Arbitrum

Arbitrum is a Layer-2 (L2) scaling solution for the Ethereum blockchain, designed to enhance the speed, scalability, and cost-efficiency of Ethereum-based decentralized applications (dApps). It utilizes a technology called "optimistic rollups" to achieve these improvements. Arbitrum benefits from the security and compatibility of Ethereum, while offering higher throughput and lower fees. This is possible by moving the majority of the computation and storage load off the Ethereum mainnet and onto the Arbitrum network. Arbitrum's native token, ARB, is used for governance, allowing token holders to vote on proposals that affect the features, protocol upgrades, fund allocation, and the election of a Security Council. The Arbitrum project was developed by Offchain Labs, a New York-based company founded by computer science experts Ed Felten, Steven Goldfeder, and Harry Kalodner. In 2021, Offchain Labs announced a $120 million Series B funding round, valuing the company at $1.2 billion. One of the key features that sets Arbitrum apart is its compatibility with unmodified Ethereum Virtual Machine (EVM) contracts and transactions. This means that existing Ethereum dApps can be deployed on Arbitrum without any code changes, making the transition seamless for developers. Additionally, Arbitrum allows developers to write programs in popular programming languages like Rust and C++, using its Stylus EVM+ equivalence feature.