Are you aware of Arbitrum?
Speeding up Ethereum – Here is everything you need to know:
What is Arbitrum?
Arbitrum is a Layer 2 network protocol that seeks to solve the congestion on the Ethereum network by improving how smart contracts are validated.
What goals does Arbitrum have?
- Increasing transaction speed
- Improving scalability
- Adding privacy features
Who created Arbitrum and why?
Arbitrum is developed by Offchain Labs, New York based development company with a deep passion for blockchain and cryptocurrencies.
It is solving weaknesses in Ethereum Smart Contract Technology – Low efficiency and high execution costs for users.
How does Arbitrum work?
Arbitrum processes Ethereum transactions through the Optimistic Rollup protocol. Ethereum Smart Contracts scale using the Layer 2 built on it. The layer handles transactions and then reports back to Ethereum – Increasing speed.
More on Optimistic Rollups
An optimistic rollup executes transactions off-chain. Since Ethereum is already cluttered, Side chains settle rollups. Arbitrum gathers transactions in batches, commits them, and finally pushes data back to Ethereum’s mainnet – dodging hacks.
The Arbitrum Bridge
The Arbitrum One bridge allows users to send ERC-20 Tokens, including ETH. You need to connect your Ethereum wallet to the bridge to use it. You can use MetaMask or any other supported wallet.
Aave & Curve are among the top DeFi apps leveraging Arbitrum.
Is Arbitrum a token?
As of October 2022, Arbitrum has no native token. Arbitrum is a blockchain network serving to scale applications built on Ethereum while reducing transaction costs. However, there is speculation regarding a potential ARBI cryptocurrency.
The advantages of using Arbitrum
Here are the unique features of Arbitrum:
- Low transaction costs
- High EMV Compatibility – Supports many developers' languages
- Powerful developer tools – Comprehensive developer documentation
- A better ecosystem – Open to partnerships
Subscribe to receive our weekly newsletter and in-house research content!