What is Arbitrum?
Arbitrum is a Layer 2 Optimistic Rollup solution founded in 2018 by Offchain Labs to help scale Ethereum.
By helping to scale Ethereum, this results in lower transaction fees, faster confirmations, and a better user experience for those swapping crypto without sacrificing Ethereum’s security. Arbitrum achieves this by decreasing network congestion and transaction costs by offloading this work away from Ethereum’s busy Layer 1 network.
What are the core features of Arbitrum?
- Low transaction fees: Arbitrum offers low transaction fees due to its scalable infrastructure, making it an attractive platform for developers and users.
- Ethereum compatibility: Arbitrum is fully compatible with the Ethereum network, supporting all Ethereum-based assets and tools, making it easy for developers to migrate their dApps from Ethereum to Arbitrum.
- Decentralization: Like other blockchain networks, Arbitrum is decentralized, meaning that no single entity has control over the network. This ensures the security and integrity of the network.
- Security: Arbitrum uses a system of fraud proofs and challenges to ensure the security of its transactions and prevent any malicious activity on the network.
- Smart contract functionality: Arbitrum supports smart contracts, allowing developers to build decentralized applications (dApps) and execute complex financial transactions.
- Community-driven: Arbitrum has a strong and active community of developers, users, and stakeholders who contribute to the development and growth of the platform.
- Interoperability: Arbitrum is designed to be interoperable with other blockchain networks, allowing for seamless exchange of assets and data between different systems.
What is the native token of Arbitrum?
The native token of the Arbitrum network is called “Arbitrum One” (formerly known as “ARB”). It is a utility token used to pay for gas fees and participate in the consensus mechanism of the Arbitrum network. Arbitrum is a Layer 2 scaling solution for Ethereum, designed to increase the throughput and reduce the transaction fees of the Ethereum network. The Arbitrum network uses a unique Optimistic Rollup technology, which allows it to process transactions off-chain while maintaining the security and integrity of the Ethereum blockchain.
In the Arbitrum network, users can use ARB to pay for transaction fees and earn rewards for participating in the network’s consensus mechanism. ARB can also be used for governance, allowing holders to vote on proposals and decisions related to the future development of the Arbitrum network. It’s worth noting that the Arbitrum network also supports the use of Ether (ETH) as a means of payment for gas fees and other transactions.