Interpretation of Ethereum Layer 2 Project Arbitrum

Arbitrum is an Ethereum scaling solution based on Optimistic Rollup technology, developed by the Offchain Labs team. It improves transaction speed and reduces Gas fees by submitting batches of transactions to the Ethereum mainnet through off-chain computation and data compression.

Technical Features

• Adopting a multi-round fraud proof interaction mechanism to reduce the Gas consumption of a single challenge.
• Stronger compatibility with EVM, lower project migration costs.
• Nitro upgrade improved network speed and transaction costs
• The Stylus programming environment supports development in multiple languages.

Ecological Development

• TVL reached $3.85 billion, accounting for 55.97% share in L2
• Native DeFi projects GMX, Camelot, RDNT and others performed brilliantly
• The GameFi ecosystem is developing rapidly, with projects like Treasure DAO gaining attention.
• Released governance Token $ARB, total supply of 10 billion pieces.

Future Outlook

• Continue technical upgrades to improve TPS and reduce fees
• Push into decentralization, including sorters and validators
• Improve the Token economic model and governance mechanism
• Strengthen the construction of the native application ecosystem, especially in the social and NFT fields.

As a leading L2 solution, Arbitrum is expected to continue its growth trend in 2023 and is a noteworthy Ethereum scaling project.