The Arbitrum is an L2 (layer 2) roll-up built on the Ethereum blockchain to improve Ethereum’s scalability and efficiency while providing users with fast and cheap transactions. In the continuance of this article, we explain what the Arbitrum network is, how it works, and whether it has tokens or not?
Some solutions increase the Ethereum network’s scalability and efficiency, and users enjoy faster transactions with more reasonable transaction fees. The Arbitrum L2 is one of the most famous and valuable roll-ups with many applicable features.
What is Arbitrum?
Scalability is essential in Blockchain technology, especially in the Ethereum ecosystem. There are several solutions to increase the scalability of the Blockchain, which Roll-ups are the most exciting. The Arbitrum is one of the protocols working on Optimistic Rollups*. The Arbitrum is a layer-2 solution designed to improve the scalability and efficiency of the Ethereum blockchain.
What are Optimistic Roll-ups?
A Rollup is an “L2” or (So-called “Layer 2”). They are very lightweight, scalable, and can deploy the underlying data on-chain cheaply. This L2 makes them incredibly gas fee efficient and profitable at lower usage of what????.
What is the Purpose of the Arbitrum Network?
The purpose of creating the Arbitrum network (and other roll-ups) is to solve the Ethereum network’s scalability problem. Blockchains want to establish the characteristics of scalability, decentralization, and security together. The conclusion we have reached over the past decade in the cryptocurrency world is that it is challenging, if not impossible, to establish all three of these features in one network.
Increasing demand for the Ethereum network has made the network more expensive (gas cost) in recent years. Arbitrum and other Layer II can significantly reduce the gas fee by increasing the capacity of this network.
The purpose of the Arbitrum as summarized:
- Security: Security depends on the security of the Ethereum network, and only with an honest actor can the security of the second layer results be ensured.
- Full Matching with Ethereum network: The Arbitrum can execute smart contracts and transactions without the slightest change because it is fully compatible with Ethereum Virtual Machine (EVM).
- Scalability: Moving the calculations and storage space out of the chain makes it possible to achieve a higher transaction rate.
- Low Gas Fee: The Arbitrum design reduces transaction costs.
ARBITRUM ONE PORTAL
What is Arbitrum Network’s native token?
At the time of writing, the Arbitrum network has no tokens. However, there are severe speculations about the supply of tokens in this network, especially after the Optimism (OP) token airdrops (probably with the ARB symbol). However, if there is a token with this symbol, it is most likely a scam.
How to Become Eligible for Arbitrum Token Airdrops?
The popular L2 layer. An investor of Arbitrum, Divergence Ventures, also seems to be aiming for the airdrop. For airdrops, you need to bridge from ETH Mainnet to Arbitrum. You will need to pay ETH gas fees. ( bridge.arbitrum.io )
To conveniently add the Arbitrum RPC to the web wallet, users can navigate to the top right corner of the bridge landing page, select ‘Add L2 network’ and follow the prompts.
Arbitrum Ecosystem:
Arbitrum hosts many of Ethereum’s main projects. The network ecosystem is one of the most extensive layer-2 solutions, with more than 300 DApps. We can see the names of some of those DApps in the image below.
Conclusion
Arbitrum is the largest roll-up of the Ethereum network. In this article, we learned what the Arbitrum network is and how it works and also talked about the possibility of creating a native token.