What is Arbitrum (ARB) Token?
Arbitrum (ARB) is a Layer-2 scalability solution for the Ethereum (ETH) blockchain network. Arbitrum is a roll-up technology that addresses the privacy and scalability issues that arise in Ethereum's smart contracts, giving users the benefit of lower transaction fees and less network congestion.
Today, there are thousands of decentralized applications and many smart contracts running on the Ethereum network, causing network congestion and scalability issues. Arbitrum solves these problems with its roll-up technology. It aggregates Ethereum transactions and executes them on a more scalable and cost-effective Layer-2 chain. These transactions are then sent in small packets to the Ethereum mainnet, where they are recorded on the blockchain.
Arbitrum provides developers with the convenience of executing unmodified Ethereum Virtual Machine (EVM) contracts and ETH transactions on Layer-2. This allows developers to create smart contracts faster and more cost-effectively by leveraging the security of Ethereum.
Founders and History of the Arbitrum Project
The Arbitrum project is developed by Offchain Labs. The founders of Offchain Labs are Ed Felten, Steven Goldfeder and Harry Kalodner. Ed Felten did extensive research on roll-up technology before the emergence of Ethereum and started this project. While working at Princeton University, Felten created Arbitrum with Steven Goldfeder and Harry Kalodner and founded Offchain Labs.
ARB Token Statistics and Distribution
The ARB token is Arbitrum's governance token and has a total supply of 10 billion ARBs. 11.62% of the total supply (1.162 billion tokens) was distributed to users through an airdrop. This airdrop caused quite a stir in the cryptocurrency community.
Arbitrum's Mechanism of Operation and Security
Arbitrum is based on optimistic roll-up technology. This technology enables communication between Ethereum smart contracts and those on the Arbitrum Layer-2 chain, making it possible to scale smart contracts on Ethereum. Arbitrum completes transactions on Layer-2 and saves the results on the Ethereum main chain.
This process can be completed more quickly as transactions are not executed on the Ethereum main chain. The basic idea of Arbitrum is that the Ethereum mainnet "optimistically assumes" that activities on Arbitrum are initially in accordance with the rules. In case of any violation, it can be challenged at Layer-1, i.e. on the Ethereum main network, thus ensuring security. This system is managed by validators on the network and aims to ensure secure transactions.
ARB Token and Governance
The ARB token is the cryptocurrency and governance token of the Arbitrum project. ARB token holders can vote on decisions regarding the future of the project through the Arbitrum DAO. The token has been distributed via airdrop since March 23, 2023 and is currently ranked among the top Layer-2 tokens.
Great Expectation
Arbitrum is a Layer-2 solution that enables secure, fast and cost-effective transactions on Ethereum. Providing developers with ease of use, Arbitrum offers the benefits of roll-up technology compatible with EVM. The ARB token is Arbitrum's governance token, allowing users to contribute to the future of the project. Arbitrum's optimistic roll-up technology provides a solution to scalability issues while maintaining the security of the Ethereum network.
