Arbitrum | Trading Non Stop

What is ARB?

Arbitrum (ARB) is Ethereum’s top Layer-2 scaling solution. It uses a technology called optimistic rollups to speed up transactions and lower costs, all while keeping Ethereum’s strong security intact.

Boosts Ethereum’s Capacity – Handles transactions off the main Ethereum chain to cut fees and reduce network congestion.
Community-Driven Governance – ARB token holders manage upgrades and funding through the Arbitrum DAO (Decentralized Autonomous Organization).
Growing Ecosystem – Supports over 1,000 decentralized apps (dApps), including major DeFi platforms like Uniswap and Aave.

Deep Dive

1. What Arbitrum Does and Why It Matters

Ethereum can get slow and expensive when many people use it at once. Arbitrum solves this by processing many transactions off-chain using optimistic rollups. These rollups bundle transactions and only check them on Ethereum if there’s a dispute. This approach cuts fees by about 90%, making decentralized apps more affordable and accessible. Because Arbitrum works seamlessly with Ethereum’s existing system (called the Ethereum Virtual Machine or EVM), developers can easily move their apps over without rewriting code, speeding up adoption.

2. How Arbitrum Works

Arbitrum uses several key technologies:

Nitro: A system that compresses transaction data, allowing faster and cheaper settlement on Ethereum.
Stylus: A tool that lets developers write smart contracts in popular programming languages like Rust and C++, giving more flexibility.
Orbit: A platform for creating Layer-3 blockchains, which are custom networks built on top of Arbitrum for specific apps.
The Fusaka upgrade in December 2025 improved how Arbitrum works with Ethereum and made transaction fees even lower.

3. ARB Token and Governance

There are 10 billion ARB tokens managed by the Arbitrum DAO, which oversees protocol updates, treasury funds (including a $14 million security fund approved in 2025), and appoints a Security Council. Token holders can vote directly or delegate their voting power. Inflation is limited to 2% per year, but any changes need DAO approval.

Conclusion

Arbitrum is a key player in making Ethereum faster and cheaper while keeping control decentralized. Its flexible technology and strong community support make it a favorite for DeFi and Web3 projects. As Ethereum continues to grow, the big question is whether Arbitrum can stay ahead of competitors like Optimism and zkSync.