Arbitrum is an Ethereum scaling solution created by Offchain Labs. Ethereum is becoming more and more popular because it is a good platform to make decentralized apps (dApps). Unfortunately, the network has to deal with a lot of problems because people are using it more often, problems like high gas fees or transaction fees and slow transaction speeds. The Ethereum community came up with a solution called Arbitrum to fix the problems in the network.
In this article, you can find out more about Arbitrum, how it works, and what it can do for you and your business.
Arbitrum was made to solve some of the problems with the current smart contract technology on the Ethereum network, which has lengthy and expensive transactions. This means that high-throughput, low-cost smart contracts can be made with this set of scaling options while still being completely secure.
One of the most interesting features of Abitrum, Optimistic transaction rollups connect ethereum smart contracts to arbitrum smart contracts via messaging. Also, the transaction charge will be processed at layer 2. This will speed up and simplify the main chain results.
The layer-2 solution attempts to increase the performance and scalability of smart contracts while also adding additional privacy protections.
It enables developers to run unmodified Ethereum Virtual Machine (EVM) contracts and transactions at layer-2 while still leveraging Ethereum’s layer-1 security, by letting transactions to occur off-chain before being merged and sent to the base layer as a single transaction. As a result, transactions on layer-1 Ethereum will not be slowed down by a large number of requests for transactions.
Here the reasons why should you link your assets to Arbitrum Network
- Insured security: is assured that users will be able to verify Layer 2 is correct.
- Ethereum-compatible.: It is capable of running unmodified EVM contracts and unmodified transactions on the Ethereum blockchain
- Realiability: by offloading the processing and storage of contracts from the main Ethereum chain, substantially higher throughput is possible than previous outputs.
- Cost Efficient: Its system was designed and built to make the L1 gas footprint of the system as small as possible, that will result to lower cost transaction.
It is the only scaling option that provides the same set of functionality at the lowest cost, and it is the only rollup that enables direct porting of Ethereum contracts at the bytecode level without requiring code revisions.
How does it work?
Speeding up the Ethereum network is one of its primary functions. It’s faster because it’s built on top of the Ethereum blockchain. dApps built on Arbitrum use the same programming language as those built on Ethereum: Solidity. As a last step, the free compiler is employed to accomplish this as well. It is possible to utilize this tool with any Ethereum-based tokens.
Most of the time, dApps only use the main chain when they start up and when money moves in and out of Arbitrum. A lot of interactions happen outside of the chain, which speeds things up and makes things happen quickly.
It also keeps a lot of data private. On the blockchain, dApp state cryptographic hashes are made public. Only the users of dApp app can see its code and storage, Developers can also set their own validators and decide what information to publish with users. This just shows how decentralized apps (dApps) are incredibly versatile.
Arbitrum ecosystem consists of four roles, which are controlled by a verifier, a virtual machine(VM), a manager and a key.
- Verifier’s role is to check the legitimacy of the transaction fees and responsible in posting valid transactions.
- Virtual Machine is a virtual participant specifically with codes and data
- Manager’s role is to keep track the progress of the machine and make sure it works properly
- Key is a protocol member that is responsible with fees on arbitrum by signing with the private keys associated with it.
It does not have a token, according to DeFi Pulse data. additionally, Offchain Labs has no intentions to introduce Arbitrum tokens in the near future. On the Ethereum network, rollup transactions will be settled in ETH, ETH is the native currency of Arbitrum, so for any transaction or smart contract execution on the Arbitrum chain users only need Ether (ETH) for paying gas fees (ArbGas), therefore it only uses ETH as its main currency. Although it does not have its own tokens, it has the ability to safely transfer assets from Ethereum to Arbitrum One and back, including ETH, ERC-20 tokens and ERC-721 tokens.
Quick and Easy Guide to Connect Your Assets to Arbitrum
Before you start to use the Arbitrum ecosystem, you should know some basics about the gas fee and possible risks.
- It uses ArbGas to keep track of how much it costs to run a task on an Arbitrum chain, plus it has no limit on how many ArbGas it can hold, and it is cheaper than Ethereum’s gas tax.
- It is a chain of smart contracts, its users are at risk from smart contract risk. You could lose your money in the event of an unanticipated smart contract bug or an unanticipated economic defect.
- Because Ethereum is a permissionless platform, anyone can deploy any smart contract code, thus you should only use the app if you are confident in its security.
Here are the easy steps
- Open Your MetaMask Wallet
To begin, open your web browser. Clicking on it opens the Metamask wallet.
So to add Arbitrum to MetaMask, you must first open the MetaMask wallet on the full screen.
- Select Network of Your Choice
Make sure “Ethereum Mainnet” is visible. Click the arrow next to it to proceed to the bottom. This unlocks the network’s tap, allowing you to choose from the several EVM blockchain (Ethereum virtual machine) networks. Click on Custom RPC to add a new EVM blockchain network. Then select the network you want to join. In this situation, Arbitrum.
- Add Your Network Details
Metamask will now prompt you for the information required to link the wallet to the Arbitrum network.
4. Click the Save button
Now you have Arbitrum stored in your MetaMask account. To change EVM blockchains. To switch between different blockchains, click the Network button in the top right corner of the screen. Add EVM blockchains the same way and you can add any EVM blockchain.
Note: There is a minimum of seven days withdrawal period, after sending your funds through the bridge, you must wait at least 7 days for it to reflect on the mainnet.
Advantages of Arbitrum to Other Networks
All the projects that are on Ethereum have already switched or are planning to switch because of the scalability and gas fees on ETH. Running DApps on L2 helps developers to grow their projects, which is better and beneficial for them.
The Uniswap community opted to start on Arbitrum as the preferred platform. Many other well-known Ethereum-based decentralized applications (DApps), such as SushiSwap, Aave, Curve, CREAM, and hundreds of more projects, are transitioning to Arbitrum in order to take advantage of its benefits. However, it is not only programs and currencies that are migrating to the Arbitrum network; even sites such as Etherscan are showing support for the network through their platform.
The reason that many projects, applications, and currencies are switching is that it is simple for developers and users to transition from L1 to L2 and back to L1.
If you want to move from Ethereum L1 to Arbitrum L2, this is a simple way. A wallet like Metamask can help you do this. Then you need to connect your Ethereum account to the Arbitrum one chain, now you can transfer tokens
Ethereum layer 2 enables the execution of smart contracts without the need for authorization. It’s similar to Matic (Polygon) in that it requires assets to connect to its network but does not require its own token.
It is also an EVM that makes use of Ethereum as a security layer. Like Ethereum, it is capable of running smart contracts. For both developers and users, this makes switching between chains a cinch. Most of the smart contracts that are now running on Ethereum are expected to move to Artbitrum. Only if scale and gas fees become an issue on ETH. The majority of projects should be done with an L2. This isn’t true for all projects, of course. Most smart contracts can run on either chain, but the main chain should get more traffic.
Depositing and Withdrawing in Arbitrum
Using Arbitrum Bridge to exchange Ether and Tokens to Ethereum:
Step 1: Head over to Arbitrum Bridge then plugin your Metamask, after that Connect your wallet to the account that contains your ETH, then confirm if you successfully connect.
Step 2: Then it will immediately collect your ETH and display it on Ethereum Mainnet. It will appear as a Layer 1 balance on the Ethereum Mainnet and a Layer 2 balance on the Arbitrum L2 network.
Step 3. Select the asset that you want to bridge over.
Step 4. Next, enter the amount of ETH or tokens you wish to send to L2 and click deposit.
Now follow the prompts on Metamask. Verify and authorize the transaction on your MetaMask wallet, then wait for the blockchain to confirm it. Ideally, it should not take longer than ten minutes.
Use the Arbitrum One block explorers to observe your transactions performed in real-time.
Congratulations! Your funds have been transferred from Ethereum Mainnet to Arbitrum One. Make sure to switch your Metamask network to Arb1 to see your funds.
Arbitrum is a new and easy-to-use scaling solution for the Ethereum network, that uses the Rollup technology, developers can build decentralized applications (dApps) with tools and languages they already know, at a fraction of the cost of Ethereum.
Many projects adopted Arbitrum One’s mainnet beta in May 2021. Since then, the network has grown significantly such as Real estate, healthcare, energy, and insurance are just a few of the businesses that are using Arbitrum technology as a means of enhancing their operations.