Arbitrum Creator Offchain Labs Acquires Prysmatic Labs, Leading Ethereum (ETH) Development Team — DailyCoin
Offchain Labs, the builder of the popular Ethereum layer 2 scaling solution Arbitrum, has acquired Prysmatic Labs, the architect behind Ethereum’s Merge, the company said in a blog post.
Prysmatic Labs is one of the main engineering teams that helped Ethereum to transition to proof-of-stake. The company built Prysm, which is is the leading Ethereum consensus client powering the proof-of-stake consensus mechanism.
“Prysmatic Labs possesses an incredibly talented team of engineers, and their dedication to the Ethereum community shows via their best-in-class product that is used broadly in the Ethereum ecosystem. We are looking forward to the integration of the Prysmatic Labs team as we work together to scale Ethereum,” said Offchain Labs co-founder and CEO Steven Goldfeder.
The acquisition points to Offchain Labs’ efforts to expand its optimistic rollup-based scaling solution Arbitrum. Arbitrum’s aim is to reduce gas fees by bundling up transactions offchain and then sending them back as a single transaction to Ethereum mainnet to validate.
The deal also points to an increasing relevance and influence of layer 2s on the Ethereum network. Preston Van Loon, Prysm Labs co-founder, said that merging their layer 1 team with Arbitrum “can allow for these technologies to iterate and deliver faster”.
Arbitrum is already the most used Etherum layer 2 chain in terms of total value locked. Over $965 million flow through the 124 protocols built on it, according to data from DefiLlama. Lido, Aave, Arbitrum, and others are among protocols deployed on Arbitrum.
Offchain Labs said that the Prysmatic Labs team will continue developing Prysm and working on other initiatives like EIP-4844 data-sharding. The teams plan to work together on joint projects in the future.
No financial terms of the deal were disclosed.
On the Flipside
- It’s unclear what initiatives both teams will work on;
- Optimistic rollups are generally seen as inferior to zero knowledge rollups. zkSync, Polygon, and others are developing zkrollup-based scaling solutions.
Why You Should Care
Ethereum currently isn’t scalable due to high gas fees. Offchain Labs’ acquisition of Prysmatic Labs shows that layer 2s are becoming more prevalent in the development of Ethereum. Merging two top-notch teams working on layer 1 and layer 2 infrastructure gives hope Ethereum can scale faster and more efficiently.
Read more about Lido’s deployment on Arbitrum:
LidoDAO (LDO) Introduces stETH Support For Layer-2 Networks Optimism And Arbitrum
Read more about Opensea’s support for Arbitrum:
OpenSea Launches Support For Ethereum L2 Arbitrum