Offchain Labs, an Enterprise blockchain startup, identified the two restricting variables to significant business blockchain adoption which has the concerns about scalability and privacy. In this regard, Offchain has embarked on helping it to make progressively adaptable, blockchain-based smart contracts, by expanding the privacy by moving part of the procedure off of the open blockchain. To achieve that, Offchain secured a seed round of financing driven by Pantera Capital to develop their team to build Arbitrum, a scaling solution which is blockchain-agnostic.
Offchain labs, was established by Edward Felten, a former deputy U.S technology officer, and current computer science educator at Princeton University, and along with two Ph.D. students, Steven Goldfeder and Harry Kalodner, brought 3.7 million dollars up in a seed round driven by Pantera Capital, with support from Compound VC, BlockNation and others.
Offchain Labs anticipates that this product should find itself in the enterprise market, particularly in public-facing applications that people use daily. Currently, the product is still in its alpha stage. In June, the startup reported the alpha version of its product, called “Arbitrum,” which, as indicated by Felten, is “an add-on for almost any blockchain-based application to make it better.” Arbitrum is an open-source cryptocurrency platform that is built by Offchain Labs. Moreover, Arbitrum works with Ethereum, the second most valuable cryptocurrency.
In a release, Felten explained the product –
We have invented a protocol that sits on top of any blockchain, with the ability to execute code and transactions off-chain through either sidechains or state channels. With increased privacy and scalability, as well as much lower costs to run a contract, Arbitrum adds immense value to developers and enterprises. We believe it can create a new wave of quality, blockchain-based applications, and services.
Furthermore, the co-founders likewise recognized the business and technical problems that they would need to comprehend to have a feasible organization, and officially licensed Technology in Princeton. The blockchain add-on programming has few downsides of existing applications that work with blockchain, Felten clarified.