Arbitrum is a layer-2 scaling solution for Ethereum, designed to improve the network's transaction speed and reduce fees while maintaining the security and decentralization of the Ethereum blockchain. Developed by Offchain Labs and launched in 2021, Arbitrum leverages a technology known as Optimistic Rollups to process transactions off-chain and bundle them before submitting proofs to the Ethereum mainnet. This allows for significantly higher throughput and lower costs compared to transacting directly on Ethereum, making it an attractive option for developers and users seeking efficient and scalable solutions.
Arbitrum supports the seamless deployment of Ethereum-compatible smart contracts, enabling developers to migrate existing dApps or build new ones with minimal changes. This compatibility has made it a popular choice for projects in decentralized finance (DeFi), gaming, and other sectors that require fast and cost-effective transactions. By enhancing the performance and affordability of Ethereum-based applications, Arbitrum plays a crucial role in fostering a more scalable and user-friendly blockchain ecosystem.