DeFi applications have lately been empowered by optimistic rollups because of their market readiness. Any dapp can quickly launch its custom rollup chains and enjoy more efficient transaction handling, cross-chain messaging, and much more. However, one drawback of the optimistic rollup is the challenger period, which deletes emerging use cases that require instant withdrawal to build on top of it. 

Though chains like Optimism have been dramatically progressing towards the same to provide near-instantaneous settlements working with Succint or Risc Zero, they have their own challenges because even a humble set-up would still be costly in any capacity. 

But Arbitrum Orbit transactions speed is going to challenge the same to make Optimistic Rollups battle-ready for complex use cases requiring instant finality without breaking the bank on hardware requirements or other challenges at all. But why do we need that in the first place? 

To understand why we need an upgraded Arbitrum Orbit Optimistic Rollup with fast withdrawal, we have to first understand the problem with the existing Optimistic Rollup withdrawal period. In the existing setup, we have a 6.4-day waiting period to verify the veracity of the transaction. But doing the same would delete a lot of use-cases from the Optimistic rollups execution environment. 

For example, use cases like DeFi, gaming, and Depin require instant finality. However, the current optimistic rollup state has been such that any withdrawal request must have to wait for a specific period of 6.4 days. During this time period, all the validators must come to a consensus, or else a malicious actor could print money out of thin air in no time. 

Though we have some advanced narratives to help fix this problem proposed by Nick Dadson of Fuel Labs in the form of a check-in problem where a censorship scheme would allow all the validators to check the transaction and provide an instantaneous upgrade, the process could all fall back if any validator would flag a block due to any reason, maybe DoS or inactivity. During such a period, the  6.4 days/ 7 days element will return. Hence, squaring back on where we started in the first place. What’s the solution, then?  

Let’s look at the Fast Withdrawal of Arbitrum Orbit

Fast Withdrawal is a process that challenges the erstwhile slowness of the Optimistic rollups, where it was essential to go through an average 7-day challenger period. However, under the fast withdrawal, the challenger period has now been reduced from 10080 minutes/ 7 Days to 15 minutes for AnyTrust chains. This makes the Arbitrum Orbit transaction speed   672x faster and supports many emerging use cases requiring high transaction speed and faster settlements.  

In the fast withdrawal, the Arbitrium Chain will use AnyTrust chain’s Trust Assumptions to quickly process transactions. So, since the AnyTrust chains, which are DAC-governed Arbitrum chains,  operate atop a specific optimal set-up to execute their operations, Arbitrum Orbit’s fast withdrawal integrates better with them. 

Arbitrum Orbit is using the AnyTrust chain’s mechanics to achieve the 672X faster settlements because AnyTrust has an already designated DAC to help challenge the erstwhile drawbacks of the optimistic rollup chains. For example, former Optimistic Rollups chains were slow because; 

• They had to get consensus from all the validators joining the network

• In case of flagged transactions, the entire transaction chain was put under surveillance and verification. 

• Nodes could join the network at any probable time during the checking window and verify all the flagged transactions. 

These steps created a lot of latency bottlenecks and a jolt on Arbitrium’s wider adoption for use cases requiring instant finality. 

But, Arbitrum Orbit has challenged this setup through a DAC or a Data Availability Committee that would provide data needed for verifying the transaction within a specific time period and subsequently change thereafter for 672x  speed. Due to this, the transaction confirmation already gets; 

• An already operational DAC is set up to verify and validate transactions.

• There is no provision for new nodes joining the network to slow down the process. 

• A shorter time frame of 15 minutes is needed to validate the transactions by breaking the transactions into shards, and a single rollup operator with a single validator is required to run the DAC nodes and provide instant finality.   

Thereby making Arbitrum Orbit transactions speed blazing fast. 

We have already seen that OP Stack has already pitched for a ZK-Fied Op Stack to quicken the pace of withdrawal, thereby supporting emerging use cases like gaming, RWAs, and more to emerge on top of it. However, in pursuit of this, Optimism’s OP Stack uses a succinct processor or SP1. Though the trade-off of SP1 is that any proofs coming from LLVM/ Rust compilers can be easily processed and validated for instant settlements, it is not questionable that for such faster finality and scalability needed in gaming, RWAs and DePin,  even a bare minimum hardware requirement might create a scalability barrier if network activity suddenly spikes. 

To put that simply, requiring keccak-256 for proof validation, Optimism’s Op Stack demands a minimum of 64 ARM-based CPUs and 512GB of RAM. But when you are comparing the same with what a typical Arbitrum Nitro,  it requires 672x faster withdrawal RAM: 8-16 GB CPU: 2-4 core CPU (For AWS: t3 xLarge), Storage: Minimum 1.2TB SSD. 

So, it completely reinstates new use cases to build on top of it, like RWAs, depin, and gaming through canonical bridging for faster finality because fast withdrawals would enhance cross-chain communication by allowing cross-chain applications to read the finalized state up to the fast confirmation frequency. 

Thereby challenging the erstwhile status quo of technology stacks that could promise the same and were better placed in comparison to Arbitrium to build the next-gen ecosystem. 

Moreover, with fast withdrawal, many chains in the Arbitrum Orbit ecosystem that demand a speedy user experience can adopt the same and help new use cases around gaming, DeFi, and social to build on top. 

The Arbitrum Orbit’s EVM compatibility will be another cherry on top, allowing faster interaction with other EVM chains at a fraction of the cost of amplifying liquidity and cross-chain operations. Due to this, not only can you increase the Arbitrum Orbit transactions speed at which an asset moves cross-chain at  672x, but you don’t have to get troubled by excessive hardware requirements and enjoy interoperability like never before.

When entrepreneurs/founders wish to deploy new use cases on top of blockchains, they are challenged by the stack choices. They have to look for intensive hardware investments if they demand faster finality and high throughput. But  Arbitrum Orbit, transaction speed and instant settlements have completely eliminated this barrier that the founders/entrepreneurs in the Web 3 space are facing. 

With Arbitrum Orbit’s transaction speed getting  supercharged by fast withdrawals, most of the use cases that were difficult to build on top of Arbitrum Orbit for founders/entrepreneurs  could now be made possible, such as DePin and RWAs. Moreover, entrepreneurs/founders can build their Optimistic rollup chain with AnyTrust mode for gaming or any other use-cases where they need instant settlement/withdrawals without mind meddling with Zeeve RaaS. 

Zeeve RaaS will simplify the entire process of setting up your Arbitrum Orbit’s chain with high transaction speed so that not only can you cut down on the cost but also enjoy other meaningful value additions by accessing the 40+ 3rd party rollup integration that Zeeve promises. Moreover, if you want to set up your DeVNet and Mainnet, Zeeve offers a one-click Sandbox to launch your application in no time. For more information on how you can launch your Optimistic rollup chain using Arbitrum’s AnyTrust, you can schedule a call with our experts. We are 24/7 ready to listen to your queries and provide an amicable solution for the same.