About Arbitrum

What Is Arbitrum (ARB)?

Arbitrum is an Ethereum Layer 2 scaling solution that uses optimistic rollups to achieve improved speed, scalability, and cost-efficiency on the Ethereum network. By moving most of the computation and storage load off-chain, Arbitrum benefits from both the security and compatibility of Ethereum while providing users with higher throughput and significantly lower transaction fees.

The native token of Arbitrum is ARB, which serves as the governance token for the ecosystem. The developers behind Arbitrum, Offchain Labs, have transitioned the protocol to a decentralized autonomous organization (DAO) structure known as the Arbitrum DAO. ARB token holders possess voting rights on proposals that directly affect protocol features, upgrades, treasury fund allocation, and the election of the Security Council, enabling community-driven governance.

Arbitrum has demonstrated significant development progress in recent years. Key initiatives have included the launch of Orbit, its Layer 3 scaling solution, and the introduction of Stylus, which enables developers to deploy programs written in popular programming languages such as Rust and C++. The platform has also expanded its validator set to include more independent institutional validators and continues to strengthen its infrastructure.

A major milestone in Arbitrum's history was the distribution of its ARB token through an airdrop to early users and DAOs building on the platform. The token distribution was conducted on a point-based system, rewarding users based on their interaction with the Arbitrum network. The total supply of ARB tokens is fixed at 10 billion.

Who Are the Founders of Arbitrum?

Arbitrum is developed by Offchain Labs, a development company based in New York. The organization was founded by three former Princeton University researchers with extensive expertise in computer science, cryptography, and blockchain technology: Ed Felten, Steven Goldfeder, and Harry Kalodner.

Ed Felten serves as co-founder and Chief Scientist of Offchain Labs. He is a computer science professor at Princeton University and previously held the position of Deputy Chief Technology Officer under President Obama, bringing significant experience in both academia and government technology policy.

Steven Goldfeder, who holds a Ph.D. from Princeton University, serves as co-founder and CEO of Offchain Labs. His background combines computer science expertise with entrepreneurial experience in the blockchain space.

Harry Kalodner, a computer scientist and Ph.D. candidate at Princeton University, serves as co-founder and Chief Technology Officer of Offchain Labs, overseeing the technical development of the protocol.

Offchain Labs has attracted significant investment from prominent venture capital firms and individual investors, establishing itself as a well-funded and credible development team in the blockchain industry.

What Makes Arbitrum Unique?

Arbitrum distinguishes itself through its implementation of optimistic rollups technology, which provides several key advantages compared to other Ethereum scaling solutions:

Compatibility: Arbitrum supports unmodified Ethereum Virtual Machine (EVM) contracts and transactions. This compatibility means that existing Ethereum decentralized applications (DApps) can operate on Arbitrum without requiring any code modifications, significantly reducing the barrier to entry for developers.

Scalability: The platform can process thousands of transactions per second while maintaining low fees and fast transaction finality. Importantly, these performance improvements are achieved while preserving the security guarantees inherited from the Ethereum mainnet, ensuring users do not sacrifice security for speed.

Flexibility: Through Stylus, developers gain the ability to write smart contracts in multiple programming languages beyond Solidity, including Rust, C++, and others. This flexibility attracts developers with diverse programming backgrounds and enables more innovative application development.

Decentralization: Arbitrum operates without reliance on any centralized operator or sequencer for transaction ordering. Instead, the network employs a decentralized validator network where participants stake ARB tokens and earn fees for contributing to network security, promoting a truly decentralized ecosystem.

Beyond its technical features, Arbitrum has cultivated a vibrant ecosystem comprising numerous DApps, wallet solutions, development tools, and strategic partnerships. This thriving ecosystem positions Arbitrum as one of the leading Layer 2 scaling solutions for Ethereum.

How Many Arbitrum (ARB) Coins Are There in Circulation?

ARB serves as the native governance token of the Arbitrum protocol. The token was distributed to eligible recipients and DAOs through an airdrop mechanism, with 12.75% of the total supply allocated for this purpose.

The primary utility of the ARB token is to enable decentralized governance of the Arbitrum ecosystem. ARB token holders exercise governance rights by voting on proposals that affect both the Arbitrum One and Arbitrum Nova chains. These governance votes determine how the DAO treasury funds are allocated and utilized. Governance proposals can encompass protocol upgrades, modifications to network parameters, allocation of grants and bounties, integration of new features, and other critical decisions affecting the platform's development.

Unlike ETH on the Ethereum network, ARB does not function as a gas fee token. Transaction fees on Arbitrum are paid in ETH or other ERC-20 tokens supported by individual DApps. This design means ARB holders do not need to spend their tokens to utilize Arbitrum services. Instead, token holders can stake their ARB to earn fees for securing the network, creating an incentive structure that rewards long-term network participants.

The total supply of ARB tokens is fixed at 10 billion, providing a predictable tokenomics model. The token allocation distribution is structured as follows: the Arbitrum DAO treasury receives 42.78% (4.278 billion tokens), Offchain Labs teams and advisors receive 26.94% (2.694 billion tokens), investors receive 17.53% (1.753 billion tokens), airdrops to users account for 11.62% (1.162 billion tokens), and airdrops to DAOs represent 1.13% (113 million tokens). This allocation structure balances community governance power, team incentives, investor participation, and user rewards.

How Is Arbitrum Secured?

Arbitrum derives its security guarantees from the Ethereum network, which provides consensus and finality for all Arbitrum transactions. The Ethereum mainnet guarantees the validity of the rollup's off-chain computation and ensures data availability for the computation, creating a robust security foundation.

The optimistic rollups mechanism underlying Arbitrum operates by executing transactions on the rollup layer outside of Ethereum. The protocol bundles multiple transactions into batches and periodically submits these batches to the Ethereum mainnet. The term "optimistic" reflects the protocol's assumption that off-chain transactions are valid by default, eliminating the need to submit proof-of-validity for every transaction.

To maintain security despite this optimistic assumption, Arbitrum implements a fraud-proof mechanism. After a rollup batch is submitted to mainnet, there is a designated challenge period during which any network participant can submit a fraud proof if they detect an invalid transaction. This mechanism ensures that malicious actors cannot exploit the optimistic assumption, as their fraudulent transactions can be challenged and rejected. The ability for anyone to challenge invalid transactions creates a strong economic incentive for validators to act honestly.

This security model effectively combines the efficiency of off-chain computation with the finality and security guarantees of Ethereum consensus, providing users with a high level of security assurance while maintaining the scalability benefits of Layer 2 architecture.

FAQ

What is Arbitrum? What are the differences between it and the Ethereum mainnet?

Arbitrum is a Layer 2 scaling solution built on Ethereum, enabling faster and cheaper transactions. Unlike the mainnet, it uses optimistic rollup technology to batch transactions off-chain, significantly reducing fees and confirmation times while maintaining Ethereum's security.

What are the main advantages of Arbitrum? Why choose Arbitrum?

Arbitrum offers significantly lower transaction fees and faster transaction speeds, solving Ethereum mainnet's high gas costs and congestion issues. It processes transactions off-chain while maintaining Ethereum's security.

How to trade and interact on the Arbitrum network? What wallets and tools are needed?

To trade on Arbitrum, use an Ethereum-compatible wallet like MetaMask. Fund it with ETH to cover gas fees. Access DeFi platforms and DApps on Arbitrum to execute transactions and interactions seamlessly on this Layer 2 solution.

How does Arbitrum compare to other Layer 2 solutions like Optimism?

Arbitrum supports all EVM languages offering greater flexibility, while Optimism delivers faster transaction speeds but with higher fees. Arbitrum excels in versatility and developer options, whereas Optimism prioritizes transaction speed.

What fees do I need to pay to use Arbitrum? How are gas fees calculated?

On Arbitrum, you pay L2 gas fees based on computation and storage used. Gas fees equal L2 gas price multiplied by ArbGas. These fees are significantly lower than Ethereum mainnet.

How secure is Arbitrum? What are the risks?

Arbitrum employs a fraud proof system for security, ensuring transaction validity through cryptographic verification. Key risks include off-chain data availability issues and potential network vulnerabilities. The protocol maintains robust safeguards to mitigate these concerns.

What is the ARB token? What are its uses and value?

ARB is the governance token of Arbitrum, enabling holders to vote on protocol upgrades, feature changes, fund allocation, and security committee elections. Its value derives from governance rights and influence over the Arbitrum ecosystem's future development.

How to bridge assets from Ethereum mainnet to Arbitrum?

Connect your wallet to Ethereum mainnet, visit the Arbitrum bridge, select your token, enter the amount, and confirm the transaction. Your assets will arrive on Arbitrum after the bridge processes them.

Arbitrum生态中有哪些主要的DApp和项目？

Arbitrum生态的主要DApp包括Uniswap、Aave、GMX和Magic Eden等。这些项目充分利用Arbitrum的高效率和低成本优势，为用户提供DEX、借贷、交易和NFT市场等多元化服务。