Arbitrum proposes Timeboost as new transaction ordering strategy

Arbitrum Foundation recently presented a proposal to feature the Timeboost transaction policy on Arbitrum One and its alternative chain, Nova. Timeboost is an ordering policy that allows users to bid for slightly faster transaction execution. Similarly, the bid winner’s transactions will be included in the express lane for urgent processing. 

Arbitrum DAO to handle bids in auction

Unlike its current First-Come First-Served basis (FCFS) policy,  the proposed transaction ordering policy, if implemented, would auction the bids with the Arbitrum DAO authorizing the rights to winners. In addition to the faster transactions, the bid winner will also take advantage of the backrunning opportunities. 

The FCFS transaction method experiences a short delay of about 200ms, but the express lane used in the new transaction ordering technique avoids this delay. This lane refers to a separate path where a sequencer orders the transactions processed faster than usual ones. However, the Arbitrum DAO will collect Timeboost bids in ETH or Arbitrum tokens.

The proposed policy mainly benefits traders by allowing them to capitalize on the new mechanism. For example, investors can take advantage through an arbitrage technique after securing rights to the express lane for a faster transaction.

This eliminates the need for heavy hardware worth thousands of dollars by allowing participants to win the opportunity through auction. While speaking on the adoption of an advanced transaction execution technique, Abitrum commented:

Unfortunately, relying solely on first-come first-served transaction ordering is not an ideal long-term solution.

Despite­ the recent announce­ment, there has be­en no significant movement in the­ price of Abitrum’s native token, ARB, which is curre­ntly trading at $0.7925. Data from CoinMarketCap shows a 2.69% de­crease in ARB’s value ove­r the past 24 hours, along with a 1.71% decline ove­r the last week. Furthermore, the­ daily trading volume for this token has decre­ased by 14.47% to $137 million, positioning ARB at 33rd rank in terms of marke­t cap, at $2.63 billion.

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