# Panel I The Next Step in Scaling Ethereum with Offchain Labs | Pragma New York 2023

- Channel: [ETHGlobal](https://streameth.org/ethglobal)
- Date: 2023-10-09
- Duration: 54:01
- Topics: Arbitrum, Offchain Labs, Layer 2, Ethereum scaling, optimistic rollups, Nitro, Stylus, Orbit, bold protocol, fraud proofs, decentralized sequencer, smart contracts, Rust, C++, appchains, ZK rollups, TVL, L2BEAT, governance, DAO, Rollup-as-a-Service, Arbitrum One, Arbitrum Nova, onchain development, permissionless validation, dApp development, Pragma NYC, Ethereum infrastructure, blockchain scalability
- Watch: https://streameth.org/watch/yt-5pjF5dcTo2k
- YouTube: https://www.youtube.com/watch?v=5pjF5dcTo2k

## Description

Dive into this engaging fireside chat with Ed Felten, Steven Goldfeder, and Harry Kalodner, the co-founders of Offchain Labs, as they explore the journey of building Arbitrum, Ethereum’s leading Layer 2 scaling solution. Recorded live at Pragma New York 2023, this conversation covers the origin of Arbitrum from its academic roots at Princeton to becoming the largest Layer 2 by total value locked. The founders discuss the architectural evolution from Nitro to Stylus and Orbit, as well as Arbitrum’s unique approach to decentralization, sequencer design, and validator security.

They break down the purpose and functionality of Stylus, which allows developers to build smart contracts in Rust, C, and C++, and highlight how Orbit enables customizable rollup chains secured by Ethereum. The talk also dives into Bold, Offchain Labs’ new permissionless fraud-proof protocol, the significance of distributed sequencing, and the challenges of governance and scaling without compromising decentralization. Whether you're a developer, researcher, or Ethereum enthusiast, this discussion offers valuable insights into the future of Ethereum scalability and how Offchain Labs continues to push innovation on-chain.

00:00 Intro and welcome to Offchain Labs founders
01:16 Arbitrum's origin at Princeton University
03:02 Starting Offchain Labs and early development
05:06 Going remote and building a distributed team
08:00 Arbitrum mainnet launch and unexpected growth
11:25 Fair launch strategy and app ecosystem
13:45 Handling early challenges and security concerns
14:45 The meme project that boosted adoption
16:45 L2 narrative shift and custom rollup ecosystems
18:51 Arbitrum Orbit and appchain customization
21:57 Trustless poker, ephemeral chains, and history
23:57 Quick overview of optimistic rollups
26:16 Sequencer roles, trust assumptions, and ordering
30:27 How Arbitrum ensures transaction finality
32:56 Introducing Bold: Arbitrum’s new fraud proof
36:09 Permissionless validation and decentralization
38:57 DAO governance and self-executing upgrades
40:48 Stylus and expanding beyond EVM
44:13 Why Stylus changes smart contract development
45:47 Orbit enables execution experimentation
47:06 Future of execution layers and Wasm compatibility
48:49 Internal disagreements and decision-making
51:26 ZK rollups, plasma, and crypto endgame debates
53:28 Final thoughts and closing remarks

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🇺🇸 *Pragma New York*
The fifth edition of Pragma took place in New York in September 2023 with a curated series of high-quality talks that sparked thought and discussion. Pragma is a one-stage conference with founders-only on stage, bringing together a small group of curated attendees and speakers to discuss the future of web3 and reflect on the past. Watch the full Pragma New York 2023 playlist here: https://youtube.com/playlist?list=PLXzKMXK2aHh6xsRbmx2niHEDyOyt1mddu&si=6Ic960b2hQyz9RGw

ETHGlobal's Pragma series takes place in cities around the world, and is designed to be a different kind of event. Ever since we first introduced our new event series, Pragma, in Tokyo in the spring of 2023, we have been fostering a curated, global community of individuals who deeply care about web3. 

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