Arbitrum has become a popular Ethereum Layer-2 scaling solution, providing faster, cheaper, and more scalable infrastructure for Ethereum-based dApps. It processes transactions off-chain using Optimistic Rollup technology, which are then recorded in batches on the Layer-1 Ethereum network.
Arbitrum aims to tackle Ethereum's scalability challenges. It offers a platform for dApp developers and users with lower transaction fees and higher throughput, all without compromising Ethereum's top-tier security. The Layer-2 Arbitrum network strives to make the Ethereum ecosystem more accessible and usable for everyone. It directly competes with Layer-1 "Ethereum killers" like Avalanche, BNB Chain, Solana, and other EVM-compatible chains.
Unlike these other Layer-1 competitors, developers can create custom dApps on Arbitrum using Solidity, the very same smart contract programming language used on Ethereum. This makes it incredibly convenient to port existing Ethereum-based dApps to the Arbitrum network, ensuring a seamless transition and allowing them to benefit from faster, cheaper transactions.
Looking ahead, Arbitrum outlined an ambitious roadmap for 2023. This included the announcement of its proprietary Layer 3 solution, Orbit, which aims to let developers deploy programs written in common programming languages. They also plan to expand the validator set to include more independent institutional validators and migrate protocols to Layer-2 on Arbitrum One.
The crucial question of whether Arbitrum would have its own token was finally answered in March 2023 with the release of Arbitrum's official token. ARB is the native token of the Arbitrum network and serves as the governance token for the Arbitrum DAO. ARB holders can participate in the decentralized governance mechanisms of both the Arbitrum One and Arbitrum Nova networks, making community-driven DAO governance for the L2 networks a reality.
