Arbitrums

Arbitrum is a layer-two scaling solution for the Ethereum blockchain. Its primary goal is to increase Ethereum's transaction speed and reduce transaction costs by moving computation and state storage off the main Ethereum chain. Arbitrum One is its flagship optimistic rollup network. Optimistic rollups work by assuming that all transactions submitted to the network are valid by default. These transactions are then bundled together and posted to the Ethereum mainnet. A challenge period follows, during which any party can submit a fraud proof if they believe a transaction is invalid. If a fraud proof is successful, the invalid transaction is re-executed and the sequencer, the entity responsible for ordering transactions, is penalized. This optimistic approach significantly reduces the computational overhead on the main Ethereum chain. Arbitrum's architecture allows for smart contract compatibility with Ethereum's EVM (Ethereum Virtual Machine), making it relatively easy for developers to deploy existing Ethereum applications onto the Arbitrum network. This ease of migration has contributed to its growing adoption by decentralized applications (dApps) seeking lower fees and faster transaction finality. The Arbitrum ecosystem includes a native token, ARB, which is used for governance, allowing token holders to vote on proposals related to the protocol's development and future direction.