Arbitrum Orbit has just brought in a new feature – now, it supports custom gas tokens. This means that Orbit blockchains can use certain ERC-20 tokens for covering transaction fees.
In a recent update, Arbitrum Orbit has added a cool feature – now, it supports custom gas tokens. This means that on Orbit blockchains, instead of just using Ether as the gas token for transaction fees, developers can choose certain ERC-20 tokens for this purpose. It gives more flexibility to developers in managing transaction costs on their networks.
Gas tokens are like digital money used to pay for doing things on blockchain networks, especially on Ethereum. Recently, Arbitrum Orbit made it possible for teams to use their custom gas tokens. This means that when building their applications on L2, they now have more freedom to create their unique digital money and special ways their tokens can be used, depending on what they need. David Dennis, who works on product marketing at Offchain Labs (the main creator of Arbitrum), talked about how this new feature gives more options to teams building on Arbitrum Orbit.
Custom gas tokens for Arbitrum Orbit chains are now supported!💙🪐
Orbit chains can now use any ERC20 token for their transaction fees, allowing projects to build vibrant native economies.
Since the initial launch of Arbitrum Orbit, custom gas tokens have been the most… pic.twitter.com/pxWh582q4M
— Arbitrum (💙,🧡) (@arbitrum) January 4, 2024
Arbitrum Orbit Unleashes ERC-20 Gas Tokens for Enhanced Transactions
The recent inclusion of ERC-20 tokens as gas tokens marks a significant advancement in making transactions more adaptable and streamlined. According to David Dennis, the ERC-20 token needs to meet specific technical criteria, such as fee-free transferability, no rebasing, and having an 18-decimal address.
One noteworthy example seizing this opportunity is Xai Gaming, an Orbit chain developed in collaboration with Arbitrum. This move aligns with Arbitrum’s mission to scale Ethereum, empower open innovation, and offer more choices for diverse market segments, as mentioned by Dennis. The integration of custom gas tokens aims to reduce user friction, particularly in the web3 gaming space, with projects like Caldera and Celestia also expected to leverage this feature.
Launched in March 2023, Arbitrum Orbit continues to draw developers into the Arbitrum ecosystem. The platform enables developers to build Orbit chains on Arbitrum One and Arbitrum Nova, the two Layer 2 networks of Arbitrum. Notably, the custom gas tokens feature is currently exclusive to Orbit AnyTrust chains.
Arbitrum Orbit’s introduction of custom gas tokens represents a noteworthy development in blockchain technology, ushering in a new era of flexibility and utility for developers. The swift adoption by projects like Xai Gaming highlights the tangible impact of this upgrade, promising smoother transactions and reduced friction for users in web3 gaming and beyond.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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