Arbitrum is a layer-2 scaling solution that aims to improve the speed and efficiency of Ethereum transactions while also reducing the high fees associated with using the platform.
Arbitrum mainnet was launched in 2021 by Offchain Labs, and it has quickly become one of the most popular blockchains in the market. At the beginning, Arbitrum achieves this by using Optimistic Rollups. In the later half of 2022, Arbitrum released Nova, a new chain using AnyTrust technology instead of Optimistic Rollups, and the old chain was renamed to Arbitrum One.
For two years of its operations, Arbitrum does not have its own native token to power the network like other layer-2 solutions, such as Polygon or Optimism. The blockchain plans to release its own token, ARB, which can be used to support DAO voting, towards the end of March 2023.
Arbitrum One uses Optimistic Rollups to process and bundle multiple transactions into a single batch, which was then settled on the Ethereum network. The bundles of transactions are assumed “innocent until proven guilty” by Ethereum, hence the name “Optimistic”.
With AnyTrust technology, Arbitrum Nova can be used for more cost-sensitive use cases. Nova first sends data to the committee, and only puts data on-chain if the committee, for some reasons, fails to do its job. Therefore, transactions on Nova will have significantly lower transaction fees compared to Arbitrum One, making it more suitable for projects with high transaction volume expectations.
ARB plans to have a total supply of 10,000,000,000. The amount of ARB in circulation is unknown.
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