qerranews 
Offchain Labs CEO Steven Goldfeder has a crypto journey that could be straight out of a tech enthusiast’s dream. His introduction to Bitcoin happened in 2013 during a Princeton visit day when Professor Ed Felten—later a co-founder of Arbitrum and a White House science advisor—delivered a brief talk on the cost of destroying Bitcoin.
That night, Goldfeder found himself in a student poker game with a half-BTC buy-in. At the time, that was worth only $10. Looking back, he jokes about not holding onto it.
Now, as the force behind Arbitrum, the leading Ethereum layer-2 scaling solution, he doesn’t have to dwell on missed opportunities. Arbitrum was designed to tackle Ethereum’s scalability challenges, including high fees and slow transaction speeds. But with increasing scrutiny on rollups’ reliance on centralized sequencers, Ethereum Foundation researchers have proposed a shift to “based” and “native” rollups.
Despite initial reports hinting at Arbitrum’s potential adoption of these models, Goldfeder has since reconsidered.
Why Arbitrum Isn’t Becoming a Based Rollup
Based rollups rely on Ethereum’s validators for sequencing, enabling greater interoperability among L2 solutions. Meanwhile, native rollups aim to use Ethereum’s core network for security, replacing fraud-proof mechanisms.
Goldfeder, however, is unconvinced that these models would benefit Arbitrum. He notes that the original 2018 Arbitrum design didn’t include a sequencer, effectively resembling a based rollup. However, the introduction of a sequencer was a crucial step in optimizing the system.
He aligns with Ethereum co-founder Vitalik Buterin’s stance that Ethereum’s strength lies in its diversity. Arbitrum already supports multiple execution models, including Stylus, which allows developers to write smart contracts in Rust, C, and C++.
Reflecting on years of real-world implementation, Goldfeder believes Arbitrum’s existing architecture is the best choice. In a follow-up statement, he confirmed that Arbitrum’s current model is “more efficient, practical, and cost-effective” than based rollups. While he acknowledges the potential benefits of native rollup technology, he remains noncommittal about adopting it.
Arbitrum’s Position in the Layer-2 Race
The Ethereum L2 market is competitive, with projects like Optimism, ZKsync, and StarkNet vying for dominance. While Arbitrum leads, competitors like Coinbase’s Base and ultra-fast rollups like MegaETH are challenging its position.
Goldfeder emphasizes Arbitrum’s full EVM compatibility, low fees, and strong decentralization. As the first general-purpose rollup to reach Stage 1 decentralization, Arbitrum ensures security while reducing reliance on centralized entities.
Looking ahead, true permissionless validation—Stage 2 decentralization—remains a goal. Until then, Goldfeder is standing firm in his belief that Arbitrum’s current design is the right path forward.