Arbitrum is an optimistic rollup that enjoys the first-mover advantage in its niche. The network is completely decentralized and is extremely useful to creator of dApps. Since it is highly EVM compatible, developers can conveniently migrate their existing Ethereum apps to the new blockchain and will not need to rewrite a lot of the code. With more than $2 billion in total value of DeFi protocols, Arbitrum is the largest layer 2 blockchain of Ethereum. It hosts some of the most famous dApps, including UniSwap, Aave, and MakerDAO. The popularity of this network is boosted by the fact that it works on Ethereum, which is the second-largest crypto network.
Briefly about Arbitrum Blockchain
This network was created by Offchain Labs, a company which was founded by Steven Goldfeder. The company is currently building a whole suite of scaling solutions. Ed Felten and Harry Kolodner have also been heavily involved in the Arbitrum project. This product is mainly meant to help creators of dApps scale their projects, and it is especially useful since it works on the Ethereum blockchain.
The Arbitrum network can be seen as an ideal scaling solution for many DeFi apps on Ethereum blockchain.CryptoLists.com
This network falls under a type of technology known as optimistic rollups, and it allows Ethereum smart contracts to scale by passing messages between Ethereum main chain and Arbitrum. The transaction will mostly be processed on the second layer network, and the results will be added to the main chain. This helps to increase the transaction speeds. The native token was released on 23rd of March 2023. All fees are paid for in ETH.
Utility of Arbitrum Blockchain?
A key advantage of this network is that it helps to lower transaction fees on the Ethereum blockchain. So far, users have been trading on Arbitrum for about a tenth of the price of regular ETH transactions. The network is also able to handle more transactions per second, and this makes it generally faster. With these benefits, the network is also able to offer high levels of security since transactions are confirmed on the main chain.
Arbitrum Blockchain
Release Date: May 28, 2021
Advantages at Arbitrum Blockchain
+ Arbitrum helps to lower the costs of crypto transactions.+ Arbitrum network is EVM compatible.
+ It features powerful developer tools.
+ Arbitrum blockchain is extremely fast.
Disadvantages
- Its fraud detection systems are not as advanced as those of Optimism.- Arbitrum may become less relevant when Ethereum 2.0 is rolled out.
- Developers have to wait 7 days for security protocols to be enacted.
- Arbitrum is a little complex to use, especially for beginners.
Costs
▪ Rated at 10/10One of the main goals of the creators of this network was to lower transfer fees. At the moment, transactions cost users about $1, and these fees have to be paid in ETH. These fees are expected to go down by about 90%, meaning people will be able to trade cryptocurrencies for cents. The reduced fee will also make the network highly appealing to minters of NFTs.
Reputation and Buzz
▪ Reputation rated at 9/10▪ Buzz rated at 9.5/10
Arbitrum is still fairly new, but it has attracted the attention of lots of crypto enthusiasts and dApp developers. Some respected platforms like Opensea are already using the network. The official Twitter page of the blockchain was registered in late 2020 and currently has over 200,000 followers. People are generally optimistic about the project, but there are some concerns that it may become less useful when Ethereum 2.0 is introduced.
FAQ
Who created Arbitrum Blockchain?
This network was created by Offchain Labs, and it was spearheaded by Steven Goldfeder, Harry Kalodner, and Ed Felten.
Which coins or tokens can be used on Arbitrum ecosystem?
Some of the most used coins and tokens on Arbitrum blockchain include, but is not limited to, Tether (USDT), USD Coin (USDC), Wrapped Bitcoin (WBTC), Dai (DAI), Chainlink (LINK), Uniswap (UNI), The Graph (GRT), True USD (TUSD), Curve Dao Token (CRV), Yearn Finance (YFI), Sushi (SUSHI), Multichain (MULTI), Balancer (BAL), Magic (MAGIC), Vesta Finance (VSTA) and xToken (XTK). By using Arbitrum network's scaling solution, you can save lots on the fees when doing transfers.
Is Arbitrum Blockchain proof of stake?
Transactions on this network are confirmed on the Ethereum blockchain, and this currently uses the proof of work verification method. This design helps to ensure that Arbitrum blockchain is extremely secure.
Will Arbitrum Blockchain overtake Ethereum?
Ethereum is currently the second most important blockchain after Bitcoin, and it is highly unlikely to lose its position any time soon. Also, you should note that Arbitrum depends on Ethereum to function, and that means it cannot possibly overtake Ethereum.
Can Arbitrum be easily hacked?
No, since this network is decentralized it cannot be practically hacked. To date, no one has been able to hack Ethereum or Bitcoin, so you can be certain that this network is also secure.
Is Arbitrum a coin or token?
No, this blockchain does not have a coin or token. All transaction fees are made using ETH.
History about Arbitrum Blockchain
March 23 2023 - The native token was released to much hype.
›› Trade Arbitrum here›› Buy/Sell Arbitrum hereScreenshots from Arbitrum Blockchain
Native crypto coin for this blockchain? Learn more about Arbitrum (ARB)
ARB is the native coin for Arbitrum Blockchain. It is therefore also worth reading more about that on the link below.›› Read our full Arbitrum review here
Join the Arbitrum train with the newly launched ARB coin!
Arbitrum overtakes Ethereum in transactions - ICO soon?
