Ethereum Consensus Client Prysmatic Labs Is Purchased By Arbitrum Developer

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.”

L1 Team Joins the Best L2 Team

The Prysm client, which powers Ethereum’s proof-of-stake consensus and is a favorite 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.” He continued by saying:

“We have been inspired by Arbitrum’s organic growth and the versatility of the Offchain team to adapt to technology that is both practical and innovative. Both companies truly love the work we produce, and are extra motivated to build a unified team stronger than the sum of its parts.”

Despite the Prysmatic Labs team officially joining Offchain Labs, development initiatives such as leading the effort to bring EIP-4844 data-sharding to production will continue uninterrupted. The two teams also plan on collaborating on several other programs to accelerate both 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.

Arbitrum development – Ethereum

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%.

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