Have you ever wondered how to lower gas fees on Ethereum? You are not the only one, as many teams are working on solutions. One of them is Arbitrum, a layer 2 scaling solution that is growing in usage. So what is Arbitrum and the benefits of Arbitrum? Let’s find out by reading this article.
What is Arbitrum?
The Arbitrum network is a layer 2 feature developed by New York-based Offchain Labs to address the congestion the Ethereum network has been experiencing by improving the way smart contracts are verified. The platform leverages the security provided by the Ethereum mainnet, but allows smart contracts to run on a separate layer to reduce congestion within the network.
This technique is called "transaction aggregation" (explained in some detail by the developers here), and it consists of a batch of transactions and records that are validated on lower layers and then moved to layer 1 mainnet of — in this case, the Ethereum mainnet.
Arbitrum compensates with ETH nodes actively validating smart contracts powered by the Arbitrum chain (called aggregators), which are responsible for adding blocks to the first layer - the Ethereum mainnet.
How Is Arbitrum Structured?
Arbitrum relies on the Ethereum network for security and adoption. However, its own structure allows it to take over some storage and computing functions from the main network, providing a faster and more cost-effective solution.
Is Arbitrum secure?
Arbitrum is designed to speed up transactions and reduce costs without compromising security. The system has validators, and there is a mechanism to keep them honest: validators need to stake the ether cryptocurrency, and if they break the rules, they can lose their staked funds.
The Benefits of Arbitrum
High EVM compatibility
This technology is considered to be one of the most EVM-compatible rollup technologies. The project is compatible with EVM at the bytecode level, and any language, such as Solidity and Vyper, can be compiled to EVM.
This makes development easier because developers don't need to master a new language before building Arbitrum.
Low cost
As a layer 2 scaling solution for Ethereum, Arbitrum is not only designed to increase Ethereum transaction throughput. But at the same time, it also minimizes transaction costs. Thanks to this efficient aggregation technique, Arbitrum is able to keep costs to a minimum. Despite lower transaction costs, the project still provides sufficient incentives for validators.
Powerful developer tools
When building a layer 2 solution, the project team has taken a number of approaches to minimize bottlenecks. Therefore, they have made comprehensive developer documentation for Arbitrum, and developers can start using tools that already exist on Ethereum. Developers don't need to download anything specific to the project, such as plugins or compilers like Hardhat or Truffle.
Good ecosystem
The project has partnerships with various Ethereum DApps and infrastructure projects, including Uniswap, DODO, Sushiswap, and more.
I hope this article will help you to learn what is Arbitrum and the benefits of Arbitrum. If you see anything similar to "Arbitrum Tokens" being offered anywhere for trading, it's a scam. That's because Arbitrum One has no native token. Rollup transactions are paid in ETH, and Offchain Labs currently has no plans to customize Arbitrum tokens.
