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View ChartArbitrum is an Ethereum layer-two (L2) scaling solution. It uses optimistic rollups to improve the speed, scalability, and cost-efficiency of Ethereum. Arbitrum also benefits from Ethereum's security and compatibility. It also offers higher throughput and lower fees than Ethereum. This is made possible by moving most of the computation and storage load off-chain.
Arbitrum was founded by Ed Felten, formerly President Obama's deputy Chief Technology Officer, Steven Goldfeder (CEO) and Harry Kalodner (CTO). The three co-founders met at Princeton University. The developers behind Arbitrum, Offchain Labs, have announced a shift to a decentralized autonomous organization (DAO) structure—the Arbitrum DAO.
The ARB token is the native currency of the Arbitrum network and is used for governance purposes. Holders of ARB can vote on proposals impacting features, protocol upgrades, fund allocation and the election of a Security Council. The Security Council comprises 12 members who are elected by Arbitrum DAO participants and are responsible for addressing risks within the Arbitrum ecosystem.
With a maximum supply limit of 10 billion tokens, the ARB token—Arbitrum's native cryptocurrency—was issued as an ERC-20 token.
Following the distribution of ARB through an airdrop, the Arbitrum Foundation became the Arbitrum DAO (Decentralized Autonomous Organization).
To celebrate this achievement, a substantial airdrop was held, distributing 1.162 billion ARB tokens (11.62% of the total supply) to users actively engaged with the Arbitrum ecosystem. This included individuals who bridged funds and conducted transactions on the platform.
Additionally, the Arbitrum DAO established a system through which a 12-person Security Council could be democratically elected. This council is responsible for implementing emergency and non-emergency measures to mitigate different threats to the ecosystem.
An L2 smart contract mechanism controls the yearly inflation rate of the ARB token, which can be up to 2%. This inflation ensures the sustainability of the Arbitrum ecosystem by enabling the progressive issuance of new tokens, thereby encouraging participation in the network.
A decentralized autonomous organization (DAO) governs the Arbitrum ecosystem, giving ARB holders a say in any proposed modifications. Cross-chain interoperability will allow the platform to work with tokens and coins on different blockchains without any hitches, expanding its potential user base. As developer tools and infrastructure evolve, building and deploying on Arbitrum is expected to become even easier, significantly expanding its reach.
Arbitrum's scalability and low gas fees could pave the way for more complex and decentralized apps on the Ethereum network, potentially leading to a wider range of use cases and adoption, thereby impacting the ecosystem. Simply being part of the market could encourage other L2s to improve their services and innovate.
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Trade| Metric | Arbitrum (ARB) | Optimism (OP) | Polygon (POL) |
|---|---|---|---|
| Architecture | Optimistic Rollup (Nitro) | Optimistic Rollup (OP Stack) | ZK-EVM / Multi-Chain (Polygon 2.0) |
| Validation | Multi-round Fraud Proofs | Single/Multi-round Fraud Proofs (Superchain) | Zero-Knowledge Proof (ZK-Proof) |
| Languages | Solidity, Rust, C, C++ (Stylus) | Solidity (EVM Compatible) | Solidity (ZK-EVM Compatible) |
| Scaling Method | Arbitrum Orbit (L3 Chains) | OP Stack (Superchain) | CDK (Chain Development Kit) |
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