What is Arbitrum (ARB)? Which Advantages Does It Offer?

Arbitrum is a Layer 2 scaling solution for the Ethereum blockchain network. It is faster, more secure and has lower transaction fees than Ethereum. The local cryptocurrency of the Arbitrum project is ARB. In this article, we will look for answers to questions such as what is Arbitrum (ARB), what does Arbitrum (ARB) do, what are the advantages of Arbitrum (ARB).

What is Arbitrum (ARB)? What Does It Do?

Arbitrum's logo

Arbitrum is a Layer-2 solution developed to further the capabilities of Ethereum smart contracts. Ethereum is a valuable cryptocurrency, and the growing demand for it poses scalability problems. This causes Ethereum to run slowly, slowing down transaction times and increasing transaction fees.

In addition to its advanced scalability features, Arbitrum offers users a similar approach to privacy with its security structure inherited from Ethereum. To emphasize its similarities with Ethereum, the Arbitrum network states that any Ethereum DApp can run on Arbitrum without code changes. Arbitrum is a powerful alternative to improve the user experience for those who do not want to wait for the scalability problems on the Ethereum side to be solved.

With the Arbitrum platform, developers can easily run the transactions they want to perform on the Ethereum side on a second layer. And in doing so, they’re doing it on Ethereum’s 1. They continue to benefit from layer security. This makes the whole process faster and cheaper, while taking advantage of Ethereum’s proven operating principles.

Which Advantages Does Arbitrum Offer?

Although Arbitrum is similar to Ethereum, what makes it different is that it offers advanced features over Ethereum. These advanced features of Arbitrum can be found just below under a few headings.


Working in conjunction with the Ethereum main chain, Arbitrum increases Ethereum’s transaction capacity. This makes transactions faster and more cost-effective.

Low transaction fees:

Transaction fees are kept low. Thus, users can take a profitable position in their transactions.

High-speed transaction confirmation in Arbitrum:

Transactions are approved fast. This avoids the problem of network congestion.

Supported smart contracts:

Arbitrum supports Ethereum’s smart contracts. This way, smart contract developers on Ethereum can work more comfortably on Arbitrum.

Easy to use in Arbitrum:

Many tools and libraries developed for Ethereum are compatible with Arbitrum. This makes it easier to work on Arbitrum and speeds up the development process.

Transaction security in Arbitrum:

Arbitrum maintains the security of the Ethereum network. Thus, those working on Arbitrum inherit Ethereum’s security structure.

How does Arbitrum work?

Arbitrum works with a technology called Optimistic Roll-Up. Thanks to this technology, Ethereum smart contracts enable data to flow between smart contracts on the Ethereum main chain and smart contracts on the Arbitrum second layer chain. This data flow is the source of the successful scaling on the Arbitrum side. Most of the processing is completed on the second layer and the results are recorded on the main chain. This is the basis for the high speed and efficiency in Arbitrum.

To summarize the working principle of Arbitrum;

  1. Arbitrum leverages a copy of the Ethereum blockchain and runs on its own private chain.
  2. By translating Ethereum addresses into Arbitrum addresses, users can make transactions on the Arbitrum network.
  3. The executed transactions are collected in the Arbitrum chain and wait to be verified for a period of time.
  4. After the end of the verification period, transactions are sent and processed on the Ethereum main chain using the Optimistic Roll-Up technique.
  5. As Arbitrum is a roll-up solution, transactions are aggregated on the Ethereum main chain as a backlog of transactions that require the approval of an online jury.
  6. The online jury uses a special algorithm to verify transactions.
  7. Users can use their assets on Ethereum if they prefer the Arbitrum chain to the Ethereum chain for their transactions.
  8. Ethereum assets sent to the Arbitrum chain can be sent back to the Ethereum chain after they have been used.
  9. Arbitrum runs a technology that helps solve scalability issues on the Ethereum chain and increases the use of decentralized applications.
  10. As a result, Arbitrum alleviates congestion on the Ethereum network, paving the way for fast transactions and low transaction fees.

Why is Arbitrum Different?

Although the Arbitrum project is designed to provide an easy-to-use platform for launching highly efficient and scalable Ethereum-compatible smart contracts, it is not the first and only platform in its field. But to understand the significance of Arbitrum, we need to look at what sets it apart from other projects.

Arbitrum Hosts High EVM Compatibility

Arbitrum is compatible with Ethereum Virtual Machine.

Arbitrum Presents Optimistic Roll-Up Technology

Transactions are optimistically verified and only resolved in the event of a dispute. This makes it possible to speed up transactions while maintaining security.

Arbitrum Can Operate in Two Directions

Two-way asset transfers can be made from Arbitrum to Ethereum or from Ethereum to Arbitrum.

Arbitrum Provides Ease of Integration

Transactions can be made by moving assets from the Ethereum chain to the Arbitrum chain, and then assets from the Arbitrum chain can be sent back to the Ethereum chain.

Arbitrum is Open Source

Anyone can contribute to the Arbitrum project and it can be developed collaboratively. This way the project can gain more qualifications and errors can be corrected faster.

Arbitrum has Rich Development Tools

Many of Ethereum’s existing tools and libraries can be used to develop on Arbitrum.

Arbitrum Requires Low Transaction Fees

Transactions processed on the sidechain lighten the load of the Ethereum chain. This reduces transaction fees.

Arbitrum Includes Advanced Ecosystem

Uniswap can interoperate with different Ethereum DApps and infrastructure projects such as DODO, Sushi and many others.

Who are the Founders of Arbitrum?

Ed Felten – Steven Goldfeder – Harryp Kalodner

Arbitrum was developed by Ed Felten, Steven Goldfeder and Harry Kalodner, founders of Offchain Labs, a United States-based company that works to provide solutions for scaling on the Ethereum blockchain.

Before the emergence of Ethereum, Ed Felten had begun extensive research on roll-up technology in 2014. After serving as Obama‘s Deputy CTO, Ed Felten returned to Princeton University and continued his research with Steven Goldfeder and Harry Kalodner, who were PhD students at the time. Arbitrum emerged thanks to this trio and ARB, the native cryptocurrency of this network, was launched on March 23, 2023 with an Airdrop event.

What Other Curiosities About Arbitrum?

To find out a little more about Arbitrum, it is useful to look at the answers to some of the following questions.

Is ARB a token? Or is it a coin?

Coin is a cryptocurrency created on its own blockchain. A token is a cryptocurrency that does not have its own blockchain and is created on an existing blockchain. ARB is a token that runs on the Ethereum blockchain in accordance with the ERC-20 standard.

What is the ARB token maximum supply?

The maximum supply of ARB tokens is 10,000,000,000,000.

Which blockchain is Arbitrum on?

Arbitrum is a sidechain protocol that supports smart contracts by running on the Ethereum network. The sidechain operates as a separate blockchain from the Ethereum network. It increases the capacity of the Ethereum network by enabling faster transaction times and lower fees.

Is Arbitrum token mining done?

On Arbitrum, participants can receive rewards by transmitting their transactions to the Arbitrum network and validating blocks of the Arbitrum network or contributing transaction fees. But the ARB token is a cryptocurrency that is not mined.

How to buy ARB tokens?

To buy ARB tokens, it is sufficient to create a membership on ICRYPEX. Once the membership process is complete, it’s fast, easy and secure to trade other cryptocurrencies including ARB tokens.

How to Become a Member of ICRYPEX?

After visiting www.icrypex.com from a browser, you can click on the “SUBSCRIBE” button at the top right of the page, fill in the required information and you can easily create your membership.

From mobile devices, primarily;
Android users can download our app by clicking here, Apple users by clicking here and HUAWEI users by clicking here. After logging in to the application, you can click on the menu icon at the top left, then click on “SUBSCRIBE” to fill in the required information and easily create your membership.