More Than Just An Airdrop? Arbitrum
Arbitrum is a Layer-2 scaling solution for the Ethereum blockchain that promises substantially faster transaction speeds, lower gas fees, and greater scalability. Recently, the network completed the first phase of its mainnet launch. Marking the beginning of its partner-focused decentralization roadmap.
However, Arbitrum represents much more than a quick fix for scaling issues. Unlike most other Layer-2 solutions that use variations of plasma, rollups, or sidechains, Arbitrum implements unique features that lend themselves to what can only be described as a resilient DeFi fortress.
One of these is a special feature called “Fraud Proofs,” which can detect and prevent all forms of fraudulent activity on the network. By utilizing a system of rollup chains, a series of VM-exec programs, and Ethereum contracts, Arbitrum can detect any fraudulent activity by cross-checking the inputs and outputs of the transactions.
Arbitrum’s basic unit of work is the “sequence,” which consists of a series of transactions that can be executed collectively. To ensure that no fraudulent activity is taking place, each sequence is checked for correctness by a Fraud Proof. This enables Arbitrum to detect and revert any fraudulent activity in real-time.
Another critical feature of Arbitrum is its “Optimistic Rollup” technology, which can produce security. Fast and cheap transactions while maintaining Ethereum’s decentralization. This accomplishes three vital goals:
- First, it enables the creation of a scalable DeFi ecosystem that is fully immune to censorship or fraud.
- Second, it promotes the development of a new class of decentralized applications that are both scalable and cheap.
- Finally, it enhances liquidity by providing a cheap and fast way to transfer funds between different applications.
Arbitrum is taking steps to become a hub for decentralized derivatives trading and DeFi activity in the Layer 2 space.
Arbitrum represents a unique and highly advanced Layer-2 scaling solution beyond transaction speed and scalability. Its sophisticated technology provides a secure platform that promotes innovation and creates a new class of applications. With its unique features and capabilities, Arbitrum is well on its way to becoming a resilient DeFi fortress that can withstand even the most severe attacks.