What can one expect from Arbitrum's 'Nitro' upgrade?

August 30, 2022 11:23 PM AEST | By Manu Shankar

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What can one expect from Arbitrum's 'Nitro' upgrade? — Image source: © Semisatch | Megapixl.com

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Highlights

The Arbitrum ecosystem is a next-generation Layer-2 solution provider for the Ethereum DApps and allows users to scale up the DApps at a lower cost.

Arbitum is set for its 'Nitro' upgrade on Wednesday (31 August).

The Ethereum token was trading at 1,573.95 with a 24-hour trading volume of US$19,32,69,85,030 at 1:10 PM (GMT +1), according to CoinMarketCap.

September month is expected to be a crucial one Ethereum blockchain. While the entire crypto community would be waiting for the much-anticipated Ethereum Merge, due on 15 September, its Layer-2 scaling solution Arbitum is also set for its 'Nitro' upgrade on Wednesday (31 August).

The Arbitrum ecosystem is a next-generation Layer-2 solution provider for the Ethereum DApps and allows users to scale up the DApps at a lower cost. Announcing the Nitro upgrade through a Twitter post, Arbitrum suggested that it may well be one of the most significant upgrades that the network has seen in the recent past.

What is the Nitro upgrade?

The Nitro upgrade will ease communication between the Arbitrum and Ethereum protocols. Besides, it is also expected to reduce the transaction cost and increase its transaction throughput. According to Offchain Labs, the Arbitrum, with its Optimistic Rollup technology, can reduce fraud and ensure a proper mechanism is set.

The Offchain Labs earlier this year in April had indicated that the Nitro upgrade would be the most advanced Ethereum scaling stack, which will see the network capacity improve drastically.

How is Ethereum crypto reacting to Nitro news?

By the looks of it, the Nitro upgrade announcement may have played its part in Ethereum's gains today. The Nitro upgrade announcement couldn't come at a more appropriate time, considering that the second largest market cap was witnessing a downfall over the weekend.

But on 30 August, the Ethereum token was trading at 1,573.95 with a 24-hour trading volume of US$19,32,69,85,030 at 1:10 PM (GMT +1), according to CoinMarketCap. Ethereum token was rallying by 6.43% over a day with a live market cap of US$1,92,12,17,01,722 with a circulating supply of 12,21,70,685 ETH coins

Whether the Nitro rally helps Ethereum gain further remains to be seen, but as market participants, it would be advisable to ensure that one does a thorough study of the market and understand the trends before making crucial investment decisions. Any decisions taken in haste or due to a lack of understanding of the market may lead to financial losses.

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