Arbitrum One has officially surpassed 1 billion transactions since its launch in August 2021. As a prominent Layer 2 optimistic rollup for Ethereum, Arbitrum continues to grow significantly within the blockchain ecosystem.
According to Blockscan data, Arbitrum's closest competitor, Base, has recorded 755 million transactions to date, while the OP Mainnet has achieved 347 million transactions. Based on The Block’s data dashboard, Base currently leads in daily transactions with Arbitrum ranking second.
As per DeFiLlama, Arbitrum's total value locked (TVL) stands at an impressive $2.5 billion, making it the highest among Layer 2 solutions. Base follows closely with a TVL of $2.2 billion.
Developed by Offchain Labs, Arbitrum employs optimistic rollup technology, creating an off-chain computation network. This mechanism allows for faster and more cost-effective transactions while ensuring security through the Ethereum blockchain.
The “optimistic” nature of Arbitrum assumes that transactions are valid by default, verifying them only if challenged. This approach significantly reduces the computational load on the Ethereum main chain, resulting in quicker transaction processing and lower fees.
Arbitrum One is equipped with active fraud proofs and a security mechanism that permits transaction challenges. Currently, it remains in its stage one phase and has not fully transitioned to a permissionless state.
Offchain Labs operates several Layer 2 networks on Ethereum, each supporting distinct ecosystems. The flagship chain, Arbitrum One, is complemented by Arbitrum Nova, which utilizes the AnyTrust protocol. This network provides an off-chain data availability layer for storing transaction data and scaling applications.
In October 2023, Offchain Labs announced the release of tools for developers to launch their own Layer 3 blockchains using the Orbit software stack. This innovation enables developers to create unique chains by settling on either Arbitrum One or Nova.
Disclaimer: The Block is an independent media outlet delivering news and research. As of November 2023, Foresight Ventures is a majority investor of The Block. This article is for informational purposes only and does not constitute legal or financial advice.
