Arbitrum

Arbitrum

What is Arbitrum
  • Layer 2 scaling solution for Ethereum using optimistic rollups (ORU)
  • Inherits Ethereum’s security as the base layer
  • Provides lower fees
What does it solve?
  • Defi should be accessible to everyone, not only the wealthy in crypto.
  • Gas fees are too expensive on Ethereum mainnet.
  • Arbitrum is able to solve this by making transactions faster and cheaper, while having the security of Ethereum.
Cons
  • Arbitrum is intending to be fully decentralized, but the team has a good control over the network for now (similar to Polygon and Optimism).
How is it different than Optimism and other L2s?
  • They prove fraudulent transactions differently. Arbitrum uses a model that narrows the scope of the dispute and potentially executes a few crucial instructions on layer 1 to see if the transaction is valid
  • Arbitrum runs a sequencer that’s responsible to ordering transactions as well and will have an approach for decentralized sequencers in he future.
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