Arbitrum — the best kept secret in crypto
Here’s what you need to know the Arbitrum ecosystem, its uses and developments so far.
It’s been 3 and a half months into 2022 and the cryptocurrency market has undergone a lot of ups and downs. Riding through a mostly bear market has been very frustrating for crypto and NFT enthusiasts. Traders and hodlers have been struggling to determine what the next step is that won’t lead to getting rekt and liquidated out of the market.
Despite all of these situations, there’s recently been an uptrend to the market as coins are pumping while underground growing projects and ecosystems are starting to gain popularity in the cryptocurrency space. One of these projects is the Arbitrum ecosystem.
What is Arbitrum?
Arbitrum is an Ethereum scaling solution created by Offchain Labs to help users and developers lower the prices and latency of decentralized apps (dApps). One of its primary design goals is to make the Ethereum blockchain more scalable and adaptable.
This is due to the fact that it is built on top of Layer 1 (the main Ethereum network) and retains Ethereum’s security, reducing network workload and congestion, which has become more noticeable with the rise of decentralized finance, smart contract-based yield farming applications, and decentralized exchanges.
Smart contracts take longer and are more complicated to process than simply sending cryptocurrency between wallets. This is because the network must perform more computations, which in turn will take more gas (network fees) to process. In comparison to the native Ethereum blockchain, Arbitrum allows users to engage and deploy smart contracts without having to invest a lot of money.
Why use Arbitrum?
- Minimal Transaction Fees: Arbitrum claims to be the industry’s most optimistic rollup, with prices that are minimal when compared to Ethereum’s native gas fees, claiming to lower fees by more than 50x.
- Fast Transactions: As it is a layer-2 scaling solution, Arbitrum relies on speedy transactions on its network and enables users to undergo these transactions easily.
- Reliable ecosystem: Arbitrum has managed to develop and integrate with leading DApps. This project has established partnerships with Uniswap, DODO, Sushiswap, and other Ethereum DApps and infrastructure initiatives.
Emerging developments
One of the main developments on the Arbitrum network is NFT. NFTs on Arbitrum have been gaining a lot of buzz over the past few months leading the charge among L2 projects in terms of volume traded in that span as well.
It is worth mentioning TreasureDAO who are the frontrunners and leading developers in the NFT scene on the ecosystem — building a strong community and following and also owning Treasure Marketplace has been one of their many hallmarks so far.
It is also worth noting that these numbers will continue to grow as more NFT projects are been launched as well as new users being exposed to Arbitrum. This has really helped bolster the ecosystem’s use compared to other L2 projects and will likely keep it up there for a while.
In other aspects of development on the ecosystem, Arbitrum Nitro was recently released on testnet, with a fully functional production implementation. Nitro is perhaps the most sophisticated rollup stack ever created, with greatly increased throughput and significantly reduced fees. Additional development on the mainnet launch should be on the way!
Wen token?
Arbitrum in itself does not have a native token as of yet, although tokens are been created for different use cases on various platforms built on the Arbitrum ecosystem such as $Magic on Treasure. It is speculated that they do look to implement a native token for the chain but concrete news has not yet come out on this.
In conclusion, Arbitrum packs a lot of potential with DeFi, gaming, NFT and a plethora of new developments taking place constantly. As these products continue to thrive, Arbitrum grows both in use and volume and maybe eventually, the world will know this secret of ours.
The article was co-written by CDV Hub and Timeless Thoughts
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