The approval of Bitcoin spot ETFs marked a significant milestone, opening new doors for traditional investors. Following this, Ethereum is poised to emerge as the next major narrative, especially with the upcoming Dencun upgrade. Central to this upgrade is EIP-4844, which aims to reduce Layer 2 (L2) transaction costs and enhance performance. Arbitrum, a leading L2 solution, is at the forefront of this evolution.
Arbitrum's ecosystem is thriving, demonstrating substantial growth potential. Offchain Labs, the developer behind Arbitrum, has introduced Arbitrum Orbit, a framework for building dedicated chains. While its adoption currently trails behind OP Stack, Arbitrum Orbit is set to accelerate the multi-chain era within the Ethereum ecosystem.
According to Steven Goldfeder, co-founder of Offchain Labs, over 50 Arbitrum Orbit chains are in development, with a projection of 150 live chains by 2024. This article explores 18 notable projects within the Orbit ecosystem, offering insights into their innovations and applications.
Offchain Labs' Core Product Suite
Before diving into the ecosystem, let's review Offchain Labs' four key products:
- Arbitrum One: An L2 Optimistic Rollup enabling seamless migration of Ethereum smart contracts with minimal modifications. It hosts 275 ecosystem applications per Arbitrum Portal and 442 per DefiLlama, with a total value locked (TVL) of $2.3 billion.
- Arbitrum Nova: Built on AnyTrust technology, it uses a Data Availability Committee for higher throughput, ideal for gaming, social apps, and high-volume dApps.
- Arbitrum Orbit: Permits permissionless creation of dedicated chains with customizable throughput, privacy, gas tokens, governance, and protocol logic. It supports EVM+ compatibility via Stylus, allowing smart contracts in Solidity, C, C++, and Rust.
- Stylus: Enhances EVM compatibility by supporting multiple programming languages.
A recent upgrade to Arbitrum Orbit allows custom ERC-20 tokens as gas fees, boosting utility and ecosystem growth for Orbit chains.
Arbitrum Orbit Ecosystem Projects
Here are 18 projects leveraging Arbitrum Orbit to innovate across gaming, derivatives, liquidity, and NFTs. These chains benefit from low-cost transactions, high throughput, customizable gas fees, governance, and flexible security models.
Arbitrum also partners with Rollup-as-a-Service platforms like Caldera, AltLayer, and Conduit to support developers in launching custom Rollups.
Xai
Xai is an L3 gaming chain built with Arbitrum Orbit's AnyTrust technology, managed by the Xai Foundation. Developed in collaboration with Offchain Labs, it targets gamers with abstracted wallets, higher gas limits, and a decentralized ecosystem. Xai's token serves as the primary currency for games and in-app purchases. Ex Populus is deploying games like Final Form and LAMOverse on Xai, with Final Form scheduled for April 2024.
👉 Explore gaming chain advancements
Frame
Frame is an L2 project for creators and collectors, built on Arbitrum Nitro. It raised funds from Electric Capital and others, with a mainnet launch scheduled for January 31.
RARI Chain
An EVM-equivalent chain governed by RARI holders and RARI DAO. It integrates with Rarible's NFT marketplace, offering low-cost transactions and credit card payments via USDC or ETH. Partners include LayerZero, Gelato, and Thirdweb.
Cometh
Cometh collaborates with AltLayer to deploy the L3 Rollup "Muster," supporting Web3 games like Cosmik Battle. It leverages Orbit's scalability and low costs.
Syndr
Syndr is an institutional derivatives protocol launching an L3 Rollup with Caldera. Its testnet is live on Arbitrum Goerli, featuring gas-free trades for users.
Meliora
An L3 chain for fixed-income and credit-based apps, using MELIORA or CREDIT tokens for gas. It emphasizes ecosystem incentives through sequencer fees and governance.
OurSong
A social music NFT platform backed by John Legend and others. It joined the Orbit ecosystem in 2023, though detailed progress remains undisclosed.
Deri Protocol
A decentralized derivatives protocol that deployed Deri V4 on Arbitrum via AltLayer, expanding cross-chain coverage.
Hook Protocol
An NFT derivatives DEX supporting perpetuals and options, with a testnet preview launched in November.
Superposition
A DeFi-native L3 offering permissionless order books and shared liquidity. It uses Orbit for throughput and account abstraction.
Nitrogen (AltLayer)
A public testnet using Celestia for data availability, reducing costs via blob transactions. It simplifies Orbit chain deployment.
Parallel Network
An L2 solution unifying liquidity across chains, supported by Socket and Pimlico. Its mainnet is open to developers, with an airdrop program hinted.
Kinto
A KYC-compliant L2 for institutional DeFi and real-world assets. It switched to Arbitrum Orbit, offering AML monitoring and community-driven tokenomics.
Avive World
A DePin and UBI project on Orbit, incentivizing social interactions via proof-of-network mechanics. Partners include OKX and AltLayer.
Fiefdom
An AnyTrust-based L3 for metaverse gaming and trading, using FIEF tokens for gas and decentralized fee sharing.
Alpha Dune Network
A loyalty-driven gaming chain powered by Caldera and Celestia, hosting games like Houndrace.
Polychain Monsters
An NFT ecosystem planning a cross-chain battle system via Orbit.
Sanko GameCorp
A game studio launching an Orbit chain for its Dream Machine console and arcade via Caldera.
Frequently Asked Questions
What is Arbitrum Orbit?
Arbitrum Orbit is a framework for building customizable L2 and L3 chains on Arbitrum. It supports Rollup and AnyTrust modes, allowing projects to tailor throughput, gas tokens, and governance.
How does Orbit benefit developers?
Developers gain scalability, low costs, and EVM+ compatibility. Custom gas tokens and privacy features enable innovative dApps without Ethereum's constraints.
What chains are built on Orbit?
Over 50 chains are in development, spanning gaming, DeFi, and NFTs. Examples include Xai, Syndr, and Kinto, each leveraging Orbit for specific use cases.
Is Orbit compatible with Ethereum?
Yes, Orbit chains are Ethereum-compatible, ensuring seamless integration with existing tools and smart contracts.
How does Orbit handle security?
Orbit chains inherit security from Arbitrum's fraud proofs and Ethereum's base layer. Projects can customize security models based on their needs.
Can users interact with Orbit chains easily?
Yes, thanks to account abstraction and gas customization, users enjoy streamlined experiences, including gas-free transactions in some cases.
Conclusion
Arbitrum Orbit is paving the way for a multi-chain future, offering flexibility and scalability for diverse applications. With projects ranging from gaming to DeFi, its ecosystem is poised for rapid growth in 2024. 👉 Discover more about Layer 2 solutions