Arbitrum News: New Ethereum L2 Chain Converge to Tokenize Assets

Ethereum Layer-2 network Arbitrum has started a new blockchain called Converge. This new chain will focus on turning real-world things like property, bonds, or stocks into digital tokens. These tokens can then be used or traded on the blockchain like other cryptocurrencies. This Arbitrum News is getting the attention of the industry.

What Is Converge?

Converge is a project made by Ethena Labs and Securitize . It is built to help bring more real-world value into crypto. The chain uses Celestia’s special technology, which helps process data faster and more smoothly.

One cool thing about this project is that it will use stablecoins —called USDe and USDtb —to pay for gas fees. That means the cost to use the network will stay steady and not jump around like other crypto tokens often do.

How It Works

• Converge will start with block times of just 100 milliseconds , and they plan to make it even faster—down to 50 milliseconds .
  

• The network will be protected by a token called sENA , which people can stake to help secure it.
  

• It will also allow developers to write smart contracts using different languages like Solidity, Rust, C, and C++ .

Apps like Ethereal DEX are already planning to launch on Converge. More apps are expected soon. Plus, $5 billion from Ethena and $2 billion from Securitize will be moved onto the project to help the chain start strong.

How Does This Affect Crypto?

Most experts think that the project has the potential to revolutionize how crypto and DeFi are utilized. With the ability to bring real-world value to the blockchain, crypto won't be solely for buying and selling—it may be utilized for loans, savings, and so much more.

This might introduce billions of dollars' worth of new value into crypto, making it more trustworthy and usable for more individuals and businesses.

Arbitrum vs Other Networks

While Arbitrum is doing something big, other Ethereum Layer-2 networks are also growing. The Base network had over 155 transactions per second earlier this year. Arbitrum’s usage had dropped a bit, but with Converge, that might change.

With that, ARB token of the platform was currently listed on Robinhood it made, the price to increase by 12%. The Token had an increase in price of 0.95% in the last 24 hours, currently trading at $0.2864. It depicts that people are inclined about what is coming next. Although the price of Ethereum went down in the last 24 hours by 1.28% currently trading at $1580.77 as per the date from coinmarketcap.

What’s Next?

Converge is just a move of the bigger strategy. Ethereum platform is also ready for the Pectra upgrade , it is probable in the first week of May. Currently, all are concerned about the new step of Arbitrum to include real-world assets in the blockchain.

If Converge operates well, it might help the industry grow beyond the trading of coins. It can be used in routine life and even transform the way the public uses money globally.