Markets News Report
January 05, 2024

Arbitrum Orbit Adds Custom Gas Token Support, Expands Utility for Layer 3/2 Chains

Arbitrum Orbit Adds Custom Gas Token Support, Expands Utility for Layer 3 Chains

Arbitrum Orbit today introduced support for custom gas tokens, enabling Orbit blockchains to utilize specific ERC-20 tokens for transaction fees. Until now, Orbit chains were limited to using only Ether as the gas token. However, developers can now use select ERC-20 tokens, for handling transaction fees on their networks.

Gas tokens are digital tokens used to pay for transaction fees on blockchain networks, particularly on the Ethereum blockchain.

“The release of Arbitrum Orbit’s custom gas token capability allows teams to build their applications on L2, while also increasing their freedom to create unique native economics and token utility specific to their needs,” David Dennis, product marketing lead at Offchain Labs – the main developer of Arbitrum – told Metaverse Post.

Arbitrum Orbit’s Update Enhances Flexibility for End-Users

The incorporation of ERC-20 tokens as gas tokens brings about a more adaptable and streamlined transaction procedure. However, “the ERC20 token does need to meet the technical criteria, such as fee-free transferability, no rebasing, and 18 decimal address, amongst others,” said Dennis.

One prominent example is Xai Gaming, an Orbit chain created in partnership with Arbitrum, which stands ready to capitalize on this feature promptly.

“Arbitrum’s mission is to align with and scale Ethereum and to build tools that allow the ecosystem to thrive.  Whether it is DeFi or another market segment, custom gas tokens add to the technology toolkit that empowers open innovation, interoperation, and choice,” said Dennis.

“It gives more options for teams to build what they want to build,” he added.

The primary objective of this implementation is to diminish user friction, a hurdle in the widespread adoption of web3 gaming. Besides Xai Gaming, other blockchain projects, including Caldera and Celestia, are also expected to capitalize on the custom gas tokens feature.

Arbitrum Orbit, launched in March 2023, continues to attract developers to the Arbitrum ecosystem. The platform allows developers to build Orbit chains on Arbitrum One and Arbitrum Nova, the two Layer 2 networks of Arbitrum. Notably, the custom gas tokens feature is currently exclusive to Orbit AnyTrust chains.

Arbitrum Orbit’s integration of custom gas tokens represents a progressive moment for blockchain technology, resulting in a new era of flexibility and utility for developers. The immediate adoption by projects like Xai Gaming underscores the practical impact of this upgrade, offering smoother transactions and reduced friction for users in web3 gaming and beyond.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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Kumar Gandharv
Kumar Gandharv

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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