Introduction to Rise on Arbitrum
Blockchain technology has revolutionised industries around the world, offering new possibilities for efficiency, security, and transparency. At Rise, we decided to launch our payroll smarts contracts and on-chain professional identities, the Rise ID, on Arbitrum One, the largest Ethereum Layer 2 network by Total Value Locked (TVL).
Our reasons for Choosing Arbitrum One
When Rise evaluated different blockchain platforms for their payroll system, several key factors were considered. Scalability, security, user experience, and cost-effectiveness were at the top of the list. After a thorough analysis, Arbitrum One emerged as the ideal choice for Rise due to its outstanding performance in these areas.
As of February 2024, the layer 2 blockchain boasts a TVL of nearly $3 Billion coming in 4th within the top 10 blockchains overall. This is important to us as it indicates high levels of liquidity and therefore compatibility with our platform. Arbitrum is also the 3rd most adopted chain of the top 10 with 538 live protocols, only bested by juggernauts Ethereum and the Binance Smart Chain. The chain is largely occupied by DeFi and derivative based projects including:
- GMX - An on-chain derivatives platform that allows users to take leveraged trades
- AAVE - One of the original and largest crypto lending protocols
- Uniswap - The first and largest decentralised exchanged
- Radiant Capital - An omnichain money market where users can deposit any major asset on any major chain and borrow various supported assets across multiple chains
Arbitrum One addresses one of the biggest challenges faced by Ethereum - scalability. With its innovative rollup technology, Arbitrum achieves high transaction throughput by batching multiple transactions together and submitting them as a single transaction on the Ethereum mainnet. This significantly improves scalability and ensures that Rise's platform can handle a high volume of payroll transactions as well as the creation and management of our Rise IDs (verified on-chain professional identities for both companies and contractors) seamlessly.
Furthermore, security is paramount in the blockchain space, especially when dealing with sensitive financial data. Arbitrum incorporates robust security measures, leveraging Ethereum's battle-tested security infrastructure. By building on top of Ethereum, Arbitrum benefits from the network's established security protocols, reducing the risks associated with potential attacks or vulnerabilities.
User experience is a critical factor that can make or break a blockchain platform. Rise understands that businesses require simple and intuitive interfaces to navigate complex payroll and compliance processes. Arbitrum's EVM+ equivalence allows Rise to leverage existing Ethereum developer tools and infrastructure, making it easy to build and deploy Rise’s complex smart-contract system on Arbitrum.
Cost-effectiveness was also a key consideration for Rise. Traditional blockchain transactions on Ethereum can be expensive due to high gas fees. However, Arbitrum significantly reduces transaction costs by aggregating multiple transactions into a single rollup transaction. Because these transactions are inexpensive, Rise is able to pay for the transactions so our users aren’t burdened by gas considerations. Each transaction leverages EIP-712 Signed Typed Data, so our users only need to approve transactions.
Arbitrum vs Other Blockchains
Although several blockchain platforms are available, Arbitrum stood out as the most compelling option for Rise's needs. Let's compare Arbitrum with other popular options in the market.
- Ethereum: Ethereum is the most well-known and widely adopted blockchain platform, it’s the security layer for all true L2s today. Transaction costs will remain high due to limited block space. With the upcoming EIP-4844 upgrade, Ethereum will play a critical role in reducing transaction costs on Arbitrum and other L2s that leverage blog space.
- Polygon: Polygon (formerly Matic) is another popular Layer 2 solution. While it offers fast transactions and low fees, it has a different security model compared to Ethereum L2s. Rise chose Arbitrum for its improved security as it is a true L2 that writes to Ethereum.
- Binance Smart Chain (BSC): BSC offers high throughput and low transaction fees, making it an attractive option for some businesses. However, BSC operates on a different consensus mechanism, and its centralization concerns led Rise to select a solution aligned with their commitment to decentralisation and security.
- Solana: Especially recently, Solana has seen incredible growth and transactions per second. While Solana’s TPS is interesting, it’s hard to see how it’ll horizontally scale, like seen by Ethereum L2’s. To add, it will be a challenge to be as globally distributed and resilient like Ethereum and Ethereum L2’s like Arbitrum.
- Optimism: Optimism is commonly placed side by side with Arbitrum in terms of the technical approaches they take to fix issues of scaling transaction throughput but again, Arbitrum comes out on top in terms of ecosystem health and overall security. Arbitrum has Fraud proofs and with the recent release of Arbitrum WatchTower, each Nitro node is verifying attestations for validity.
Technical Benefits of Arbitrum for Web3-enabled Payroll
Arbitrum offers several technical benefits that align perfectly with Rise's requirements.
- Reduced Transaction Costs: By aggregating multiple transactions into a single rollup transaction, Arbitrum significantly reduces transaction costs. This cost-saving benefit lowers the barrier of entry for businesses, allowing them to leverage the advantages of blockchain-enabled payroll systems without incurring exorbitant fees.
- Faster Transactions: With Arbitrum's rollup technology, Nitro, transactions are processed off-chain and then batched into a single transaction on the Ethereum mainnet. This results in faster confirmation times, enabling near-instantaneous payroll transactions for Rise's clients.
- Ethereum Compatibility: As an Ethereum Layer 2 solution, Arbitrum maintains compatibility with the vast Ethereum ecosystem. Rise can leverage existing Ethereum infrastructure, smart contracts, and developer tools seamlessly. This compatibility ensures a smooth integration process and facilitates a familiar experience for both developers and users.
Rise's Web3-enabled Payroll and Workforce Management Solutions on Arbitrum
Launching on Arbitrum aligns perfectly with Rise's business strategy and goals. By leveraging the benefits of Arbitrum, Rise aims to provide efficient, secure, and cost-effective payroll services to businesses around the world. One of the major ways we achieve this is through implementation of our RiseID. RiseID’s leverage the ERC-725 token standard so that all of our users can mint their self sovereign profession IDs on chain. These then allow users to carry out tasks such as:
- Plug into different decentralised applications
- Maintain a record of work history and certifications all on-chain
- Start pay schedules
- Initiate payments
- Withdraw funds
Here, Arbitrum being able to harness the high levels of security Ethereum is known for is paramount. By design, RiseID’s contain sensitive information about the individuals they represent. To compound this, our ID’s can be connected to a variety of different web3 wallets including Metamask and Coinbase Wallet. This means that in order to carry out several functions, signing transactions must be carried out for authentication purposes and Arbitrum is compatible with every major wallet available.
Improved scalability is a primary objective for Rise. By choosing Arbitrum, we ensure that our platform can handle a growing user base and an increasing volume of payroll transactions. Scalability is crucial for meeting the demands of businesses of all sizes without compromising on performance or incurring exorbitant costs.
Enhancing user experience is another important aspect of Rise's strategy. By integrating with Arbitrum's Ethereum-compatible infrastructure, Rise can offer a seamless and intuitive payroll platform to their clients. This compatibility allows businesses to leverage blockchain technology without the need for extensive training or adjustments to their existing processes.
Furthermore, integrating with Arbitrum enhances Rise's reputation within the blockchain ecosystem. Arbitrum is gaining significant traction as an Ethereum Layer 2 solution, attracting the attention of both developers and businesses. By choosing Arbitrum, Rise demonstrates their commitment to collaborating with innovative and trusted blockchain platforms, positioning themselves as leaders in the payroll space.
The Future of Rise on Arbitrum
The decision to launch on Arbitrum lays a solid foundation for Rise's future growth and success. By leveraging Arbitrum's scalability, security, and compatibility, Rise can continue to innovate and expand our crypto payroll services globally.
As the blockchain space evolves, we can expect more businesses to realise the potential of Layer 2 solutions like Arbitrum. With its technical advancements and seamless integration with Ethereum, Arbitrum has positioned itself as a frontrunner in the race for scalable and efficient blockchain platforms.
Rise's future on Arbitrum holds exciting possibilities. As adoption grows, Rise can attract a larger user base, enabling businesses worldwide to benefit from our blockchain-enabled payroll services. Moreover, Rise's presence on Arbitrum reinforces the network's credibility, driving further adoption and interest in the platform.
In conclusion, the decision to launch on Arbitrum was a strategic and well-thought-out move by our engineering team. By carefully evaluating the technical benefits and aligning with our business strategy, Rise ensures that they provide an efficient, secure, and cost-effective payroll solution to our clients. With Arbitrum as our chosen blockchain platform, Rise can lead the way in revolutionising payroll systems, fostering innovation, and embracing the potential of blockchain technology.
