Ethereum Layer 2 Solution: Arbitrum is a platform for scaling the Ethereum blockchain (Layer 2 solution), which aims to improve the scalability, speed and performance of decentralized applications (dApps) built on Ethereum.
Features:
Arbitrum has its own "ARB" token and uses rollup technology to aggregate and execute off-chain transactions and smart contracts before submitting them to the Ethereum blockchain as cryptographic proof. This approach reduces congestion and gas charges associated with Ethereum transactions.
Some important features of Arbitrum include:
Ethereum Compatibility: Arbitrum is designed to be fully compatible with Ethereum and its programming language, Solidity. This means that developers can deploy their dApps on Arbitrum without having to rewrite or adapt their code.
Rollups: Arbitrum uses a technology called "Optimistic Rollups" to improve scalability and performance. Rollups aggregate transactions and execute them off-chain, then submit cryptographic evidence of their validity to the Ethereum blockchain. This reduces the load on the main blockchain and allows more transactions to be processed in less time.
Security: By using Optimistic Rollups, Arbitrum benefits from the decentralized security of the Ethereum network, while offering improvements in performance and scalability.
Reduced fees: By executing transactions and smart contracts off-chain, Arbitrum reduces the overhead associated with Ethereum transactions, making dApps more accessible and affordable for users.