What is Arbitrum Crypto (ARB)?

Arbitrum crypto is a layer-two (L2) scaling solution for Ethereum, aiming to enhance speed, scalability, and cost-efficiency on the Ethereum network. It achieves this through optimistic rollups, leveraging Ethereum's security and compatibility while significantly reducing fees and increasing throughput by moving most computation and storage off-chain.

Arbitrum's native token is called ARB, and it serves as the governance token for the platform. Offchain Labs, the development team behind Arbitrum crypto, has announced the transition to a decentralized autonomous organization (DAO) structure, known as the Arbitrum DAO. ARB holders have the ability to vote on proposals that impact features, protocol upgrades, fund allocation, and the election of a Security Council, granting them a say in the platform's development and governance decisions.

Who are the founders of Arbitrum Crypto?

Arbitrum crypto was developed by Offchain Labs, a New York-based development company founded by Ed Felten, Steven Goldfeder, and Harry Kalodner. All three founders have extensive backgrounds in computer science, cryptography, and blockchain, with prior research experience at Princeton University.

Ed Felten, who currently serves as a computer science professor at Princeton, has also held the position of Deputy Chief Technology Officer under President Obama. He is one of the co-founders and currently holds the role of Chief Scientist at Offchain Labs.

Steven Goldfeder, another co-founder, is a computer scientist and entrepreneur who obtained his Ph.D. from Princeton. He leads the company as its CEO.

Harry Kalodner, the third co-founder, is a computer scientist and Ph.D. candidate at Princeton, contributing to the team's technical expertise as the Chief Technology Officer of Offchain Labs.

What makes Arbitrum Crypto unique?

Arbitrum crypto stands out among other scaling solutions for Ethereum due to its various advantages:

Compatibility: It supports unmodified EVM contracts and transactions, allowing existing Ethereum DApps to operate on Arbitrum crypto without requiring any code changes.

Scalability: Arbitrum crypto can handle a high number of transactions per second with low fees and fast finality while maintaining the security guarantees of Ethereum.

Flexibility: Developers can deploy programs written in popular programming languages like Rust, C++, and more using Stylus, the upcoming EVM+ equivalence feature.

Decentralization: It utilizes a decentralized network of validators who stake ARB tokens and earn fees, eliminating reliance on any centralized operator or sequencer for transaction ordering.

Arbitrum crypto boasts a thriving ecosystem of DApps, wallets, tools, and partners, positioning it as one of the leading scaling solutions for Ethereum. Numerous protocols are available on the network, including GMX, Treasure, Camelot, Radiant Capital, Vela Exchange, ZyberSwap, Dopex, PlutusDAO, TridentDAO, Jones DAO, and more.

The growth of Arbitrum's ecosystem can be seen from its total value locked (TVL) metric, which reached a peak of $3.2 billion in November 2021 and currently stands at approximately $1.85 billion as of the current date. This makes it the highest TVL among all other Layer 2 ecosystems.

Network security in Arbitrum Crypto (ARB)

Arbitrum's security is derived from the Ethereum network, which provides consensus and finality for transactions executed on the Arbitrum crypto rollup. In optimistic rollups, Arbitrum crypto executes transactions off-chain and bundles multiple transactions into a batch before submitting it to the Ethereum mainnet. The term "optimistic" indicates that these off-chain transactions are assumed to be valid without submitting proof of validity.

However, in the event of a dispute, there is a specific time period after the rollup is submitted to the Ethereum mainnet where anyone can challenge the validity of a transaction by submitting a fraud-proof. This mechanism ensures that if any fraudulent transactions occur off-chain, they can be detected and challenged, providing an additional layer of security to the system.

Recent developments about Arbitrum Crypto (ARB)

The Arbitrum Foundation has launched its first-ever grant program in line with its mission to foster ecosystem growth through grants for partner projects and educational initiatives, including in-person and online events. The program, known as Foundation Grants, operates separately from any other grant programs authorized by the Arbitrum DAO.

The Foundation Grants program aims to support ecosystem growth by providing grants to areas that can potentially yield greater returns to the Arbitrum ecosystem. These grants will focus on improving adoption, enhancing technical structures, and building sustainable communities. They will be milestone and KPI-based, with specific objectives set in collaboration with each applicant.

The program will operate in distinct phases, each targeting specific areas within the Arbitrum ecosystem. The initial phase concentrates on decentralized applications and infrastructure for Arbitrum Nova and Arbitrum One. Projects that do not meet the criteria for the current phase are encouraged to submit proposals directly to the ArbitrumDAO or to revisit the program in future phases.

Chosen applicants who receive grants from the Foundation will have the opportunity to be showcased, and the program's major activities will be included in the transparency report. The Foundation Grants program is an ongoing initiative with a rolling grant acceptance window, allowing projects to submit grant requests as needed. While phases do not have defined end dates, they are expected to last for about three months or until the objectives are achieved. There will also be grant moratorium periods during the year when additional applications will be temporarily suspended.

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