ETH on Arbitrum

ETH on the Arbitrum network represents Ethereum operating on a scalability infrastructure that enhances its capabilities. Arbitrum, a Layer 2 (L2) solution atop Ethereum’s main network (Layer 1 or L1), allows for the same functionalities such as deploying smart contracts and using decentralized applications (dApps), but with lower costs and faster transaction speeds.

Why Arbitrum? Ethereum is limited by its capacity to handle only about 20-40 transactions per second, leading to high fees and long wait times during peak usage. Arbitrum alleviates these issues by processing transactions off the main Ethereum chain while maintaining its security through a method called "optimistic execution." Transactions are assumed valid unless proven fraudulent, with disputes handled by Ethereum’s L1.

Benefits Arbitrum offers nearly seamless integration for Ethereum users and developers, supporting Ethereum wallets and tools while introducing the ability to develop high-performance smart contracts in languages like Rust and C++. It ensures Ethereum’s robust security model is preserved, providing a secure, faster, and cheaper environment for Ethereum transactions.

To use the Arbitrum network, users will need to have ETH available to pay for transaction fees. Since Arbitrum operates as a Layer 2 solution over the Ethereum mainnet, all transaction costs and fees associated with activities such as executing smart contracts or making transfers are paid in ETH. This ensures that users benefit from the lower fees and faster processing times of Arbitrum while still interacting with the robust Ethereum ecosystem.