Arbitrum (ARB)

Arbitrum (ARB) is a Layer-2 blockchain built to make Ethereum faster and cheaper.
It helps users and developers avoid high gas fees by processing transactions off-chain, while still relying on Ethereum for security.

What is Arbitrum?

Arbitrum is a scaling solution for Ethereum that uses Optimistic Rollups — a method of bundling many transactions together and submitting them to Ethereum as one.

It was created by Offchain Labs and launched in 2021, quickly becoming the most popular Layer-2 network by total value locked (TVL).

Launch year: 2021
Technology: Optimistic Rollups
Token: ARB
Purpose: Lower fees and faster transactions for Ethereum users

How Does Arbitrum Work?

Instead of recording every transaction on Ethereum’s main chain, Arbitrum groups hundreds of them together off-chain.
Then it sends only a single proof back to Ethereum — this is how it reduces gas costs by up to 90% while keeping Ethereum-level security.

Transactions run off-chain (Layer-2)
Validators ensure correctness
Fraud proofs catch invalid transactions

This makes DeFi, NFTs, and dApps built on Arbitrum fast, cheap, and scalable.

Why Is Arbitrum Important?

Ethereum-compatible: any Ethereum app can migrate easily.
Cheaper transactions: users pay a fraction of mainnet fees.
Scalability: handles thousands of TPS (transactions per second).
Growing ecosystem: hundreds of DeFi and gaming apps run on Arbitrum.

Arbitrum Use Cases

DeFi trading: platforms like GMX and Camelot use Arbitrum for fast swaps.
NFT minting: cheaper minting and transfers than Ethereum mainnet.
Gaming dApps: low fees make it ideal for in-game economies.
DAO governance: ARB token holders vote on ecosystem upgrades.

Risks of Arbitrum ⚠️

Smart contract bugs: as a Layer-2, it depends on bridge security.
Centralization: sequencer currently controlled by Offchain Labs.
Competition: rivals like Optimism and zkSync offer similar scaling.
Dependency: ultimate security relies on Ethereum mainnet.

Lanzo Tip 🧠

Arbitrum is one of the strongest Layer-2s for Ethereum — but remember, bridges are risky. Always double-check URLs and start with small test transfers before moving big funds.