Blockchain
Arbitrum
An Ethereum Layer 2 using Optimistic Rollups with faster fraud proof verification than alternatives.
What is Arbitrum?
Arbitrum is a Layer 2 (L2) scaling solution for Ethereum that uses "Optimistic Rollups." It is designed to increase transaction speed and reduce gas fees while inheriting the full security of the Ethereum mainnet.
How does Arbitrum work?
- Transactions are processed off-chain on the Arbitrum network.
- These transactions are bundled together and submitted to Ethereum as a single batch.
- It assumes all transactions are valid ("optimistic") unless challenged.
- If a fraud challenge occurs, Arbitrum uses an efficient "multi-round interactive" process.
- Only the specific disputed step is executed on Ethereum to resolve the conflict.
Why does Arbitrum matter?
Arbitrum makes Ethereum accessible to more users by lowering the cost of interaction from dollars to cents. It supports all Ethereum developer tools, making it easy for existing dApps to migrate for better performance.
Key features of Arbitrum
- Optimistic Rollup technology
- Significantly lower gas fees than Ethereum
- High transaction throughput
- Full EVM compatibility
- Trustless security via Ethereum
Examples of Arbitrum
- Swapping tokens on Uniswap's Arbitrum deployment for near-zero fees.
- Playing blockchain games that require frequent, cheap transactions.
- Bridging ETH from the mainnet to Arbitrum to use DeFi apps like GMX.