Ethereum Layer 2 scaling solution Arbitrum (ARB) has rolled out its latest update known as 'Atlas', which is expected to significantly reduce transaction costs on the network.
The update was implemented as part of the ArbOS 20 upgrade by Offchain Labs, a core contributor to Arbitrum.
The Atlas update integrates the use of blob transactions, a new transaction type introduced in the last Dencun update. Blobs offer a new way for chains to store information on Ethereum, different from the traditional “calldata” approach. This innovation paved the way for significant reductions in transaction fees for Layer 2 networks, including Arbitrum.
Following the Dencun update launch, several Layer 2 networks such as Optimism, Base, and Starknet had implemented blob transactions and reported significant decreases in average transaction fees. Arbitrum became the latest network to integrate blobs after implementing the necessary software updates.
For Arbitrum, Offchain Labs predicts a decrease in the network's minimum base fee from 0.1 gwei to 0.01 gwei, indicating a decrease of approximately tenfold. Arbitrum's average transaction fee, previously $0.5, could potentially drop to around $0.05 following the Atlas upgrade.
*This is not investment advice.
