Arbitrum: everything you need to know about ARB

What is Arbitrum?

Arbitrum is a layer 2 scaling solution for the Ethereum blockchain. It is designed to improve the transaction speed and scalability of Ethereum, while keeping costs low. This makes Arbitrum an attractive option for developers and users of decentralized applications (dApps).

How does Arbitrum work?

Arbitrum works by handling transactions off the main Ethereum blockchain, also known as "rollups". It utilizes Optimistic Rollups, where transactions are bundled and then sent to the Ethereum blockchain as a single transaction. This process reduces the load on the Ethereum network and lowers transaction fees.

The ARB token

The native token of Arbitrum is ARB. This token is primarily used for governance, allowing holders to vote on decisions regarding the protocol.

The technology behind Arbitrum

Arbitrum uses Optimistic Rollups, a technology that enables data compression, resulting in faster transactions and lower costs. The validity of transactions is verified by fraud-proof mechanisms, providing a secure and efficient environment.

The Arbitrum ecosystem

The Arbitrum ecosystem is growing rapidly, with many dApps and DeFi projects joining the network. Well-known platforms like Uniswap and Aave are running on Arbitrum, allowing users of these services to benefit from faster and cheaper transactions.

Benefits of Arbitrum

• Low transaction costs: By bundling transactions, the costs for users remain low.
• Scalability: Transactions are processed faster, increasing the capacity of the Ethereum network.
• Compatibility: Arbitrum is fully compatible with Ethereum, which means that any dApp on Ethereum can easily switch to Arbitrum.

Disadvantages of Arbitrum

• Centralization: The technology is still somewhat centralized because a handful of validators are responsible for security.
• Optimistic Rollups: The technology relies on an assumption of validity, which means there is a delay in detecting and correcting fraud.

Who is the founder of Arbitrum?

Arbitrum was developed by Offchain Labs, a team of researchers and engineers, including founders Steven Goldfeder and Ed Felten. The company focuses on improving blockchain infrastructures to make them more accessible and user-friendly.

Expectations for the coming period

Experts expect a minimal price of €2.29 in 2026 and a minimal price of €7.58 in 2031.

Frequently asked questions