Ethereum Layer 2 scaling solution Arbitrum announced a partnership with financial services company Circle to integrate Circle’s bridged USDC, as a custom gas token on Arbitrum Orbit blockchains. This collaboration enhances transaction processes within the Arbitrum ecosystem, offering users greater convenience, price stability, and accessibility.
This development will also allow users to pay transaction fees using bridged USDC as a custom gas token, removing the necessity to hold various types of tokens just for covering gas fees, aiming to simplify the transaction process and enhance user-friendliness.
Furthermore, as a digital US Dollar, USDC will offer price stability, pegged one to one to the US Dollar, which is essential for both users and developers. This stability ensures a predictable and reliable medium for covering gas fees. With over $1.6 billion in USDC already on Arbitrum, adopting USDC as a gas token reduces entry barriers for new users and projects on Arbitrum Orbit blockchains. This integration will simplify user interactions with the Arbitrum ecosystem by eliminating the need to convert assets.
For developers, this integration will provide an additional option for customizing Orbit blockchains and open up opportunities to apply for development grants from Circle. It also will allow for quick setup with Arbitrum Orbit Rollup-as-a-Service (RaaS) providers such as AltLayer, Caldera, and Conduit, with additional support from Ankr and Alchemy expected in the near future.
How This Layer 2 Transforms Ethereum
Arbitrum is a Layer 2 scaling solution for Ethereum aimed at improving scalability and efficiency. It employs rollup technology to boost transaction throughput and lower costs while preserving Ethereum’s security. Arbitrum comprises a suite of Layer 2 scaling solutions for Ethereum, including two active blockchains: Arbitrum One and Arbitrum Nova.
Meanwhile, its Arbitrum Orbit is an open-source framework enabling builders to deploy customized Arbitrum Rollup and AnyTrust chains. It is tailored for the Ethereum ecosystem, providing high performance, cost efficiency, and compatibility with Ethereum.
Recently, Arbitrum Orbit has become a platform for both testnet and mainnet deployments for the on-chain infrastructure providers Ankr and Asphere, as well as the Decentralized Physical Infrastructure Network (DePIN) protocol Destra Network. The partnership between these initiatives aims to develop a DePIN environment for Web3 projects on this network.
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