Arbitrum Orbit’s layer 3 chain can now pay transaction fees using selected ERC-20 tokens

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Arbitrum Orbit allows developers to build a layer 3 blockchain on top of the Ethereum layer 2 Arbitrum network and adds support for custom gas tokens or tokens used to pay transaction fees on the blockchain.

On Thursday, Arbitrum noted that the development now allows the Orbit blockchain to use select ERC-20 tokens (meeting technical standard) process gas or transaction fees on its network. Until recently, the Orbit chain could only use ETH as its gas token.

The option to use ERC-20 tokens for Gas payments will allow Orbit Chain to create utility for its own token and grow the ecosystem. David Dennis, lead developer of Arbitrum and director of product marketing at Offchain Labs, said:

“For example, a game wants to have an in-game economic model but still wants to be built on Arbitrum and Ethereum.”

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Xai Gaming will take advantage of the custom Gas Token feature immediately. Xai first partnered with Arbitrum in June last year to develop the Orbit chain and host games from web3 game publisher Ex Populus. Team Ex Populus has experience working at gaming companies such as Pixar, Ubisoft and Activision Blizzard.

Soban Saqib (Soby), co-founder of Ex Populus, said:

“By having customized Gas tokens, the Xai protocol will use Gas subsidy contracts to pay Gas fees on behalf of users. This greatly reduces end-user operations. We firmly believe that the reason why Web3 games have not succeeded is because traditional users have encountered obstacles.”

Additionally, we incentivize nodes to use XAI tokens to protect network security. This allows us to solve the “validator’s dilemma” that arises in distributed systems. All of the above is achieved through Orbit’s custom Gas token. “

Arbitrum said other blockchain projects that will immediately take advantage of custom gas token capabilities include Caldera and Celestia.

Orbital and Ecosystem Growth

Any track is fine Debut March 2023 to attract more developers to join the Arbitrum ecosystem. Chain Orbit can be built on Arbitrum One and Arbitrum Nova (Arbitrum’s two layer 2 networks). As for the custom gas token function, it is only supported on the Orbit AnyTrust chain. Arbitrum provides rollup and AnyTrust technologies to build Orbit chains. Dennis said:

“Arbitrum Nova is a type of AnyTrust chain, but not all chains using AnyTrust technology are Nova.”

according to data Arbitrum One is the largest layer 2 Ethereum network under DeFiLlama, with a total value currently locked in smart contracts of approximately $2.5 billion. Arbitrum’s native ARB token also hit an all-time high of $2.04 yesterday and is currently trading around $1.89. Arbitrum recently issued approximately $40 million worth of ARB tokens to 29 projects to further develop its ecosystem.