Convert ARB to TRY

An optimistic rollup-based Layer 2 solution, Arbitrum seeks to speed up and optimize the Ethereum blockchain in order to facilitate its scalability.

The data is processed off-chain by rollups, a Layer 2 technique, and then cryptographical verification of the data is submitted back to the main chain. Optimistic rollups hold unless demonstrated differently that all filed transactions are legitimate.

While keeping Ethereum secure as a whole, rollups try to increase transaction throughput and decrease gas expenses.

Decentralized applications (dApps) cater to a broad variety of use cases, including decentralized finance (DeFi), non-fungible tokens (NFTs), payments, and games. Arbitrum makes use of smart contracts created in Ethereum’s Solidity programming language to facilitate this creation.

The ARB native token of Arbitrum is an example of an infrastructure token. The goal of these initiatives is to make blockchains (namely Arbitrum) and decentralized applications (dApps) more robust, efficient, and secure. To be more precise, the network transaction costs connected with using Arbitrum decentralized applications (dApps) are covered by the Layer 2 token, ARB.

In addition to incentives and transaction fees from the network’s users, holders can stake their ARB tokens with validator nodes to gain even more ARB.

MetaMask is one example of a non-custodial wallet that provides access to the Arbitrum network. Digital asset management and interaction with dApps are made possible by these crypto wallets.

Kraken is a cryptocurrency exchange that offers ARB and 500+ others.

ARB tokenomics

With a maximum supply limit of 10,000,000,000 tokens, Arbitrum’s native cryptocurrency, the ARB token, was issued as an ERC-20 token.

With the distribution of ARB through an airdrop, the Arbitrum Foundation became the Arbitrum DAO, a Decentralized Autonomous Organization.

In honor of this achievement, a massive airdrop was held, distributing 1.162 billion ARB tokens (11.62% of the total supply) to users who were actively involved in the Arbitrum ecosystem. This included individuals who bridged funds and conducted transactions on the platform.

In addition, the Arbitrum DAO set up a system where a 12-person Security Council could be elected democratically. Emergency and non-emergency measures to mitigate different threats to the ecosystem are to be implemented by this council.

An L2 smart contract mechanism controls the ARB token’s yearly inflation rate, which can be up to 2%. Inflation ensures the sustainability of the Arbitrum ecosystem by allowing for the progressive issuance of new tokens, which in turn encourages involvement in the network.

The Future of Arbitrum

A decentralized autonomous organization (DAO) governs the Arbitrum ecosystem and gives ARB holders a say in any proposed modifications. Arbitrum’s potential user base will grow as a result of cross-chain interoperability, which will allow the platform to work with tokens and coins on different blockchains without any hitches. Building and deploying on Arbitrum is anticipated to become even easier as developer tools and infrastructure undergo evolutions, which should significantly expand its reach.

The scalability and cheap gas costs of Arbitrum have the possibility to pave the way for the creation of more intricate and decentralized apps on the Ethereum network, which might lead to a wider variety of use cases and adoption, therefore impacting the ecosystem. Just being a part of the market could spur other L2s to up their game and innovate, which in turn could improve the services they provide.