Arbitrum is a layer 2 scaling project that works on the Ethereum ecosystem. It deals with the shortcomings of the Ethereum platform, namely, high gas fees and lower speeds. To achieve the goal, it uses Optimism rollup technology to group transactions before sending them on the Ethereum platform. Its network will be commonly used by decentralized exchange networks to enable users to make fast, one-on-one transactions. The ARB token is one of the most anticipated coins of the past year, with many predicting a very high uptick in the price during the next bull run.
A Bit About Arbitrum
Arbitrum was founded by Offchain Labs in 2018. This team was cofounded by Ed Felton, a renowned computer science professor stationed in Princeton. The blockchain was created to improve Ethereum, especially when it comes to gas fees and the speed of transactions. Ethereum has a very secure and easy-to-use platform that allows for easy transactions. However, it suffers from high gas fees and the limited number of transactions it allows users to complete per second on its network. ARB provides a layer over the Ethereum network to improve these two aspects while taking advantage of Ethereum security to complete transactions. The platform will be used by decentralized exchanges (DEX) to enable their customers to transact in cryptocurrencies without the use of an intermediary. Its native token will also be used by individual users to buy goods and services on the network.
Arbitrum's native coin is finally here!CryptoLists.com
ARB is a scaling solution that applies to Ethereum. Layer 2 scaling supports all Ethereum projects. It is applied on Ethereum to lower the cost of transactions by grouping batches of transactions together and passing them on as one. The layer also saves on speed as it processes several transactions before passing them onto Ethereum. In addition, ARB is its governance token of the same name. It serves as an investment and transaction tool for individuals that would like to use the platform. The technology is unique in that it uses ARBGas to track the costs of execution on the platform, giving users a clear view of their costs.
Utility of Arbitrum?
There are several reasons why many people are moving over to Arbitrum. Here are some of the most compelling ones.
Low Technology Migration Costs
Since the Arbitrum network operates on the Ethereum network, it is easy for developers that were already on the network to migrate to it without making technological changes to their projects. Second, its rollup solution is popular with developers as it is less complex than many of the similar solutions on the market.
Greater Speeds and Lower Cost
Arbitrum is able to process up to 40,000 transactions per second. This is larger than Ethereum’s 30 requests at the same time. This helps reduce network congestion and increases the speed of individual transactions. It completes these transactions for about 36 times less than the average fee charged by Ethereum.
An Open Ecosystem
The technology behind the rollup solution at Arbitrum uses an open ecosystem that allows many projects to operate on the network without stringent requirements. Most roll-up systems, including the Optimistic one that uses the same technology, use a whitelist technology that must ‘approve’ projects before they can run on the network. The process becomes long and expensive as a result.
Arbitrum Price detailsARB Contract address: 0x912CE59144191C1204E64559FE8253a0e49E6548
›› Details & Tokenomics
Advantages of Arbitrum+ 30 times cheaper than transacting on the Ethereum network.
+ ARB users make use of Ethereum security for their transactions.
+ Users are able to make speedy transactions on the network.
+ Gas tracking tool provides visibility on cost requirements.
+ The network is compatible with Ethereum Virtual Machine (EVM).
Disadvantages- Lower security than using the Ethereum platform.
- The token has not hit the market for growth evaluation.
- ARB has not been able to move away from optimism rollup technology.
- Arbitrum is not as fast as the rival Polygon transactions.
- It has not handled other Ethereum weaknesses as it uses the same system.
Costs▪ Rated at 9.5/10
ARB chain enforces a gas price floor that stands at 0.1 gwei on Arbitrum One and 0.01 gwei on tractions done on Nova. For perspective, 1 gwei is equal to 0.000002 USD. This transaction value is 36 times lower than that of Ethereum transactions, saving users a significant amount that may have been lost in fees.
Reputation and Buzz▪ Reputation rated at 9/10
▪ Buzz rated at 10/10
Arbitrum has continued to gain positive reviews throughout the market, with many DeFi Dapps, such as Aave, Slingshot, GMX and Uniswap, choosing it over competing Layer 1 networks. There had been fears that its lowering of fees would lead to increased attacks on its system. However, this did not happen. The platform remains safe and secure for those who wish to run projects here.
Recently, ARB made its airdrop announcement, allowing eligible token users to sell off their unreleased coins over the counter. The announcement also transitioned the system into a decentralized autonomous organization. This means that ARB holders have the power to vote on key decisions governing both Arbitrum One and Nova. Over-the-counter trading makes transactions faster as buyers can transfer money directly from their bank accounts.
What makes Arbitrum a better solution than Ethereum?
Arbitrum improves on some of the major weaknesses of Ethereum, such as its high gas fees and low speeds. It uses rollup technology to group transactions together, lowering the cost of each transaction. The grouping of the transactions also reduces congestion on the Ethereum network, allowing for faster transactions.
What is meant by Decentralized Autonomous Organization (DAO)?
A decentralized autonomous organization (DAO) is a type of legal structure with no central governing or management body and members who share the same purpose of acting in the best interests of the company. DAOs are used to make choices in a bottom-up management style and have gained popularity among crypto enthusiasts and blockchain platforms. ARB is moving toward DAO status.
Can you buy Arbitrum (ARB) tokens now?
Yes, you may purchase it either from the Arbitrum website or any other exchange that will offer the coins. On March 23, 2023, the Arbitrum token was be launched as the company became a DAO. From then on, you were able to buy and sell your tokens directly. You'll see where to buy it a bit further down the page.
History of Arbitrum
September 1, 2018: The network is formed by Offchain Labs.
August 31, 2022: The official launch of the Arbitrum One network.
February 16, 2022: Arbitrum integrates with Coinbase.
March 18, 2023: proposed evolution of Arbitrum into a decentralized autonomous organization.