A new token Arbitrum (ARB) is getting popularity in the cryptocurrency market. The token is currently ranking at #37 on the Coinmarketcap ranking. Read this full article to know more about Arbitrum in detail.
What Is Arbitrum (ARB)?
Arbitrum (ARB) is a Layer 2 scaling solution for Ethereum, designed to improve the efficiency of the Ethereum network by reducing gas fees and transaction times. It was developed by Offchain Labs, a blockchain startup, and launched in August 2021.
Arbitrum operates as a sidechain to Ethereum, which means that it operates separately from the main Ethereum blockchain but is still connected to it. This allows users to transfer assets between Arbitrum and Ethereum seamlessly. Arbitrum uses a technique called optimistic rollups, which involves bundling multiple transactions into a single transaction and then submitting them to the Ethereum network.
One of the main benefits of Arbitrum is its ability to significantly reduce gas fees for users. Gas fees are the fees paid to Ethereum miners for processing transactions on the network. These fees can be high during periods of high network congestion, making it expensive for users to perform even simple transactions. Arbitrum aims to solve this problem by reducing the number of transactions that need to be processed on the main Ethereum network.
Overall, Arbitrum aims to improve the scalability and efficiency of the Ethereum network, making it more accessible and affordable for users. It has already gained significant traction in the DeFi space, with many projects migrating to the platform to take advantage of its benefits.
Who Are the Founders of Arbitrum?
The Arbitrum project was founded by Offchain Labs, a startup that was co-founded by three individuals:
1. Ed Felten: Ed Felten is a computer science professor at Princeton University and is also the co-founder and Chief Scientist of Offchain Labs. He has extensive experience in the field of computer security and has served as the Chief Technologist for the Federal Trade Commission.
2. Steven Goldfeder: Steven Goldfeder is a computer science professor at Cornell University and is also the co-founder and Chief Executive Officer of Offchain Labs. His research interests include cryptography, privacy, and security.
3. Harry Kalodner: Harry Kalodner is a computer science researcher who has worked at the University of Maryland and Princeton University. He is also a co-founder and Chief Technology Officer of Offchain Labs. His research focuses on security and privacy issues in blockchain and cryptocurrency systems.
Together, these three individuals have brought their extensive expertise in computer science and blockchain technology to develop the Arbitrum platform.
What Makes Arbitrum Unique?
Arbitrum is a layer-2 scaling solution for Ethereum that uses Optimistic Rollups, a technology that allows for cheaper and faster transactions without sacrificing the security of the underlying blockchain. Here are some of the key features that make Arbitrum unique:
Low transaction fees: Arbitrum is designed to reduce the high transaction fees on Ethereum by moving most of the computational work off-chain. This means that users can perform transactions more efficiently and at a lower cost.
Fast confirmation times: Transactions on Arbitrum are confirmed within minutes, rather than the hours it can take on Ethereum. This makes Arbitrum ideal for applications that require fast confirmation times, such as decentralized exchanges and trading platforms.
Easy integration with existing Ethereum applications: Developers can easily port their existing Ethereum applications to Arbitrum with minimal changes to the codebase. This allows them to take advantage of Arbitrum’s scaling benefits without having to rebuild their entire application from scratch.
High level of security: Arbitrum uses Optimistic Rollups, a technology that provides a high level of security by allowing for fraud proofs to be submitted to the Ethereum mainnet in case of malicious behavior on the layer-2 network.
Support for smart contracts: Arbitrum supports the full range of Ethereum smart contracts, allowing developers to build complex decentralized applications that can take advantage of its scaling benefits.
Overall, Arbitrum’s combination of low transaction fees, fast confirmation times, easy integration with existing applications, high level of security, and support for smart contracts make it a unique and compelling solution for scaling Ethereum.
How Is Arbitrum Secured?
Arbitrum is a layer-2 scaling solution for Ethereum that aims to improve transaction throughput while maintaining the security and decentralization of the Ethereum network. Here are some of the security features that help to secure the Arbitrum network:
Optimistic Rollups: Arbitrum uses optimistic rollups, which is a scaling technique that bundles many transactions into a single batch and then submits them to the Ethereum blockchain. This allows for faster and more efficient transactions while maintaining the security of the Ethereum network.
Fraud Proofs: Arbitrum uses a fraud-proof system to detect and prevent malicious behavior. The fraud-proof system ensures that any invalid transactions or data are rejected, and the responsible parties are penalized.
Trusted Execution Environment: Arbitrum uses a trusted execution environment (TEE) to protect user data and prevent unauthorized access. The TEE ensures that code execution is isolated and secure, preventing any tampering or malicious behavior.
Open Source Code: Arbitrum’s code is open source, meaning that it is publicly available for inspection and review. This allows for greater transparency and community participation in identifying and fixing security issues.
Overall, the combination of these security features and the ongoing efforts of the development team to improve and refine the system help to ensure that Arbitrum remains secure and reliable.
Where Can You Buy Arbitrum (ARB)?
If you want to buy Arbitrum (ARB) then you can use centralized exchanges like Binance, Bybit, BitMEX, Poloniex, OKX, KuCoin, and more because they have announced that they will be listing Arbitrum (ARB) on their exchanges.
I am Pawan Kashyap currently living in Amritsar. I always try to grab new things from the cryptocurrency market. From my observations and trends in the market, I always try to provide the best and accurate information in the form of articles from this blog. Follow us on Facebook, Instagram, and Twitter to join us.