Arbitrum is a Layer 2 scaling solution for Ethereum that uses optimistic rollups to increase transaction throughput and reduce fees while maintaining Ethereum's security.
Description: Arbitrum is a Layer 2 (L2) scaling protocol for Ethereum, developed by Offchain Labs. It employs optimistic rollup technology to batch transactions off-chain and submit proofs to Ethereum mainnet, enabling faster and cheaper transactions. Launched in August 2021, Arbitrum One is the mainnet, supporting Ethereum Virtual Machine (EVM) compatibility, allowing developers to deploy existing Ethereum dApps with minimal changes. The ARB token, introduced in March 2023, is the native governance token of Arbitrum DAO, allowing holders to vote on protocol upgrades and treasury management. Arbitrum has become one of the leading L2 solutions by total value locked (TVL) and daily transactions, playing a key role in Ethereum's scalability roadmap.
