The parent company of Arbitrum, Offchain Labs, announced the acquisition of Prysmatic Labs in a blog post.
- The purchase is a significant accomplishment for Offchain Labs as it seeks to broaden the reach of Arbitrum, its optimistic rollup network that enables users to transact on Ethereum with reduced rates and faster transaction times. The purchase of one of Ethereum’s top Layer 1 teams by Offchain indicates the growing importance of Layer 2 scaling platforms in the Ethereum ecosystem.
- After the completion of the acquisition, the developers will keep working on the “neutral and open-source” client and other Ethereum (ETH) ecosystem projects.
- According to Raul Jordan, a co-founder of Prysmatic Labs, the merger was a perfect fit since both teams use the programming language Go to create their software and are committed to delivering products that will make Ethereum successful.
- Crunchbase reports that since its creation in 2018, Offchain Labs has generated over $120 million from investors. The addition of 11 additional Prysmatic Labs colleagues pushes its total staff beyond 60. Prysmatic Labs and Offchain Labs did not release the financial details of their agreement to the public.
See Related: The Misconceptions With The Ethereum Merge
What Is Prysmatic Labs?
- Prysmatic Labs created the proof-of-stake consensus mechanism that has powered and authenticated Ethereum. It is implemented by node validators all across the globe using Prysm, a consensus client program.
- The Prysmatic Labs team is made up of elite developers that are well-versed in blockchain technology and strongly support Ethereum’s key principles.
- The core staff of Offchain Labs will now include Prysmatic Labs’ programmers. While developing Arbitrium, they will continue to support Prysm and act as a neutral consensus client on Ethereum. The group will also contribute significantly to developing Ethereum’s EIP-4844 data-sharding initiative.
See Related: Bitcoin, Ethereum, Ripple Are About To Experience A Bumpy Ride Ahead, Crypto Analyst Tony Montpeirous
