Arbitrum (ARB)
- Official Website: arbitrum.io
- Definition: Arbitrum is a Layer 2 scaling solution for Ethereum, designed to improve scalability and reduce fees.
- Category: Layer 2 chain, Token.
- What It Is: A rollup-based solution that enhances Ethereum’s performance.
- Function: Enables faster, cheaper transactions on Ethereum.
- Analogy: Think of Arbitrum as a turbocharger for Ethereum. It boosts performance without changing the core engine.
- Pros: Scalability, low fees, Ethereum compatibility.
- Cons: Centralization concerns, competition from other Layer 2 solutions.
- Controversies: Reliance on Ethereum, regulatory risks.
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This page was last updated on January 28, 2025.
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