Question

what is Arbitrum

Answer 1

Arbitrum (ARB) is an Ethereum layer-two (L2) scaling solution that aims to enhance speed, scalability, and cost-efficiency on the Ethereum network. Here are some key details about Arbitrum:

1. Optimistic Rollups:

   • Arbitrum utilizes optimistic rollups, a technique that moves most of the computation and storage load off-chain.
   • By doing so, it achieves higher throughput and lower fees compared to the Ethereum mainnet.

2. Native Token (ARB):

   • The native token of Arbitrum is called ARB.
   • ARB serves as a governance token, allowing holders to vote on proposals related to features, protocol upgrades, fund allocation, and the election of a Security Council.

3. Decentralized Autonomous Organization (DAO):

   • Offchain Labs, the developers behind Arbitrum, transitioned to a decentralized autonomous organization (DAO) structure—the Arbitrum DAO.
   • ARB holders participate in governance decisions within the DAO.

4. Roadmap for 2023:

   • Arbitrum has an ambitious roadmap for 2023, including:
     • Launching its own layer-three solution called Orbit.
     • Enabling developers to deploy programs written in popular languages like Rust and C++ using Stylus.
     • Expanding its validator set to include more independent institutional validators.
     • Moving its protocol to layer two with Arbitrum One.

5. Airdrop:

   • On March 16, 2023, Arbitrum announced a highly anticipated airdrop of ARB.
   • Early users and DAOs building on Arbitrum received ARB tokens based on their interaction with the network until March 1, 2023.
   • The token generation event took place on March 23, 2023.

6. Founders:

   • Arbitrum is developed by Offchain Labs, a New York-based company founded by:
     • Ed Felten: Computer science professor at Princeton and former Deputy CTO under President Obama.
     • Steven Goldfeder: Computer scientist and entrepreneur.
     • Harry Kalodner: Computer scientist and Ph.D. candidate at Princeton.

7. Investment and Valuation:

   • In 2021, Offchain Labs raised $120 million in its Series B funding, led by Lightspeed Venture Partners.
   • Other investors include Polychain Capital, Pantera Capital, and Mark Cuban12.

Arbitrum’s focus on scalability and compatibility with Ethereum makes it an interesting project in the crypto space!  For real-time price information, you can check CoinGecko3.