Offchain Labs, developer of popular Ethereum layer 2 scaling solution Arbitrum has signed a new deal to acquire Prysmatic Labs, one of the core development teams behind the Ethereum (ETH) Merge.
Plunging cryptocurrency prices have not deterred companies from investing or acquiring in the crypto space. From tech giants, Microsoft and Meta collaborating to boost metaverse to entertainment giant, Disney, posting a job advertisement to manage its Web3 unit, conglomerates seem to have a gala time in cryptoverse. Recently, another crypto start-up MinePlex, secured a whopping $100 million funding from digital asset investment firm GEM Digital Limited.
The Acquisition Will Help Scale the Ethereum Ecosystem
It doesn't get more synergistic than this 🚀🚀🚀
I'm overjoyed to announce that we'll be joining forces with @prylabs, one of the most accomplished technical teams in the space. https://t.co/6rT0x7Y3xr
— Steven Goldfeder (💙,🧡,🖊️,🦀) (@sgoldfed) October 12, 2022
On October 12, Offchain Labs announced the acquisition of Prysmatic Labs in an effort to scale the Ethereum ecosystem. Being one the key teams responsible for innovating the Ethereum mainnet, Prysmatic Labs, will signify a major development for Arbitrum. The move will further boost to upgrade and innovate the Ethereum network. Offchain Labs said it chose Prysmatic Labs “for many reasons”, but mainly because of the two companies’ alignment in their core beliefs.
In addition, the acquisition will also help in Offchain Labs’ mission to develop a sustainable Web 3 ecosystem. It will assit Arbutrum to gain advantage in supporting Ethereum rollups as after the recent Ethereum Merge, Prysmatic Labs became the most popular software used to run Ethereum’s consensus. However, the financial terms of the deal have not yet been disclosed.
Both Companies Will Benefit From Each Other
Steven Goldfeder, CEO of Offchain Labs, noted the move will benefit Offchain Labs since Prysmatic Labs team is comprised of top-tier developers with a deep understanding of blockchain technology and a strong alignment with Ethereum’s core values. He said,
“Prysmatic Labs possesses an incredibly talented team of engineers, and their dedication to the Ethereum community shows via their best-in-class product that is used broadly in the Ethereum ecosystem. We are looking forward to the integration of the Prysmatic Labs team as we work together to scale Ethereum.”
Prysmatic Labs co-founder, Raul Jordan said the move will strengthen in developing a solid Ethereum network and add more power to Ethereum’s proof-of-stake consensus. He added,
“Merging with Offchain Labs made perfect sense to us as an Ethereum team because we develop software extensively in Go, are fully incentive-aligned with the success of Ethereum, and are focused on shipping quality software for others to use.”
