Arbitrum | Trading Non Stop

What is ARB?

Arbitrum is a top solution built to improve Ethereum by making transactions faster and cheaper, while keeping Ethereum’s strong security.

Boosts Ethereum’s capacity using optimistic rollups, which handle most work off the main chain to speed things up.
Governed by ARB token holders through a decentralized organization (DAO) that manages upgrades and funds.
Growing ecosystem with new tools like Orbit (for creating Layer-3 blockchains) and Stylus (which lets developers write smart contracts in multiple programming languages).

Deep Dive

1. Purpose & Value

Ethereum can get slow and expensive when many people use it. Arbitrum fixes this by processing most transactions off the main Ethereum chain and only settling final proofs on Ethereum. This approach cuts transaction fees by about 95% and can handle up to 40,000 transactions per second, all while relying on Ethereum’s security. Because it works with Ethereum’s existing technology (EVM), developers can easily move their apps over with little extra work.

2. How It Works

Optimistic Rollups: Arbitrum groups transactions off-chain and posts summaries to Ethereum. There’s a 7-day window to challenge any suspicious activity, ensuring security.
Nitro Stack: An upgraded system that supports more features and speeds up transaction finalization.
Orbit: A tool that lets developers build custom Layer-3 blockchains on top of Arbitrum for specific uses like gaming or real-world assets.
Stylus: Allows developers to write smart contracts not just in Solidity (Ethereum’s main language) but also in Rust, C++, and others, making it easier for more programmers to build on Arbitrum.

3. Token and Governance

The ARB token is used for voting on decisions but doesn’t have other direct uses. There will only ever be 10 billion ARB tokens.
The Arbitrum DAO manages upgrades, controls a treasury with over $1.3 billion (as of 2025), and appoints a Security Council to handle emergencies.
To pass proposals, a minimum number of votes is required: 5% of ARB holders for big changes and 3% for spending treasury funds. Voting can be delegated to trusted representatives.

4. Ecosystem and Applications

Arbitrum supports over 900 decentralized apps (dApps), including major DeFi platforms like Uniswap and GMX. It also enables new use cases such as:

Real-World Assets (RWAs): For example, Robinhood offers tokenized U.S. stocks and ETFs on Arbitrum Nova.
Gaming: Specialized chains like Xai focus on creating and managing in-game assets on-chain.
Institutional Use: Big financial firms like BlackRock, Franklin Templeton, and WisdomTree use Arbitrum for tokenized treasury products.

Conclusion

Arbitrum is a key player in making Ethereum scalable by offering low fees, compatibility with existing Ethereum apps, and a vibrant developer community. Its decentralized governance and flexible design (with tools like Orbit) make it a strong platform for both decentralized projects and traditional institutions.

Will Arbitrum’s plan to combine rollups with zero-knowledge proofs help it lead the way in tokenizing real-world assets?