Arbitrum has emerged as a leading Ethereum scaling solution, gaining significant traction even before its 2023 airdrop. As a Layer 2 protocol, it enhances Ethereum's scalability while maintaining security and decentralization—key factors driving its adoption across the crypto ecosystem.
What Is Arbitrum?
Arbitrum is an optimistic rollup-based Layer 2 blockchain designed to boost Ethereum’s transaction throughput. Developed by Offchain Labs, it processes transactions off-chain in batches before settling them on Ethereum, reducing congestion and gas fees. Key features include:
- Seamless developer migration from Ethereum Layer 1
- Native token (ARB) launched in March 2023 for governance
- Mainnet rollout in 2021
👉 Discover how Layer 2 solutions like Arbitrum revolutionize Ethereum
How Arbitrum Works: Optimistic Rollups Explained
Arbitrum’s core innovation lies in its optimistic rollup technology, which:
- Batches transactions off-chain
- Posts compressed data to Ethereum
- Assumes validity unless challenged (reducing on-chain verification frequency)
This approach increases Ethereum’s TPS from ~15 to 1,000+ transactions per second, making it ideal for DeFi, NFTs, and dApps.
Traditional Ethereum vs. Arbitrum
| Feature | Ethereum (Layer 1) | Arbitrum (Layer 2) |
|------------------|--------------------|--------------------|
| TPS | 15–30 | 1,000+ |
| Gas Fees | High | Low |
| Finality | Slower | Faster |
ARB Token: Governance & Staking
Key Details
- Token Type: ERC-20 governance token
- Total Supply: 10 billion ARB
- Circulating Supply: 1.275 billion (as of 2023 airdrop)
Uses of ARB
- Voting: DAO proposals for network upgrades
- Staking: Earn rewards via DEXs or CEXs like 👉 OKX Earn
- Store of Value: Holders benefit from ecosystem growth
Arbitrum’s Roadmap & Future
- Progressive Decentralization: Shift governance power to ARB holders.
- Layer 3 Solution (Orbit): Enable Rust/C++ smart contracts for broader developer access.
- DAO Expansion: 42.78% of ARB supply allocated to community treasury.
FAQ
1. How do I buy ARB tokens?
ARB is available on major exchanges like OKX, Binance, and Coinbase. Purchase with USD, USDT, or ETH.
2. What’s Arbitrum’s advantage over other Layer 2s?
It balances low fees, Ethereum-level security, and developer-friendly tools.
3. Can I stake ARB tokens?
Yes—stake via DEXs (e.g., Uniswap) or centralized platforms for up to 1% APY.
4. Who created Arbitrum?
Offchain Labs, founded by Princeton researchers Ed Felten, Steven Goldfeder, and Harry Kalodner.
5. Is ARB used for gas fees?
No. Gas fees on Arbitrum are paid in ETH, while ARB is solely for governance.
Arbitrum’s innovative scaling solutions and strong community governance position it as a top contender in the Layer 2 space. For real-time ARB price tracking, visit 👉 OKX’s live crypto charts.