Evening
It seems star of Ethereum Layer 2 scaling solution Arbitrum is on rise, as Blockchain analytics platform Nansen is set to support it. Just a few days ago Binance announced integration with Arbitrum too.
Nansen is a blockchain analytics platform that offers its users real time on chain data and analytics helping them to identify market trends, signals and opportunities. So far Nansen supports Ethereum, Binance Smart Chain (BSC), Polygon and Fantom chains with support for Solana coming in early in 2022.
Arbitrum uses a technique called rolling up to record batches of transactions posted on Ethereum main chain and process them on a scalable layer 2 sidechain. The whole process unburdens the Ethereum main chain by taking away complex computations and heavy data storage.
Arbitrum is currently the largest Ethereum Layer 2 network with a total sum of $2.7 Billion in defi protocols. With support from large defi players like Aave, Uniswap, and 1Inch along with largest centralized exchange Binance Arbitrum has nearly 2500 verified contracts. It has transaction processing ability of 40000 tps with a significant cost advantage over Ethereum in terms of gas fees.
Arbitrum integrating Nanson, is an indicator of major industry players are putting their weight behind it. As per Nanson they believe that Arbitrum is gonna be the future of Ethereum scaling as it is the most Ethereum Virtual Machine(EVM) compatible layer 2 solution in market. This EVM compatibility allows developers to integrate without having to rewrite the code.
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