About the coin

Arbitrum is a prominent Ethereum scaling solution designed to provide cost-effective transactions to a vast number of users. It operates as an optimistic rollup, which is a type of layer 2 (L2) scaling solution that enhances Ethereum's capabilities by processing transactions off-chain and then posting the results on-chain. This approach significantly reduces transaction costs and increases throughput, making it an attractive option for developers and users alike.

Main features

Arbitrum stands out as the leading L2 solution in terms of Total Value Locked (TVL), indicating its widespread adoption and trust within the crypto community. It hosts some of the largest decentralized applications (dApps) in the ecosystem, including GMX, Radiant, Uniswap V3, and Gains Network. These dApps benefit from Arbitrum's efficient transaction processing and lower fees, which enhance user experience and accessibility.

How it works

The core mechanism of Arbitrum involves processing transactions off the Ethereum main chain and then submitting a summary of these transactions back to the main chain. This process, known as an optimistic rollup, assumes that transactions are valid and only checks them if there is a dispute. This assumption allows for faster and cheaper transactions compared to processing each transaction directly on Ethereum. Arbitrum's design ensures compatibility with Ethereum, allowing developers to easily port their applications to the Arbitrum network without significant modifications.