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? How does Arbitrum work? In this article, we will introduce one of the most popular layer 2 scaling solutions for Ethereum. Let's see what Arbitrum is.
What is Arbitrum?
Arbitrum is a layer 2 solution that enhances the functionality of Ethereum smart contracts. It helps increase transaction speed and overall scalability, while also adding additional privacy features. While the world waits, a third solution has emerged: scaling solutions. These are software that sits on top of the base layer of the blockchain, in this case, Ethereum, to speed things up. One such scaling solution is Arbitrum, which has become a popular place for Ethereum users to complete transactions.
Arbitrum itself was created to address some of the shortcomings of current Ethereum-based smart contracts. As for the disadvantages, such as long transaction time and high execution cost. And Arbitrum also supports the Ethereum Virtual Machine (EVM), which means Ethereum DeFi developers can integrate their decentralized applications (dapps) with Arbitrum without any modifications.
How does Arbitrum work?
Arbitrum is processing Ethereum transactions via the Optimistic Rollup protocol. Ethereum smart contracts can be scaled by using layer 2 solutions built on top of them. The second layer handles most of the transaction processing and reports to Ethereum.
Additionally, most of the transaction processing will be done in the second layer, and Arbitrum will record the results in the main chain. The system can greatly improve its working speed and efficiency through this process.
So now you know what is Arbitrum and how Arbitrum works. Arbitrum is about to launch a feature called AnyTrust Chains, a sidechain that sacrifices trustlessness for lower fees and higher speed.
