ARB LogoArbitrum ARB

Current Price

$ 0.765125

24 hour change: -4.62%

24 hour high: $0.81

24 hour low: $0.75

24 hour volume: $216,203,754

Rank 39
Circulating Supply: 3,231,588,116
Total Supply: 10,000,000,000
Market Cap: $2,489,108,441
Diluted Market Cap: $7,702,430,979
All Time High $2.39
All Time High Date 12 Jan 2024
All Time Low $0.74
All Time Low Date 11 Sep 2023
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ARB Top Markets

Here are some of the most actively traded Arbitrum pairs across various cryptocurrency markets, excluding data from Coinbase and Kraken:

Arbitrum Markets
#SourcePairVolumePriceChangeUpdated

These trading pairs represent the popular markets where ARB is actively traded against other cryptocurrencies or fiat currencies. By exploring these trading pairs on different exchanges, you can engage in ARB trading and analyze price movements in the broader cryptocurrency ecosystem.

Arbitrum Network: A Detailed Overview

In the realm of Ethereum scalability solutions, one platform that stands out is the Arbitrum network developed by Offchain Labs. This Layer 2 solution focuses on reducing Ethereum’s computational load and facilitating faster, cheaper transactions. But what is Arbitrum and how does it achieve these benefits?

What is Arbitrum?

Arbitrum is a Layer 2 solution for Ethereum that aims to increase the blockchain’s speed, scalability, and cost-efficiency. It does so by shifting most computations off-chain, drastically reducing the amount of data that needs to be processed on the Ethereum blockchain itself. Despite these off-chain computations, Arbitrum does not compromise on the security provided by Ethereum’s decentralized, consensus-driven model.

How Arbitrum Works

At its core, Arbitrum employs a unique system known as Arbitrum Virtual Machine (AVM). An AVM is essentially a Decentralized application (dApp) that’s off-chain, holding its current state and code. It’s designed to interact with a specified set of validators.

Validators in Arbitrum submit assertions about the new state of a machine (post-computation), which includes the machine’s hash, its Ethereum balance, and the log of upcoming messages it has generated. These assertions are posted to the Ethereum blockchain, but crucially, most of the computation and state storage happens off-chain.

Arbitrum uses an “any-trust” model, meaning that as long as any single validator is acting honestly, the system will function correctly. In case of disagreements between validators, any validator can challenge the correctness of an assertion. If a dispute arises, the Arbitrum protocol provides an efficient, on-chain adjudication protocol where dishonest validators are penalized and honest ones are rewarded.

Scalability

By taking computations off-chain, Arbitrum massively improves the scalability of Ethereum. It reduces congestion and lowers transaction costs by minimizing the amount of data that needs to be stored on-chain. Only a small summary of each transaction (comprising of its inputs and outputs) is posted to the Ethereum blockchain, making the system vastly more efficient.

Security

Arbitrum achieves scalability without sacrificing the robust security of Ethereum. If a dispute arises about an off-chain computation, it’s resolved on-chain using Ethereum’s secure, consensus-driven architecture. As a result, Arbitrum remains as secure as the underlying Ethereum network.

Interoperability

Importantly, Arbitrum is fully compatible with existing Ethereum contracts and supports Ethereum’s infrastructure and tooling. Developers can port their existing Ethereum dApps over to Arbitrum without any code changes, making it a very attractive scalability solution.

Conclusion

Arbitrum represents a significant leap forward in blockchain scalability, offering a solution that balances computational efficiency, speed, and security. By enabling much of Ethereum’s processing to take place off-chain while retaining on-chain security and adjudication mechanisms, Arbitrum ushers in a new era of efficiency and utility for Ethereum-based applications.

Positioning of Arbitrum in the Current L2 Landscape

Arbitrum has been establishing itself as a competitive player in the Layer-2 (L2) scaling landscape due to several key attributes:

  • First Mover Advantage: Being an early entrant into the L2 space, Arbitrum gained significant traction and established a wide user base before many of its competitors.
  • Strong Community: A dedicated community of developers and users has fostered continuous innovation, promotion, and adoption of Arbitrum.
  • Technological Edge: The use of optimistic rollups, vetted by multiple security firms, provides a degree of trust in its capabilities. Additionally, its compatibility with Ethereum’s EVM allows for seamless deployment of existing Ethereum dApps.
  • Scalability: Arbitrum’s ability to handle high volumes of transactions off-chain, without compromising on security or performance, makes it appealing for users conducting high-volume transactions.

While Arbitrum has made substantial progress, there are also other notable Layer-2 scaling solutions:

  • Optimism: Sharing Arbitrum’s use of optimistic rollups, Optimism has differentiated itself through a distinct go-to-market strategy. Initially, it implemented a whitelisting approach, allowing it to work closely with a select number of projects to ensure the smooth operation of its technology.
  • ZkSync: ZkSync uses zk-rollups, a technology known for strong data availability and security. This technology compresses multiple operations into one single proof, greatly improving scalability. ZkSync 2.0 aims to combine the security of Ethereum with the speed and low fees of zk-rollups.
  • Loopring: Specializing in zk-rollups, Loopring has carved a niche within the DEX (Decentralized Exchange) and payment protocol domain, offering high throughput and low-cost trades and transfers. Its goal is to provide users with a non-custodial, highly performant trading and payment platform.
  • StarkWare: StarkWare stands out by using zk-STARKs. This technology offers high scalability and privacy without a trusted setup, often seen as a game-changing approach in the blockchain space. It is being utilized in areas such as DEXes, gaming, and more.
  • Polygon: Previously known as Matic, Polygon has adopted a multi-pronged approach. Its suite includes a PoS Ethereum sidechain, and plans for zk-rollups and optimistic rollups. This versatility allows it to cater to a wider array of use cases.
  • HerdSys: HerdSys or Hermez is another platform using zk-rollups, focused on scaling payments and token transfers on top of Ethereum.
  • xDai Stable Chain: xDai is a unique sidechain that has its native stablecoin (xDAI), providing fast and stable transactions. It’s particularly popular for smaller, everyday transactions due to the stability of its native token.

As the DeFi ecosystem continues to evolve, the competition in the L2 landscape is set to become more intense. All these platforms, including Arbitrum, are looking to establish themselves as the dominant Layer-2 scaling solution.

Comparing Ethereum, Arbitrum One, and Arbitrum Nova

In the ever-evolving blockchain world, different projects can opt for various platforms based on their specific needs and goals. Today, we’re comparing three prominent platforms: Ethereum, the well-established Layer 1 giant, and two rising Layer 2 solutions from Offchain Labs, Arbitrum One, and the yet-to-be-fully-released Arbitrum Nova.

Table 1: Feature Comparison

Feature Ethereum Arbitrum One Arbitrum Nova
Layer 1 2 2
Technology Proof-of-Work Optimistic rollups Optimistic rollups
Scalability (tx/s) 15 10,000 100,000
Security Excellent Good Good
Fees High Low Very Low
Latency High Low Very Low
Ecosystem Large Growing In Development
Adoption Widespread Increasing Not yet widespread

Ethereum, as the first smart contract platform, has enjoyed widespread adoption and boasts a large ecosystem. However, it’s currently facing scalability issues and high transaction fees, primarily due to network congestion. This has led to the emergence of Layer 2 solutions like Arbitrum One and Arbitrum Nova.

Arbitrum One has already gained significant traction by offering enhanced scalability and reduced transaction fees compared to Ethereum. Its growing ecosystem and increasing adoption make it an attractive choice for many projects.

Arbitrum Nova, though still under development, promises further improvements with superior scalability (up to 100,000 transactions per second) and even lower transaction fees.

Table 2: Pros and Cons

Platform Pros Cons
Ethereum – Widespread adoption <br/> – Large ecosystem – High fees due to network congestion <br/> – Current scalability constraints
Arbitrum One – Enhanced scalability <br/> – Lower fees than Ethereum – Ecosystem and adoption growing but smaller than Ethereum
Arbitrum Nova – Superior scalability (planned) <br/> – Lowest fees (planned) – Ecosystem and adoption still in development

Different projects may prefer different platforms based on these characteristics.

For instance, a well-established project that values network security and a large, diverse ecosystem might stick with Ethereum despite the higher costs.

Emerging projects that prioritize scalability and cost-efficiency might turn to Arbitrum One. It offers a compatible, scalable, and more affordable avenue for running smart contracts, making it an attractive alternative for many projects that started on Ethereum.

Projects at the cutting edge, willing to be early adopters and that require extreme scalability, may hold out for Arbitrum Nova. It promises even better performance and lower costs than Arbitrum One. However, these projects must be comfortable with a smaller initial ecosystem and the potential risks associated with newer technologies.

In conclusion, the best platform will depend on a project’s individual needs, risk tolerance, and strategic objectives. Ethereum, Arbitrum One, and Arbitrum Nova each offer distinct advantages that can cater to a broad array of projects in the diverse landscape of blockchain technology.

Tokenomics of Arbitrum’s ARB Token

The ARB token plays an integral role within the Arbitrum network, serving as a governance tool with the potential to influence the network’s development, decisions, and future trajectory.

Here’s a breakdown of the initial distribution of the total supply of 10 billion ARB tokens, each allocated to specific categories:

1. Team and Advisors: 2.694 billion ARB
Tokens allocated to the team and advisors undergo a four-year vesting period. The tokens unlock monthly between March 23, 2023, and March 23, 2027, following a one-year cliff from March 23, 2023, to March 23, 2024.

2. Investors: 1.753 billion ARB
Investors’ tokens follow the same vesting schedule as those for the team and advisors, ensuring alignment of long-term interests between all parties involved.

3. Arbitrum DAO Treasury: 4.278 billion ARB
A significant chunk of the total supply goes directly into the Arbitrum DAO treasury, which became fully unlocked on March 23, 2023. As a part of the decentralized governance model, the ARB token holders dictate the exact distribution schedule of this portion.

4. Airdrop to Users: 1.162 billion ARB
A considerable number of tokens were allocated for airdropping to users, providing incentives for community growth and engagement. These tokens became fully unlocked on March 23, 2023.

5. Airdrop to DAOs: 113 million ARB
This portion was airdropped to various Decentralized Autonomous Organizations (DAOs), further emphasizing the network’s commitment to decentralized governance.

The Role of ARB Token in Governance

The ARB token holds a crucial position in the governance structure of the Arbitrum network. Token holders can participate in the decision-making process, influencing the direction of the network. Through the DAO, they can propose, discuss, and vote on various aspects of the network, such as protocol upgrades, fee structures, and treasury management.

The Arbitrum network generates profit, part of which is held by the DAO. ARB token holders, as members of the DAO, thus indirectly have a stake in these profits. This model aligns the incentives of the network’s users and stakeholders, fostering a community-driven approach to development and growth. This way, the network stays adaptive and responsive to the needs of its users and the wider blockchain ecosystem.

Frequently Asked Questions about Arbitrum:

1. What is Arbitrum?
Arbitrum is a Layer-2 scaling solution for Ethereum developed by Offchain Labs that aims to solve the scalability and cost issues facing Ethereum.

2. How does Arbitrum work?
Arbitrum uses an innovative technology called Optimistic Rollup, which enables higher scalability by executing transactions off-chain while using the Ethereum network for security.

3. What is the ARB token?
The ARB token is the native governance token of the Arbitrum network.

4. How does Arbitrum improve transaction speed?
By executing transactions off-chain and only posting a summary to Ethereum, Arbitrum significantly reduces the amount of data stored on-chain, improving transaction speed.

5. How does Arbitrum reduce transaction costs?
Arbitrum’s off-chain execution reduces the load on the Ethereum network, which results in lower gas fees for transactions.

6. What is the difference between Arbitrum One and Arbitrum Nova?
Arbitrum One and Arbitrum Nova are both Layer-2 solutions by Offchain Labs. Nova is the latest version and offers better scalability and even lower transaction fees than Arbitrum One.

7. What are the benefits of the ARB token?
ARB token holders have the power to influence the development of the Arbitrum network. They can vote on various proposals such as protocol upgrades, fee structures, and treasury management.

8. Is Arbitrum compatible with Ethereum?
Yes, Arbitrum is fully compatible with Ethereum and supports all existing Ethereum tooling, languages, and standards.

9. Can all Ethereum smart contracts run on Arbitrum?
Yes, any contract that can be deployed on Ethereum can also be deployed on Arbitrum without any modification.

10. How is security maintained on the Arbitrum network?
Arbitrum uses the security of Ethereum’s base layer, while disputes about the off-chain computation are handled through a system of incentives and challenges.

11. What is the vesting schedule for the ARB tokens allocated to the team and investors?
Both team and investors’ tokens undergo a four-year vesting period, with monthly unlocks between March 23, 2023, and March 23, 2027.

12. How can I obtain ARB tokens?
ARB tokens can be obtained through participation in the network, purchasing from exchanges that list the token, or via the airdrops to users and DAOs.

13. What is the role of the Arbitrum DAO treasury?
The Arbitrum DAO treasury holds a large portion of ARB tokens that are used to fund network development, community initiatives, and other activities decided by the token holders.

14. What type of applications can be built on Arbitrum?
Any application that can be built on Ethereum can also be built on Arbitrum, including DeFi protocols, NFT platforms, DAOs, and more.

15. How is Arbitrum different from other Layer-2 solutions?
Arbitrum’s main differentiators are its compatibility with Ethereum, its use of Optimistic Rollups for scalability, and its decentralized governance model.

16. What does the future hold for Arbitrum?
Arbitrum aims to continue its development and expand its ecosystem of applications and users, with Arbitrum Nova expected to offer superior performance and lower fees.

17. Can I stake my ARB tokens?
Details regarding staking are dependent on the proposals approved by ARB token holders, as staking could be a mechanism proposed in future governance decisions.

18. Is Arbitrum fully decentralized?
Yes, Arbitrum aims to be a fully decentralized Layer-2 solution with governance held by ARB token holders.

19. How does the Arbitrum bridge work?
The Arbitrum bridge allows for secure and efficient transfer of assets between the Ethereum and Arbitrum networks.

20. Can I run a validator node on Arbitrum?
As a Layer-2 scaling solution, Arbitrum doesn’t have its own validator nodes. The Ethereum network provides security for Arbitrum.

21. How are disputes resolved on the Arbitrum network?
Disputes about off-chain computation are resolved through a system of incentives and challenges, ensuring accurate and honest computations.

22. Who are the developers behind Arbitrum?
Arbitrum is developed by Offchain Labs, a team of researchers and developers focused on bringing scalability to Ethereum.

23. What is the total supply of ARB tokens?
The total supply of ARB tokens is 10 billion.

24. What is an Optimistic Rollup?
Optimistic Rollup is a Layer-2 scaling solution that performs most computation off-chain and only posts a summary to the base layer, reducing cost and improving scalability.

25. Can I use my Ethereum wallet with Arbitrum?
Yes, Arbitrum supports all existing Ethereum wallets, allowing users to interact with Arbitrum using familiar tools.

26. What is the potential impact of Arbitrum on Ethereum’s scalability issues?
Arbitrum could dramatically improve Ethereum’s scalability by taking much of the computational load off the main Ethereum chain while maintaining its security properties.

27. How does Arbitrum interact with DeFi applications?
Arbitrum is fully compatible with Ethereum, allowing DeFi applications to be ported over without changes, and enabling faster and cheaper interactions for users.

28. How does the interaction between Arbitrum and Ethereum work?
Arbitrum communicates with Ethereum through a bridge contract, allowing for the transfer of assets and the posting of data proofs on the Ethereum main chain.

29. Can other chains besides Ethereum utilize Arbitrum?
As of my last update in September 2021, Arbitrum is focused on Ethereum, however, its rollup technology could theoretically be applied to other smart contract platforms.

30. How is data stored on Arbitrum?
Arbitrum only posts a minimal amount of data to Ethereum and most data (like contract storage) is stored off-chain, helping to reduce costs.

31. What happens if there is a dispute about a transaction on Arbitrum?
In the case of a dispute, any participant can challenge the computation and initiate an interactive protocol on Ethereum to ensure correctness.

32. What makes Arbitrum’s rollup technology “optimistic”?
It’s “optimistic” because it assumes that validators will act honestly. If they don’t, any observer can challenge them, leading to verification and potential reversal of any incorrect computations.

33. Is Arbitrum only useful for financial transactions?
No, any type of smart contract that runs on Ethereum can also run on Arbitrum, which can be useful for any application needing fast, low-cost transactions.

34. How is the governance conducted in the Arbitrum network?
The governance of the Arbitrum network is decentralized, carried out by the holders of the ARB token. They can vote on various network parameters and decisions.

35. Can other Layer-2 solutions be built on top of Arbitrum?
In theory, yes. However, as of my last update in September 2021, Arbitrum itself is a Layer-2 solution and is meant to operate on top of a base layer like Ethereum.

36. What is the token distribution model for ARB tokens?
The ARB tokens are distributed among various stakeholders including the team, investors, the Arbitrum DAO Treasury, and users via airdrops.

37. Can I mine ARB tokens?
No, ARB tokens are not mined. They are distributed as per the token allocation strategy defined by Offchain Labs and the Arbitrum DAO.

38. Is it possible to run my own Arbitrum chain?
Yes, the Arbitrum Rollup protocol is open-source, and it’s possible to run your own independent Arbitrum chain.