Arbitrum is a Layer 2 blockchain solution built on top of Ethereum, developed by Offchain Labs. It is designed to improve scalability and reduce transaction costs while maintaining Ethereum’s security and compatibility.
Arbitrum uses Optimistic Rollups to execute transactions off-chain and then submit them in batches to the Ethereum mainnet. This approach allows applications to benefit from faster transactions and lower fees, while still relying on Ethereum for final settlement and security.
Because Arbitrum is compatible with Ethereum’s tooling and smart contracts, developers can deploy existing Ethereum applications on Arbitrum with minimal changes.
Network Tokens
Arbitrum has two core network tokens, each serving a specific purpose within the ecosystem:
ETH (Ether)
ETH is used to pay for gas fees on the Arbitrum network. To use ETH on Arbitrum, it must be bridged from Ethereum mainnet. Once bridged, ETH can be used for transactions and smart contract interactions on Arbitrum.
ARB
ARB is the governance token of the Arbitrum ecosystem. It is used for protocol governance, allowing token holders to participate in decisions related to network upgrades, treasury management, and ecosystem development. ARB is not used to pay for gas fees.
Learn more at arbitrum.io.