What Is Arbitrum?
Arbitrum is a Layer-2 blockchain designed to enhance Ethereum's scalability. As a rollup solution, it batches transactions off-chain, reducing congestion on Ethereum's mainnet. These transactions are later compressed into a single on-chain transaction, making Arbitrum faster, more scalable, and cost-efficient.
- Key Feature: Rollup technology optimizes Ethereum's throughput.
- Market Dominance: Holds a 55% share of Layer-2 Total Value Locked (TVL) as of March 2023.
- Founding Team: Co-founded by Ed Felten (former U.S. Deputy CTO), Steven Goldfeder (CEO), and Harry Kalodner (CTO), who met at Princeton University.
👉 Discover how Layer-2 solutions like Arbitrum revolutionize blockchain scalability.
Arbitrum’s Path to Decentralization
In March 2023, Arbitrum launched ARB, its governance token, marking a major step toward decentralized governance.
- Airdrop: 12.5% of ARB’s total supply was distributed to the community on March 23, 2023.
- Eligibility: Partnered with Nansen to identify qualifying users.
Arbitrum’s Core Philosophy
Arbitrum emphasizes security and scalability as its foundation:
- Mission: “Secure scaling for Ethereum.”
- Slogan: Reflects its focus on maintaining Ethereum’s security while improving efficiency.
ARB Token Utility
ARB serves as the governance token for Arbitrum’s decentralized ecosystem:
- On-Chain Voting: Proposals are executed automatically without intermediaries.
- Community-Driven: Ensures transparency and decentralization in decision-making.
FAQ
1. How does Arbitrum reduce Ethereum gas fees?
By processing transactions off-chain and submitting them as a single batch to Ethereum, Arbitrum significantly lowers costs.
2. What makes Arbitrum different from other Layer-2 solutions?
Its dominant market share in TVL and strong emphasis on security set it apart.
3. Can I still claim the ARB airdrop?
The initial airdrop occurred in March 2023; future distributions may follow community proposals.
4. Is Arbitrum fully decentralized?
With ARB’s launch, governance is now community-controlled, though technical upgrades may still involve the core team.
👉 Explore the future of Ethereum scaling with Arbitrum’s innovative technology.
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