Arbitrum activates Elara upgrade with optional compliance tools for custom chains
Arbitrum rolls out Elara upgrade for custom blockchains
Arbitrum, a network that helps Ethereum process transactions faster, has activated its latest upgrade called ArbOS 61 Elara. This upgrade introduces optional tools for custom blockchains built on Arbitrum, including compliance filters and priority fees. These features are turned off by default on Arbitrum's main networks, Arbitrum One and Nova.
The upgrade went live on August 20 after being approved through Arbitrum's governance process. Governance in crypto refers to community voting that decides how a network evolves.
What the upgrade includes
- Optional compliance filters that let chain owners block transactions involving certain addresses
- Support for priority fees, which are small tips users can pay to have their transactions processed faster
- A new way for custom chains to handle data storage
- Increased capacity for Stylus, a tool that lets developers write smart contracts in more programming languages
How compliance filters work
The compliance tools are designed for owners of custom Arbitrum chains, not for regular users of Arbitrum One. Chain owners can choose to work with compliance providers like TRM Labs or Chainalysis to create lists of restricted addresses. They can then set rules to block transfers, contract calls, or other interactions involving those addresses.
The system works at two levels: the sequencer (which orders transactions) can reject violating transactions before they enter a block, and a backup system can block transactions that try to bypass the sequencer. Restricted addresses are stored securely as coded hashes rather than plain text.
Priority fees and base fee changes
Elara also enables custom chains to collect priority fees, but this feature is turned off by default. Only the chain owner can activate it. Even when activated, collecting priority fees doesn't automatically change how transactions are ordered - the chain would need to update its sequencer logic separately.
For Arbitrum One, Elara introduces a new contract called BaseFeeManager. This lets Offchain Labs, the company behind Arbitrum, adjust the minimum base fee within a range approved by the community. The base fee is the minimum amount users must pay for their transactions to be processed. This delegation lasts for two years and can be revoked by the community at any time.
What is confirmed
- Arbitrum activated ArbOS 61 Elara on August 20
- The upgrade includes optional compliance filters and priority fee support for custom chains
- These features are disabled by default on Arbitrum One and Nova
- Chain owners control whether and how to use the compliance tools
- The base fee adjustment tool for Arbitrum One has been introduced but doesn't raise fees by itself
- Stylus contract size limit has increased from 24 KB to 96 KB
What remains unclear
- When or if Arbitrum One will activate priority fee collection, as this requires a separate governance vote
- Which custom chains will choose to implement the compliance filters or priority fees
- How the community will respond to the base fee adjustment capability on Arbitrum One
Why this matters for Arbitrum users and developers
For regular users of Arbitrum One and Nova, this upgrade doesn't immediately change how they interact with the network. The compliance filters and priority fees are tools available to owners of custom Arbitrum chains, which are separate blockchains built using Arbitrum's technology.
Developers building on Arbitrum now have more options. They can create custom chains with built-in compliance tools if needed, and they have more flexibility in how they handle transaction fees. The increased Stylus capacity also allows for more complex smart contracts written in languages beyond Solidity.
The base fee adjustment tool for Arbitrum One gives the network more flexibility to respond to changing conditions, while still keeping control in the hands of the community through governance.