What is Arbitrum Coin? How does Arbitrum coin work?

Arbitrum is a Layer 2 expansion solution that uses Optimistic Rollup technology to solve the congestion and high gas fee problems of Ethereum. It improves throughput through transaction bundling and Layer 2 processing. , reduces gas fees, is compatible with Ethereum, and ensures security through fraud proof and arbitration mechanisms.

Arbitrum: A Layer 2 solution that breaks through the bottleneck of Ethereum

Arbitrum is a Layer 2 expansion solution designed to solve the problems of Ethereum network congestion and high gas fees. It utilizes Optimistic Rollup technology to expand transaction and computing capabilities on the Ethereum mainnet.

How Arbitrum works

The basic principles of Optimistic Rollup technology are as follows:

• Transaction bundling: Transactions are bundled in batches on the Arbitrum chain.
• Fraud Proof: Validators monitor transaction bundles and dispute any suspicious transactions.
• Arbitration: If there is a dispute over the validity of a transaction, arbitration will be conducted on the Ethereum mainnet.
• Challenge Period: Validators and users have a challenge period to dispute suspicious transactions.
• Finalization: If there are no objections during the challenge period, the transaction will be finalized on the Ethereum mainnet.

By bundling transactions and moving them to Layer 2 chain processing, Arbitrum can significantly reduce the transaction load on the Ethereum mainnet, thereby increasing throughput and reducing gas fees.

Advantages of Arbitrum

• High throughput: Arbitrum can handle thousands of transactions per second, much higher than the 15-45 TPS of the Ethereum mainnet.
• Low gas fees: Since transactions are processed on the Layer 2 chain, gas fees are significantly lower than those on the Ethereum mainnet.
• Compatible with Ethereum: Arbitrum is compatible with the Ethereum Virtual Machine (EVM), allowing developers to easily deploy and execute smart contracts.
• Security: Arbitrum utilizes fraud proof and arbitration mechanisms to ensure the security and reliability of on-chain transactions.

The above is the detailed content of What is Arbitrum Coin? How does Arbitrum coin work?. For more information, please follow other related articles on the PHP Chinese website!