Coinbase Ventures Invests In Offchain Labs’; Ethereum Expansion Solution For Smart Contracts

By September 9, 2019Ethereum
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Offchain Labs, a business-focused startup, today launched its Alpha version of its Ethereum extension solution, Arbitrum. It also announced funding for Coinbase Ventures, the investment arm of popular exchanges.

The release did not disclose the amount but said the funds were designed to speed up development and encourage more developers to join.

The New Jersey-based startup, led by Ed Felten, a former White House vice president of technology, also raised $3.7 million in April. “Arbitrum makes Ethereum contracts faster, more scalable, and more private. It’s compatible with Ethereum, so it’s easy for developers to adopt,” Felten told Decrypt. “The main challenge we face is to design a reliable, secure and sufficiently usable system and eliminate performance bottlenecks. ”

Ethereum is the most popular public blockchain used to build decentralized applications (dApps) and smart contracts. Many businesses agree, but a significant number of companies are reluctant to build companies in the public chain that are hampered by expansion problems. So, although it was converted to Ethereum 2.0.

In the process of greatly increasing the speed and privacy of transactions, Ethereum developers and independent start-ups are racing to build extended solutions to fill the gaps and provide businesses with the security and reliability they desire.

Offchain Labs’ separate research from Princeton University shows that its blockchain-independent Arbitrum can be easily integrated into an Ethereum application, processing more than 500 times per second, and code and transactions are executed offline via any side chain or state. Contracts are developed using Solidity code, just like regular Ethereum dApps, but compiled by the Arbitrum compiler.

The bridge enables the network to communicate with the Ethereum main chain.

But perhaps the most interesting and controversial feature is the platform’s “AnyTrust Guarantee”, which, according to Offchain Labs, can perform correctly as long as one authenticator is online and acting honestly, even if all other authenticators try to trick the system. According to the project’s academic paper, this is valid because any honest manager can force the system to act on its code.

Anyone interested in the results can act as a manager or appoint someone they trust. “This is in contrast to other systems that try to gain scalability through most voting systems among the authenticators.

In these cases, knowing who to trust becomes a complex calculation,” Felten explained to Forbes. In 2018, Deloitte says up to 95% of companies are investing in blockchain technology projects.

But businesses often require information confidentiality, so private blockchain utilization has been rising, and many are not convinced to move their system architectures to decentralized public networks.

The Ethereum community is designing its own solutions, especially under the PegaSys project. It seems that businesses will soon have the option of using Ethereum to meet all their needs.

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