Arbitrum (ARB)

About Arbitrum (ARB)

ARB is the utility token of Arbitrum, an Ethereum layer-2 network. ARB functions as the governance token of the Arbitrum DAO, as holders may create and vote on governance proposals.

What is Arbitrum (ARB)?

Arbitrum (ARB) is an Ethereum layer-two scaling solution that strives to enhance the speed, scalability, and cost-efficiency of Ethereum. It utilizes optimistic rollups to aim for these improvements, moving most of the computation and storage load off-chain. This method seeks to provide higher throughput and lower fees compared to Ethereum, while still benefiting from Ethereum’s security and compatibility. The native token of Arbitrum is ARB, which is used for governance. The developers behind Arbitrum, Offchain Labs, have transitioned to a decentralized autonomous organization (DAO) structure, known as the Arbitrum DAO. ARB holders can vote on proposals that influence the features, protocol upgrades, funds allocation, and election of a Security Council.

How does Arbitrum (ARB) work?

Arbitrum (ARB) operates using optimistic rollups, a technology that aims to increase the scalability of Ethereum. It supports unmodified Ethereum Virtual Machine (EVM) contracts and transactions, meaning existing Ethereum decentralized applications (DApps) can run on Arbitrum without any code changes. Arbitrum aims to handle a high number of transactions per second with lower fees and faster finality, while maintaining the security guarantees of Ethereum. It also allows developers to deploy programs written in popular programming languages like Rust, C++, and more using Stylus, its upcoming EVM+ equivalence feature. Arbitrum does not rely on any centralized operator or sequencer to order transactions. Instead, it uses a decentralized network of validators who stake ARB tokens and are compensated for securing the network.

What are the potential use cases for Arbitrum (ARB)?

Arbitrum (ARB) aims to provide a scalable and cost-efficient platform for developers to build and deploy Ethereum-compatible DApps. This positions it as a potential solution for developers who aim to overcome the scalability and cost issues associated with Ethereum. Additionally, with its upcoming EVM+ equivalence feature, Stylus, Arbitrum seeks to enable developers to deploy programs written in popular programming languages like Rust, C++, and more. The ARB token, used for governance, allows holders to vote on proposals that affect the features, protocol upgrades, funds allocation, and election of a Security Council, thereby influencing the future direction of the Arbitrum ecosystem.

What is the history of Arbitrum (ARB)?

Arbitrum (ARB) was developed by Offchain Labs, a New York-based development company founded by Ed Felten, Steven Goldfeder, and Harry Kalodner, former Princeton University researchers with extensive experience in computer science, cryptography, and blockchain. In 2021, Offchain Labs raised funds in its latest Series B funding round, led by Lightspeed Venture Partners, valuing the company at a certain amount. The Arbitrum DAO was announced as a shift towards a decentralized governance structure, with the ARB token serving as the governance token. In March 2023, Arbitrum announced an airdrop of ARB tokens to early users and DAOs building on Arbitrum. The token generation event took place on March 23, 2023. Arbitrum has a roadmap for 2023.