What is Arbitrum?

Arbitrum is a Layer-2 scaling solution for Ethereum, designed to improve the speed, scalability, and cost-efficiency of the Ethereum network. It uses optimistic rollups to process transactions off-chain and then submits them in batches to the Ethereum blockchain, reducing the load on the main network and lowering transaction fees.

Source: arbitrum.io

 

How does Arbitrum work?

Arbitrum processes transactions off-chain using optimistic rollups. This means that transactions are executed outside of the main Ethereum chain and later submitted as a single batch. The system assumes these transactions are valid (hence "optimistic") unless a dispute arises, in which case a fraud-proof mechanism is triggered to verify their validity.

 

The token

Ticker: ARB

Category: Layer-2 Scaling Solution

Blockchain: Arbitrum

Protocol: Optimistic Rollup

Year of launch: 2023

 

The technology behind Arbitrum

Arbitrum uses optimistic rollups to process transactions off-chain and then batch-submit them to the Ethereum blockchain. This reduces the load on the Ethereum network and lowers transaction costs. The system relies on a fraud-proof mechanism to ensure the integrity of transactions, allowing validators to challenge discrepancies and verify validity when needed.

 

The Arbitrum ecosystem

The Arbitrum ecosystem includes a growing number of decentralized applications (dApps) and DeFi projects that benefit from the platform’s scalability and lower fees. Developers can easily migrate existing Ethereum dApps to Arbitrum without significant changes, which supports smooth transition and wider adoption.

 

Who founded Arbitrum?

Arbitrum was developed by Offchain Labs, a blockchain research and development company founded by Ed Felten, Steven Goldfeder, and Harry Kalodner. The team consists of leading researchers and engineers with expertise in cryptography and distributed systems.

Impact on the environment

Click here to read more information about the impact of this coin on the environment.

Risk disclaimer

Please note: for more information about this crypto asset, consult the official materials provided by the project via arbitrum.io.

Before trading, make sure to read the general risk warning about crypto asset trading:
Cryptocurrencies, including Arbitrum (ARB), are volatile and involve risks. The value of ARB can fluctuate significantly, and investments may result in financial losses. Always do your own research and only invest money you are prepared to lose.

The BTC Direct disclaimer van be found here: https://btcdirect.eu/en-eu/disclaimer