{"id":20533,"date":"2023-03-27T07:56:01","date_gmt":"2023-03-27T07:56:01","guid":{"rendered":"https:\/\/zebpay.com\/au\/?p=20533"},"modified":"2023-03-27T07:56:20","modified_gmt":"2023-03-27T07:56:20","slug":"what-is-arbitrum","status":"publish","type":"post","link":"https:\/\/zebpay.com\/au\/blog\/what-is-arbitrum","title":{"rendered":"What Is Arbitrum?: Everything You Need To Know"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-arbitrum\/#What_is_Arbitrum\" title=\"What is Arbitrum?\">What is Arbitrum?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-arbitrum\/#How_Does_Arbitrum_Work\" title=\"How Does Arbitrum Work?\">How Does Arbitrum Work?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-arbitrum\/#How_do_Optimistic_Roll-Ups_Work\" title=\"How do Optimistic Roll-Ups Work?\">How do Optimistic Roll-Ups Work?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-arbitrum\/#Is_Arbitrum_a_good_investment\" title=\"Is Arbitrum a good investment?\">Is Arbitrum a good investment?<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>The Ethereum blockchain is one of the most prominent players in the blockchain industry for smart contract development. However, it is plagued with its own set of challenges-high gas fees and network congestion being some of them. This is where layer-2 scaling solutions like Arbitrum come into the picture.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Arbitrum\"><\/span>What is Arbitrum?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Arbitrum is a new layer-2 scaling solution for the Ethereum blockchain developed by a new york based company known as Off-chain labs. Layer-2 scaling solutions are networks which sit on top of <a href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-layer-1-blockchain\" target=\"_blank\" rel=\"noreferrer noopener\">layer 1 blockchains<\/a> to provide cheap and fast transactions. They reduce the congestion on the main blockchain by validating transactions separately and integrating them into the main chain.\u00a0\u00a0<\/p>\n\n\n\n<p>After its mainnet launch last year, Arbitrum\u2019s scaling solution has seen a lot of success. As a result of this, several developers have used Arbitrum\u2019s solutions to host their <a href=\"https:\/\/zebpay.com\/au\/blog\/everything-you-need-to-know-about-dapps\" target=\"_blank\" rel=\"noreferrer noopener\">dApps<\/a>.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_Arbitrum_Work\"><\/span>How Does Arbitrum Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Arbitrum is reliable, affordable and super fast. While the Ethereum blockchain clocks 14 transactions per second, Arbitrum zooms ahead with close to 40,000 transactions per second. While transactions on Ethereum might cost several dollars, transactions on Arbitrum just cost a few cents.&nbsp;<\/p>\n\n\n\n<p>Moreover, Arbitrum also supports integration with <a href=\"https:\/\/zebpay.com\/au\/blog\/everything-you-need-to-know-about-dapps\" target=\"_blank\" rel=\"noreferrer noopener\">Ethereum Virtual Machine<\/a> (EVM) making it easy for developers.\u00a0<\/p>\n\n\n\n<p>Arbitrum processes Ethereum transactions through what is known as optimistic roll-ups. These transactions are settled on a side chain before being fed to the main Ethereum blockchain through the Arbitrum bridge.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_do_Optimistic_Roll-Ups_Work\"><\/span>How do Optimistic Roll-Ups Work?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A roll-up essentially is a way to batch a bunch of transactions together into a single transaction. This essentially means that when a bunch of transactions are verified together, they are all verified parallelly, thereby reducing the waiting time and cost.&nbsp;<\/p>\n\n\n\n<p>Optimistic roll-ups assume that the transactions which are part of the bunch are valid. In case of any fraudulent activity, there is a dispute resolution mechanism.<\/p>\n\n\n\n<p>Read more: <a href=\"https:\/\/zebpay.com\/au\/blog\/what-are-zk-rollups\" target=\"_blank\" rel=\"noreferrer noopener\">What Are ZK Rollups<\/a><\/p>\n\n\n\n<p>In the case of Arbitrum, the batches of transactions are rolled up on its proprietary sidechain and fed back to the Ethereum blockchain at regular intervals.&nbsp;<\/p>\n\n\n\n<p>These validated transactions are vetted by all the validators on the Arbitrum network through what is called an \u201cAnytrustGuarantee\u201d. Each validator is supposed to stake a certain amount of Ethereum to participate in the validation process. This mechanism will deter bad actors since validating fraudulent transactions will invite a penalty and can put the validator\u2019s staked ETH on the line.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_Arbitrum_a_good_investment\"><\/span>Is Arbitrum a good investment?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Arbitrum token (ARB) was launched on 23rd March 2023. As of now, there are very few technical indicators to time the market. However, its fundamentals look strong, given that it is backed by a team of competent experts. Moreover, Arbitrum\u2019s network also validates transactions at very high speeds making it a good choice for quick and cheap transactions.&nbsp;<\/p>\n\n\n\n<p>On the other hand, Ethereum\u2019s future scaling solutions which aim to improve speed and reduce costs can pose a threat to <a href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-layer-2-blockchain\" target=\"_blank\" rel=\"noreferrer noopener\">layer-2<\/a> scaling solutions. It is yet to be seen how Arbitrum\u2019s market dynamics will play out. Investors are always advised to research thoroughly regarding any asset in which they wish to invest.\u00a0<\/p>\n\n\n\n<p>You can now buy Arbitrum (ARB) on <a href=\"https:\/\/zebpay.com\/au\" target=\"_blank\" rel=\"noreferrer noopener\">ZebPay Australia<\/a>. Keep yourself updated with the latest crypto news on ZebPay blogs.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-text-color wp-element-button\" href=\"https:\/\/connect.zebpay.com\/account\/UserRegistration?returnUrl=%2FAccount%2FCampaignRegister&amp;_ga=2.191039724.776191397.1679889726-1461365362.1677751526\" target=\"_blank\" rel=\"noreferrer noopener\">Trade Arbitrum (ARB)<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Ethereum blockchain is one of the most prominent players in the blockchain industry for smart contract development. However, it is plagued with its own set of challenges-high gas fees and network congestion being some of them. This is where layer-2 scaling solutions like Arbitrum come into the picture.&nbsp; What is Arbitrum? Arbitrum is a [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":20532,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[14],"tags":[16],"class_list":["post-20533","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-crypto"],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/20533","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/comments?post=20533"}],"version-history":[{"count":2,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/20533\/revisions"}],"predecessor-version":[{"id":20535,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/20533\/revisions\/20535"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/media\/20532"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/media?parent=20533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/categories?post=20533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/tags?post=20533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}