Offchain Labs

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Web3 Ecosystem?
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Expansion
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Scaling Solutions
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Offchain Labs develops Arbitrum, a suite of layer-2 scaling protocol for the Ethereum blockchain. Arbitrum Rollup uses optimistic rollup technology to execute transactions in batches off-chain and connects to the Ethereum blockchain to log back transaction data for finality. Optimistic rollup is considered optimistic, as it assumes off-chain transactions are valid and does not publish proofs of validity for transaction batches posted on chain. It also uses compression techniques to reduce the amount of data posted onto Ethereum. The company claims Arbitrum Rollup can process ~40,000 transactions per second.

Arbitrum Rollup supports EVM languages and uses the same remote procedure call (RPC) interface as Ethereum, which allows smart contracts to be transferred from Ethereum to Arbitrum without requiring any changes in coding. To transact on Arbitrum, users are required to bridge Ether (ETH) or ERC-20 tokens, as the platform does not have its own native token. Arbitrum Rollup was developed primarily for DeFi and NFT applications and had over 200 dApps on its platform as of June 2022.

In August 2022, Offchain Labs launched Arbitrum Nova, the second scaling solution in the Arbitrum ecosystem. It is designed primarily for web3 gaming and social applications, which tend to have high transaction volumes. Nova is built on Arbitrum’s AnyTrust technology, where a data availability committee certifies and validates transaction data off-chain and posts the certifications to the Ethereum network.

Additionally, the company also developed a permissionless validation protocol called Bounded Liquidity Delay (BoLD), which protects users from delay attacks, which occur when a malicious actor attempts to prevent or slow down transactions, and  Tandem, a partner studio designed to assist select projects in blockchain application development.

Key customers and partnerships

The company formed a partnership with Chainlink, a middleware Web3 infrastructure company, to launch Chainlink Cross-Chain Interoperability Protocol (CCIP) on Arbitrum One. CCIP allows developers to build secure applications that can send messages, transfer tokens, and initiate actions across blockchains.


HQ location:
New York NY USA
Founded year:
2018
Employees:
1-10
IPO status:
Private
Total funding:
USD 123.7 mn
Last Funding:
USD 100.0 mn (Series B; Aug 2021)
Last valuation:
USD 1.2 bn (Aug 2021)
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