Arbitirum is a popular Layer-2 scaling solution for Ethereum, which offers a faster, cheaper, and more scalable infrastructure for Ethereum-based dApps. It uses Optimistic Rollup technology to process transactions off-chain and records them in batches on the Layer-1 Ethereum network.
Arbitrum aims to tackle Ethereum’s scalability challenges by offering a platform for dApps developers and users with lower transaction fees and higher throughput without compromising on the exemplary level of security that Ethereum is known for. The Layer-2 Arbitrum network aims to make Ethereum’s ecosystem more accessible and usable for everyone, taking on competitors such as Layer-1 Ethereum killers, e.g., Avalanche, BNB Chain, Solana, and other EVM-compatible chains.
Unlike other Layer-1 Ethereum competitors, developers can create custom dApps using Solidity - the same smart contract programming language used by Ethereum. This lets Ethereum-based dApps conveniently port to the Arbitrum network, enjoying a seamless migration and the experience of faster and cheaper transactions.
Arbitrum has an ambitious roadmap for 2023, which includes launching its own layer-three solution called Orbit, enabling developers to deploy programs written in popular programming languages, expanding its validator set to include more independent institutional validators, and moving its protocol to layer two with Arbitrum One.
The key question, “Does Arbitrum have a token” has finally been answered with the launch of Arbitrum’s official token in March 2023. ARB is the native token of the Arbitrum network and the governance token of the Arbitrum DAO. ARB holders can participate in the decentralized governance mechanism of the Arbitrum One and Arbitrum Nova networks, enabling community-driven DAO governance of the L2 network.