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Offchain Labs, a company that creates scaling solutions for Ethereum smart contracts, recently announced that it is buying Prysmatic Labs, one of the key engineering groups responsible for the Merge and Prysm.
The release claims that Prysmatic Labs joined Offchain Lab due to the firms’ shared commitment to expanding Ethereum and alignment on basic values. By facilitating improved communication for the development on both layer 1 and layer 2, the action is in line with the team’s goal of creating a “sustainable future for Ethereum.”
The top L2 team welcomes the L1 team
The Prysm client, which powers Ethereum’s proof-of-stake consensus and is a favourite among node runners, will continue to be maintained by the Prysmatic team after the acquisition.
Raul Jordan, a co-founder of Prysmatic Labs, said the merger with Offchain Labs “makes perfect sense” and that it will aid in the creation of a “united team greater than the sum of its parts.”
Even now, the Prysmatic Labs team has formally joined Offchain Labs; development projects like spearheading the charge to implement EIP-4844 data-sharding will proceed as planned. The two teams also intend to work together on a number of other initiatives to quicken L1 and L2 development.
The initial acquisition discussions began in 2021 but have recently acquired momentum. The Offchain Labs staff would increase by 11 Prysmatic Labs employees, bringing the total to about 60.
The move comes in response to remarks made by Vitalik Buterin, the creator of Ethereum, emphasizing the need for increased network scalability.
Aggregate Development
The acquisition represents a significant advancement for Arbitrum, a roll-up solution built on top of the Ethereum network. Offchain’s layer 2 scaling solution has kept its position on the winning side despite the bear market and the stagnant activity on the post-Merge Ethereum. As a result, from August to September, there were almost 55% more transactions on Arbitrum.
Over $950 billion is reportedly passing through DeFiLlama’s protocols, with a market share of 51.41%.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
