What Is Arbitrum (ARB)? A Beginner’s Guide to the Ethereum Scaling Coin
Arbitrum is a Layer 2 scaling solution that will make Ethereum faster and reduce its gas fees—without compromising security. With the demand for faster blockchain applications growing, Arbitrum has become one of the most utilized Layer 2 platforms in the crypto space.
What Does Arbitrum Do?
Ethereum is quick but occasionally slow and expensive at high usage. Arbitrum works by settling all transactions off-chain and only settling the final result on Ethereum, hence becoming lower-priced and quicker for users.
Key Features
Low Fees: Substantially lower than mainnet Ethereum
High Speed: Capable of handling thousands of transactions per second
EVM Compatible: Compatible with existing Ethereum smart contracts
Growing Ecosystem: Utilized extensively by DeFi and NFT platforms
Who Created Arbitrum?
Arbitrum was developed by Offchain Labs, a group of Princeton researchers and engineers focused on improving blockchain scalability without sacrificing decentralization.
Why Is Arbitrum Important?
As more use of Ethereum takes place, so does the need for scalability. Arbitrum allows developers to build faster apps, and users enjoy reduced fees and latency. It supports top DeFi protocols like Uniswap, Aave, and GMX and is still seeing massive adoption.
ARB Token and Governance
The ARB token powers the Arbitrum ecosystem and is used for governance. The token holders can vote on proposals and influence the direction of development of the project.
Arbitrum DAO
How to Get Arbitrum (ARB)
You can buy ARB on major exchanges such as Binance, Coinbase, and Kraken. It is also available on decentralized exchanges running on Arbitrum itself, including SushiSwap and Uniswap.
Final Thoughts
Arbitrum is not just a faster iteration of Ethereum—it’s a crucial part of its future. When more applications shift to Layer 2 to cut costs and improve performance, Arbitrum can play a leading role in the next generation of decentralized innovation.
