Introduction
Arbitrum is a Layer 2 scaling solution for Ethereum, designed to improve transaction speed and reduce costs. By offloading computational tasks to a secondary chain, Arbitrum enhances scalability while leveraging Ethereum’s security.
Key Benefits
- Faster transactions
- Lower fees
- Ethereum-compatible security
How Arbitrum Works
Arbitrum uses optimistic rollups to batch transactions off-chain before settling them on Ethereum.
Optimistic Rollups Explained
- Assumes validity: Transactions are presumed correct unless disputed.
- Fraud proofs: Validators challenge incorrect transactions within a 7-day window.
- Delayed withdrawals: Ensures security but requires a week for processing.
👉 Learn how rollups revolutionize Ethereum scaling
Arbitrum’s Development Team
Created by Offchain Labs, founded by Princeton researchers:
- Ed Felten (Chief Scientist)
- Steven Goldfeder (CEO)
- Harry Kalodner (CTO)
Funding Milestones
- Series B: $120M raised (2021)
- Valuation: $1.2B
Arbitrum’s Growth Metrics
- Peak TPS: 1.1M transactions/day (Feb 2023)
- TVL: $1.68B (leading L2)
- Unique addresses: 3.4M+
| Statistic | Value | Source |
|-----------|-------|--------|
| Daily Transactions | 1.1M | Arbiscan |
| Contracts Deployed | 4,000+/month | Nansen |
The Arbitrum Ecosystem
Four core components:
- Verifier: Validates transactions.
- Key: Manages funds.
- AVM (Virtual Machine): Executes smart contracts.
- Manager: Oversees VM operations.
👉 Explore Arbitrum’s tech stack
The ARB Token
- Governance: Powers the Arbitrum DAO.
- Airdrop: 12.75% of supply distributed (March 2023).
- Use Cases: Voting on protocol upgrades, revenue allocation.
Tokenomics
| Allocation | % |
|------------|---|
| DAO Treasury | 42.78% |
| Team/Advisors | 26.94% |
| Users | 11.62% |
FAQ
1. Is Arbitrum secure?
Yes—it inherits Ethereum’s security via fraud proofs.
2. How much cheaper is Arbitrum?
Gas fees are ~90% lower than Ethereum mainnet.
3. Who controls Arbitrum?
The Arbitrum DAO (decentralized governance).
4. What’s ARB’s max supply?
10 billion tokens.
5. Can I withdraw instantly?
No—optimistic rollups require a 7-day challenge period.
Conclusion
Arbitrum solves Ethereum’s scalability trilemma with low-cost, high-speed transactions while maintaining decentralization. Its growing ecosystem and DAO-driven governance position it as a top Layer 2 solution.
For developers and users alike, Arbitrum offers a seamless path to Ethereum’s future.
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3. **Ethereum scalability**
4. **ARB token**
5. **Arbitrum DAO**
6. **Gas fees**
7. **Offchain Labs**
8. **TVL (Total Value Locked)**
### Notes: