reducing costs and increasing capacity, without sacrificing Ethereum’s security. Porting contracts to Arbitrum requires no code changes or downloads as Arbitrum is fully compatible with most existing Ethereum developer tooling.
Arbitrum has launched Arbitrum One on Ethereum mainnet and the team is already working with hundreds of projects that are building on Arbitrum One.

Offchain Labs raised $120 million led by Lightspeed Venture Partners in its Series B financing Tuesday, aiming to expand Ethereum contracts to meet the growing demand for Ethereum transactions.

Other investors include Polychain Capital, Ribbit Capital, Redpoint Ventures, Pantera Capital, Alameda Research, Mark Cuban, etc., participating in this financing.

Offchain Labs stated that it would use the funds raised to further develop the “Optimistic Rollup” extension solution Arbitrum for layer 2 of Ethereum.

As part of the financing agreement, Lightspeed’s co-founder Ravi Mhatre also joined the company’s board of directors.

Another Partner at Lightspeed, Amy Wu, responded to this investment:

“Their dedication to the Ethereum developer community is second to none and they have the best, easiest-to-use scalability product.

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