Introduction to Arbitrum

Arbitrum is a suite of technologies designed to scale Ethereum, one of the most popular blockchain ecosystems. It allows users to perform the same activities they would on Ethereum — deploying smart contracts, using decentralized applications (dApps), and more — but with significantly lower costs and faster transaction speeds. Its flagship product, Arbitrum Rollup, is an Optimistic Rollup protocol that maintains Ethereum's high security standards.

Why Does Ethereum Need Scaling? Ethereum, though powerful and versatile, has inherent limitations. The network processes only about 20-40 transactions per second (TPS). When usage peaks, this capacity is insufficient, leading to competition among users for transaction inclusion and driving up fees. These constraints stem from Ethereum’s design principles. Every Ethereum node must process every transaction in the blockchain’s history to maintain consensus, which keeps the network decentralized and accessible. However, this approach limits Ethereum's transaction throughput.

How Arbitrum Rollup Enhances Ethereum Arbitrum Rollup alleviates these constraints by operating as a layer 2 (L2) solution built on top of Ethereum. Instead of requiring every Ethereum node to process all transactions, it implements an “optimistic execution” model. Transactions on Arbitrum are assumed to be valid unless proven otherwise. If a fraudulent activity occurs, Ethereum’s layer 1 (L1) can adjudicate disputes through a process that detects and proves fraud. This design ensures that Arbitrum inherits Ethereum’s robust security model.

All transaction data from Arbitrum Rollup is posted on Ethereum, meaning any interested party can verify activity and identify fraud. Validators play a key role in moving the state of the Arbitrum chain forward and resolving disputes. This trustless architecture ensures that as long as there is at least one honest validator, the network remains secure.

Benefits for Users and Developers Arbitrum is designed to feel familiar to Ethereum users and developers. Its high compatibility with Ethereum means users can interact with their favorite wallets and developers can use their existing tools and libraries. Most of the codebase is based on Geth, the most widely used Ethereum implementation, ensuring a seamless transition to the L2 experience.

In addition to lower fees and faster transactions, Arbitrum Rollup supports advanced features. The latest development in the Arbitrum stack, Stylus, enables developers to write high-performance smart contracts in languages like Rust and C++. Stylus preserves Ethereum compatibility while introducing powerful new functionalities.