What Is Arbitrum (ARB)?
Arbitrum is a Layer 2 (L2) scaling solution for Ethereum. It leverages optimistic rollups to enhance speed, scalability, and cost efficiency while maintaining Ethereum's security and compatibility. Key benefits include:
- Higher transaction throughput
- Lower fees compared to Ethereum
- Off-chain computation reduces mainnet congestion
The native token, ARB, facilitates governance through the Arbitrum DAO. Holders can vote on protocol upgrades, fund allocation, and security council elections.
Key Developments (2023):
- Launch of Orbit, a Layer 3 solution
- Stylus integration for multi-language support (Rust, C++)
- Expansion of institutional validators
- Migration to Arbitrum One
On March 16, 2023, Arbitrum distributed ARB tokens via an airdrop to early users and DAOs, with 12.75% of the total supply reserved for future distribution.
👉 Learn more about Ethereum scaling solutions
Founders of Arbitrum
Developed by Offchain Labs, a team focused on Ethereum scalability.
Unique Features of Arbitrum
- Optimistic Rollups: Batches transactions off-chain for efficiency.
- EVM Compatibility: Seamless integration with Ethereum smart contracts.
- Decentralized Governance: ARB token holders steer protocol evolution.
ARB Token Supply
- Circulating supply: Dynamic (check CoinMarketCap for updates).
- Total supply: Fixed at creation, with vesting schedules for team/advisors.
Security Measures
- Inherits Ethereum’s security via rollup proofs.
- Fraud-proof mechanisms ensure transaction validity.
Where to Buy ARB
Available on major exchanges like:
- Binance
- OKX
- Coinbase
FAQs
How does Arbitrum reduce fees?
By processing transactions off-chain and submitting compressed data to Ethereum.
Is ARB a good investment?
DYOR—consider adoption rates, ecosystem growth, and market trends.
Can I stake ARB?
Currently used for governance; staking may be introduced in future upgrades.
👉 Explore DeFi opportunities on Arbitrum
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