What is it?
Arbitrum is a layer two (L2) solution built on top of the Ethereum network. It aims to increase the speed, scalability and cost efficiency of Ethereum by using a scaling technology called Optimistic Rollup.
What does it do?
Arbitrum provides a platform that allows developers to create secure, fast and cheaper applications. It achieves this by moving transaction costs from the Ethereum mainnet to L2 and relying only on the mainnet in cases of conflict.
Why is it used?
Arbitrum is used to solve problems faced by the Ethereum network, such as high transaction fees and slow transaction speeds. Developers can benefit from lower fees and faster transaction confirmation times by deploying their dApps (decentralized applications) on Arbitrum.
Who uses it
Developers: Use the platform to create innovative applications on Arbitrum.
dApp users: Can interact with Arbitrum-based applications to benefit from lower fees and faster transactions.
Cryptocurrency investors can: Trade on Arbitrum or invest in the ARB token.
How does it work
Arbitrum uses a scaling solution called Optimistic Rollup. In this solution, transactions are moved out of the Ethereum mainnet in bulk. These transactions are then verified on the Arbitrum chain. In case of a dispute, transaction data is sent back to the security mechanism on the Ethereum mainnet.
What is the proof?
Arbitrum bases its security on the Ethereum network. Since transaction data is always available on the Ethereum mainnet, Arbitrum is considered a secure environment.
Additionally
Offchain Labs: Offchain Labs, the company behind Arbitrum, plays a key role in the development, maintenance, growth and research and development of the platform.
ARB token: Used in the governance of the Arbitrum ecosystem. ARB owners can vote on decisions about the future of the network.
