Arbitrum is one of Ethereum’s second-layer scalability solutions that aims to improve the speed, scalability, and cost of Ethereum transactions. Arbitrum uses the security and connectivity of the Ethereum network, but it has a lower cost than Ethereum. This advantage is due to the transfer of computational load and operations off-chain. The Arbitrum Network’s proprietary token with the abbreviation ARB governs and votes on protocol development, fund allocation, and electing the Arbitrum DAO Security Council.
What is Arbitrum Network?
The Arbitrum Network is known as Ethereum’s two solutions, which were created and implemented to increase Ethereum contracts’ capacity. The increase in Ethereum network transaction fees has led to suspending this movement’s continued development. The emergence of Arbitrum technology largely solves the problem of overcrowding and the high cost of these operations in the Ethereum network. The implementation and execution of transactions on the Ethereum network are done through smart contracts. On the other hand, a fee needs to be considered to reward people who store smart contracts on their devices. As the number of network users increases, the network must process more transactions.
In this way, transaction fees will increase. In addition, miners must simulate all stages of the implementation of smart contracts in the network. This issue will slow down and slow down the internet speed and need to spend a lot of money. On the other hand, the code and data related to each of the smart contracts of the Ethereum network must be made public. Of course, if the contract contains a confidentiality coverage clause, it will not be covered by this rule.
Special Features of Arbitrum
The Arbitrum project aims to provide a simple platform for building highly efficient and scalable smart contracts compatible with Ethereum. Of course, Arbitrum is not the first platform that aims to overcome the limitations of Ethereum, and today many other solutions have entered the competition with similar functionality. So the question is, what sets Arbitrum apart from other projects?
1. very high compatibility with EVM
Arbitrum is one of the most compatible packages with Ethereum Virtual Machine. This network is compatible with EVM at the bytecode level, so any language that can be compiled with this machine, such as Solidity and Viper, will work with it. It makes it easier for developers because they do not have to learn a new programming language.
2. A powerful toolkit for developers
The Arbitrum Network support team has done its best to minimize barriers to entry. Because of this, the team created extensive developer documentation for the project, and developers can start using the same tools available for Ethereum. Therefore, you don’t need to download anything specific to Arbitrum, such as plugins or comparators like Hardhat or Truffle.
3. Low costs
As an Ethereum Layer 2 solution, Arbitrum is designed not only to increase the transaction efficiency of this network but also to reduce its fees. Thanks to the high-efficiency rolling technology, Arbitrom can eliminate additional fees in addition to providing sufficient financial incentives for auditors.
4. The development ecosystem
The platform currently works with various DAPs, including UniSwap, Dodo, SushiSwap, and dozens of others.
What is the difference between Arbitrum and other roll-ups?
The big difference between the Arbitrum compilation and other compilations is that this chain has fewer data. Arbitrum Rollup can support EVM smart contracts and works with all Ethereum developer tools. The Arbitrum recording chain is a double chain with an infinite expansion. Like other recordings, the Arbitrum recording chain is based on the Ethereum blockchain, secured by the Ethereum network, and all transaction data is recorded in Ethereum. Therefore, it can support all EVM languages and supports all Ethereum devices, without special adapters. The cost issue is the only case where Arbitrum’s rollup is not the same as Ethereum’s. Transactions on Arbitrum have lower fees than Ethereum.
Transferring Ethereum contracts to Arbitrum is quick and easy and requires no code changes or new software downloads. Although developers and users do not need to download special software to distribute contracts and interact with Arbitrom’s review chain, some users may wish to review the chain themselves. When using Arbitrum Rollup, your security is ensured because any honest user can guarantee the proper functioning of the system. Arbitrum chain verification is completely unauthorized. You just need to download the Arbitrum Validator node software and place your node in the chain. To file a claim or dispute, you only need to post the shares that you will get back after the claim is resolved.
Features of ARB token
Arbitrum uses trust rollups to solve Ethereum’s scalability problem. Therefore, it can process thousands of transactions per second with low fees and high speed and provide Ethereum security. Arbitrum supports Ethereum virtual machine contracts and transactions. This means that Ethereum decentralized applications can run on Arbitrum without modifying their code. Arbitrum also allows developers to extend programs written in popular programming languages such as Rust and C++. The network does not rely on any particular organization and has a dedicated network of certified users. ARB signs and receives connection fees. Arbitrum has an impressive ecosystem of decentralized applications, wallets, tools, and partners, making it the leading solution for Ethereum.
What is the future of Arbitrum?
The first layers of Ethereum are decentralized and focused on security. Due to this the transaction fee has increased. But other layers apart from the mentioned two also take care of network scalability. Focusing on this triad has made the popular Arbitrom network a second-layer security solution for Ethereum. This platform has many features and benefits and helps to improve the Ethereum user experience with a strong development team. According to these explanations, Arbitrum will play an important role in the growth of the Ethereum blockchain and is expected to reduce its limitations by improving its performance and using modern technologies.
the last word
Tier 1 projects like Ethereum and Bitcoin prioritized decentralization and security over scalability, resulting in higher fees. However, Arbitrum Network, as an Ethereum off-chain Layer 2 solution, has solved this blockchain triple dilemma by adopting an optimistic roll-up strategy. Of course, according to the Ethereum community, in the long term, other comprehensive scalability solutions such as zero-knowledge roll-up are needed.