Introduction

The primary objective of any Layer-2 network is to significantly enhance decentralized network activity by enabling scalability for Layer-1 blockchains such as Ethereum and Bitcoin. While current Layer-2 solutions have lowered the economic barriers to transact on these blockchains, they face two major challenges: i) They inherit Ethereum's staking paradigm, resulting in capital centralization and reduced liquidity. This creates a fragmented relationship with network participants, including end-users, infrastructure providers, and DApp developers. ii) the first-generation VMs used in their networks limit their transactional throughput and reduce their scalability. Arithmic addresses these challenges with a two-pronged approach: i) Introducing a novel native restaking paradigm backed by network activity, aligning the participation of end-users, infrastructure providers, and DApp developers. ii) Building a next-generation VM based entirely on lookups, achieving significantly higher throughput compared to existing systems. In summary, Arithmic enhances decentralized economic participation by unlocking liquidity through its Gen 2.0 VM and network-powered restaking. We've got a surprise! Join our private Discord server to be a part of the conversation and connect with community members! :)