Article Summary, Automatically Generated By AI
Here is the summary in HTML format:
About Arbitrum
Key Points
- Arbitrum is an Ethereum layer-two (L2) scaling solution using optimistic rollups.
- Native token is ARB, used for governance.
- ARB holders can vote on proposals, affecting features, protocol upgrades, funds allocation, and election of a Security Council.
- Ambitious roadmap for 2023, including launching Orbit, enabling developers to deploy programs in popular languages, expanding validators, and moving to layer two with Arbitrum One.
- Airdrop of ARB to early users and DAOs, with 12.75% of total supply distributed.
Founders
<ul
Unlocking the Power of Arbitrum: A Next-Generation Scaling Solution
Introducing Arbitrum (ARB): A Revolutionary Layer 2 Scaling Solution
Arbitrum is an Ethereum layer-two (L2) scaling solution that leverages optimistic rollups to significantly enhance speed, scalability, and cost-efficiency on the Ethereum network. By harnessing the security and compatibility of Ethereum, Arbitrum offers a superior experience, boasting higher throughput and lower fees compared to its predecessor, made possible by offloading the majority of computational and storage burdens off the chain.
Arbitrum’s native cryptocurrency, ARB, serves as the governance token, empowering holders to shape the platform’s trajectory. In a significant development, Offchain Labs, the visionary team behind Arbitrum, has unveiled a paradigm shift towards a decentralized autonomous organization (DAO) structure, aptly dubbed the Arbitrum DAO. This evolution enables ARB holders to exercise their voting rights on proposals that influence key aspects, including feature enhancements, protocol upgrades, fund allocation, and the election of a Security Council.
Arbitrum has unveiled an ambitious roadmap for 2023, featuring a slew of innovative developments, including: the launch of Orbit, a cutting-edge layer-three solution; the integration of Stylus, enabling developers to deploy programs written in popular programming languages such as Rust, C++, and more; a significant expansion of its validator set to incorporate a diverse range of independent institutional validators; and a pivotal transition of its protocol to layer two with Arbitrum One.
On March 16, 2023, Arbitrum unveiled its highly anticipated airdrop of ARB, a milestone event that has been eagerly awaited by the community. This token distribution will benefit early adopters and decentralized autonomous organizations (DAOs) that have been actively building on the Arbitrum platform, with a substantial 12.75% of the total supply allocated for distribution. The recipients of this airdrop were determined based on a point-based system, which assessed their level of engagement with the Arbitrum network up until the cutoff date of March 1, 2023. The token generation event is slated to take place on March 23, 2023.
The Visionaries Behind Arbitrum: Meet the Founders
Arbitrum, a cutting-edge technology, is the brainchild of Offchain Labs, a New York-based development company. Founded by a trio of esteemed experts, Ed Felten, Steven Goldfeder, and Harry Kalodner, who bring with them a wealth of experience in computer science, cryptography, and blockchain, garnered from their research tenure at Princeton University.
Ed Felten, a renowned computer science professor at Princeton University, formerly served as Deputy Chief Technology Officer under President Obama. He is also the co-founder and Chief Scientist of Offchain Labs, where he continues to drive innovation.
Steven Goldfeder, a distinguished computer scientist and entrepreneur, holds a Ph.D. from the esteemed Princeton University. Notably, he is also the co-founder and CEO of Offchain Labs.
Harry Kalodner, a distinguished computer scientist and Ph.D. candidate at the esteemed Princeton University, also serves as the co-founder and Chief Technology Officer of Offchain Labs.
In 2021, Offchain Labs secured a substantial $120 million investment in its Series B funding round, led by Lightspeed Venture Partners, thereby valuing the company at a staggering $1.2 billion. The impressive roster of investors also includes esteemed entities such as Polychain Capital, Pantera Capital, and notable individual investors like Mark Cuban, among others.
Unveiling the Unparalleled Attributes of Arbitrum
Arbitrum leverages optimistic rollups to differentiate itself from other Ethereum scaling solutions, boasting several key advantages over alternative optimistic rollup solutions, including:
Seamless Compatibility: Arbitrum offers unhindered support for unmodified EVM contracts and transactions, enabling any existing Ethereum decentralized application (DApp) to operate on Arbitrum without requiring any code modifications.
Scalability: Arbitrum boasts an impressive capacity to process thousands of transactions per second, accompanied by minimal fees and swift finality, all while upholding the robust security assurances inherent to Ethereum.
Flexibility: Arbitrum empowers developers to deploy programs crafted in a variety of popular programming languages, including Rust, C++, and others, leveraging Stylus, its forthcoming EVM+ equivalence feature.
Decentralization: Arbitrum eschews reliance on a centralized operator or sequencer to orchestrate transactions, instead leveraging a decentralized network of validators who stake ARB tokens and reap fees for safeguarding the network.
Arbitrum boasts a thriving ecosystem comprising a diverse array of decentralized applications, wallets, tools, and partners, solidifying its position as a premier scaling solution for Ethereum.
A diverse array of protocols is available on the network, including: GMX (GMX), Treasure (MAGIC), Camelot (GRAIL), Radiant Capital (RDNT), Vela Exchange (VELA), ZyberSwap (ZYB), Dopex (DPX), PlutusDAO (PLS), TridentDAO (PSI), Jones DAO (JONES), and many more.
The Arbitrum ecosystem’s remarkable growth is aptly reflected in its total value locked (TVL) metric. According to DeFiLlama, Arbitrum’s TVL surged to a remarkable peak of $3.2 billion in November 2021, and currently stands at approximately $1.85 billion as of this writing, thereby solidifying its position as the Layer 2 ecosystem with the highest TVL.
What Is the Circulating Supply of Arbitrum (ARB) Coins?
ARB, the native governance token of Arbitrum, is set to debut on March 23rd, 2023, with an initial distribution of 12.75% of the total ARB token supply allocated to eligible recipients and decentralized autonomous organizations (DAOs).
The ARB token serves as the linchpin of decentralized governance within the Arbitrum ecosystem. By holding ARB tokens, users are empowered to participate in the governance of the Arbitrum network, exercising their voting rights on proposals that shape the future of both Arbitrum One and Arbitrum Nova chains. Furthermore, they have a say in the allocation of funds within the DAO treasury. The scope of governance proposals is vast, encompassing chain upgrades, adjustments to network parameters, the distribution of grants and bounties, the integration of novel features, and more.
Notably, ARB does not function as a gas fee token, unlike ETH on the Ethereum network. Instead, fees on Arbitrum are denominated in ETH or any other ERC-20 token supported by decentralized applications (DApps). This distinctive approach enables ARB holders to stake their tokens and earn fees for securing the network, rather than expending them to utilize Arbitrum’s services.
The total supply of ARB tokens is capped at 10 billion, with a deliberate allocation as follows: the Arbitrum DAO treasury holds 42.78% (4.278 billion), while Offchain Labs teams and advisors collectively retain 26.94% (2.694 billion). Investors have been allocated 17.53% (1.753 billion), with airdrops designated for users and DAOs accounting for 11.62% (1.162 billion) and 1.13% (113 million), respectively.
Arbitrum’s Security Mechanisms: A Comprehensive Overview
Arbitrum’s security is underpinned by the Ethereum network, which furnishes consensus and finality for Arbitrum transactions. In essence, Ethereum serves as a guarantor of the validity of the rollup’s off-chain computations and ensures the availability of the underlying data.
The utilization of optimistic rollups enables Arbitrum to execute transactions outside of the Ethereum network, aggregating multiple transactions into a single batch before submitting it to the mainnet. As the term “optimistic” implies, the off-chain transactions are presumed valid, with no proof of validity submitted. In the event of a dispute, a designated time frame is allotted after the rollup is submitted, during which anyone can contest the transaction by presenting a fraud proof.
Where to Acquire Arbitrum (ARB): A Comprehensive Guide
ARB is listed on a multitude of prominent centralized exchanges, including Binance, Coinbase, KuCoin, Bybit, Kraken, and Bitfinex, among others. Additionally, it is available for trading on decentralized exchanges such as Uniswap V3 (Ethereum), Uniswap V3 (Arbitrum), and SushiSwap (Arbitrum).
Stay up-to-date with real-time ARB price movements at your fingertips with the CMC mobile app.
Associated Resources:
Delve into the world of Optimism (OP), a pioneering optimistic rollup solution built on the Ethereum network.
Discover the seamless process of integrating Arbitrum with Metamask, unlocking a world of decentralized possibilities.
Delve into our comprehensive Ultimate Guide to the Arbitrum Ecosystem, where you’ll uncover the intricacies of this innovative platform.
Delve into our comprehensive guide to the premier protocols ranked by Total Value Locked (TVL) on Arbitrum, a definitive resource for navigating this thriving ecosystem.
Stay ahead of the curve with the latest cryptocurrency news and expert trading insights, courtesy of CoinMarketCap Alexandria.