- Arbitrum’s new proposal could help improve transaction ordering on the network.
- Despite potential for improvements, overall activity on the network fell.
As a seasoned crypto investor with a keen interest in DeFi and Layer-2 solutions, I’ve been closely following Arbitrum’s [ARB] developments. The recent proposal of introducing “Timeboost” as a transaction ordering policy is an exciting prospect. This mechanism could significantly improve the user experience on the network by enabling users to prioritize their transactions and potentially expedite critical actions like arbitrage opportunities or time-sensitive DeFi trades.
The decentralized finance (DeFi) sector has seen numerous new Layer-2 protocols emerge, but Arbitrum [ARB] has continued to thrive as a top contender due to its enduring popularity.
New developments on the rise
As a researcher studying the Arbitrum blockchain, I’ve come across an intriguing proposal called “Timeboost.” This is an alternative transaction ordering policy that aims to replace the existing first-come, first-served (FCFS) approach.
Timeboost, however, would introduce a bidding system for transaction inclusion and placement.
In this system, users have the freedom to place bids for their transactions. The transactions with the highest bids will be prioritized for processing and given a preferential treatment in the blockchain network.
Instead of the present setup, deals triumphant in the Timeboost bidding would traverse an “priority lane,” unhampered by any delays.
Non-auction transactions will proceed normally, but with a minor delay of around 200 milliseconds.
As a crypto investor, I’ve noticed that this mechanism shares some resemblance to the priority fee system used on the OP Mainnet. In simpler terms, just like on OP Mainnet, I have the option to pay extra fees if I want my transactions processed faster.
Just like Optimism (OP), the funds generated from the Timeboost auction would flow into the Arbitrum Decentralized Autonomous Organization (DAO) treasury, creating a potential substantial income source.
Users have greater control over their interactions with the Arbitrum network by being able to arrange transactions in order of importance.
As a time-conscious analyst, I would recommend utilizing the feature called Timeboost for handling time-sensitive transactions such as arbitrage opportunities or crucial DeFi actions. By doing so, you’ll be able to expedite these transactions, resulting in a more responsive and user-friendly platform that caters to a broader range of users.
State of Arbitrum
At the time of writing, Arbitrum was having trouble attracting and retaining users.
As an analyst, I examined the data from Token Terminal regarding the Arbitrum network’s activity. My findings revealed a significant decrease of approximately 38% in the number of active addresses over the past month according to AMBCrypto’s analysis.
However, the revenue generated by Arbitrum remained high.
Realistic or not, here’s ARB’s market cap in MATIC’s terms
As I analyze the current market situation, ARB is currently priced at $0.7946 based on the latest available data. In the previous 24-hour period, its price experienced a downturn of 3.26%. Over the last month, however, ARB’s trend has been distinctly bearish.
The price showed a downward trend with progressively lower peaks and troughs, while network growth surrounding the token experienced a substantial decline. This suggests waning interest from new investors.
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2024-06-30 11:03