What is Arbitrum (ARB token)?
Arbitrum is a layer 2 solution built to improve problems in Ethereum smart contracts such as performance, execution costs, etc. Thereby improving user experience and reducing transaction costs.
The project allows developers to easily deploy Ethereum Virtual Machine (EVM) contracts without modifications. Arbitrum conducts Ethereum transactions on layer 2, while still ensuring the security of Ethereum's strong layer 1.
The platform uses a rollups model, where transactions are made outside the main blockchain, then hashed to include on the blockchain and confirm the order. This helps reduce the burden on layer 1, transaction time and costs. Arbitrum has now become a reputable platform, used by many launchpool and mainnet projects.
Characteristics of Arbitrum
- Highly EVM compatible: The platform is one of the most EVM compatible rollups, supporting Solidity and Vyper languages. This makes it easy for developers to innovate decentralized applications (dApps) on Arbitrum without learning a new language.
- Developer support: The team focuses on minimizing complexity for developers, providing comprehensive documentation. Arbitrum integrates existing tools for Ethereum such as Hardhat, Truffle without the need to install additional plugins.
- Low transaction fees: The project uses efficient rollup technology to minimize transaction fees to low levels while retaining benefits for validators.
- Ecosystem: Arbitrum cooperates with many dApps and infrastructure projects in the Ethereum community such as Uniswap, DODO, Sushi... Thereby creating a diverse, strong and sustainable development ecosystem.
How Arbitrum works
Arbitrum is a layer 2 solution for the blockchain system, specifically designed to solve the scalability problem of Ethereum. The platform uses a rollup model, allowing transactions and state changes of smart contracts running on layer 2, reducing the load on the main blockchain (layer 1). Transactions are then hashed and confirmed on Ethereum, enhancing performance while maintaining network security.Arbitrum provides a trustless bridge between layer 1 and layer 2, allowing users to transfer secure, decentralized assets. The platform maintains high compatibility with the Ethereum Virtual Machine (EVM), allowing decentralized applications (dApps) and smart contracts to deploy flexibly between the two layers without the need for major modifications.
The project's security system is guaranteed by the decentralized mechanism and consensus of operators during the transaction confirmation process. This ensures that all network orders are processed quickly and safely, avoiding errors or unnecessary loss of assets.
Some products belong to the Arbitrum ecosystem
- Arbitrum Rollup (Arbitrum One): Arbitrum Rollup is a product that helps scale on Ethereum, running securely thanks to Optimistic Rollups technology. The product is specifically designed for DeFi, NFT and DAO market developers. Some typical projects deployed on Arbitrum One include Treasure (NFT Gaming), The Graph (DAO, infrastructure) and GMX (DeFi).
- Arbitrum AnyTrust (Arbitrum Nova): The product provides best-in-class security capabilities, based on DAC data. Arbitrum Nova has low fees, making it easy for investors to participate.
- Arbitrum Orbit: Arbitrum Orbit allows the creation of specialized chains without permission. Features include custom gas tokens, privacy... fully meet the specific needs of many projects.
- Arbitrum Nitro: Arbitrum Nitro is a comprehensive upgrade for products in the Arbitrum ecosystem. The product offers good performance at low fees, improving user experience through the WASM virtual machine and Geth language.
Tokenomics
- Token name: Arbitrum
- Symbol: ARB
- Contract: 0x912CE59144191C1204E64559FE8253a0e49E6548
- Blockchain: Arbitrum
- Total supply: 10,000,000,000 ARB
Token allocation
- DAO treasury: 42.78%
- Team and advisors: 26.94%
- Investors: 17.53%
- Personal wallet: 11.62%
- Arbitrum ecosystem DAO: 1.13%
Price fluctuations and trading platforms
ARB token is trading at $2.04, down 4.09% in one day. According to CoinMarketCap data, Arbitrum's 24-hour volume is $431,839,562, down 6.09%. The project's capitalization reached $2,603,975,352, down 4.01%.
Where can you buy ARB tokens?
Investors can buy ARB tokens at popular exchanges such as Binance, Uniswap, OKX, HTX, Coinbase...
Team
Arbitrum is developed by the company Offchain Labs, founded by Ed Felten, Steven Goldfeder and Harry Kalodner. Among them, Ed Felten has been researching Rollup technology since 2014. After serving at the White House as deputy director of technology, Ed returned to Princeton University, continuing research with Steven Goldfeder and Harry. Kalodner. From there, three developers created Arbitrum.