What is Arbitrum?
Arbitrum is a layer-2 solution for the Ethereum network that is designed to improve smart contracts' functioning. Using Arbitrum in smart contracts increases transaction speeds, introduces the ability to scale and decreases commissions inside the network.
The Arbitrum ecosystem's token, ARB, was launched on 23 March 2023. There are 10 billion ARB. The Arbitrum community will control 56% of them, while 44% of the total ARB will go to investors and Offchain Labs employees. ARB token holders can vote on proposals from the decentralised autonomous organisation (DAO) that manages the project. Part of the tokens will be given away by developers to active users of the Arbitrum platform.
The project's developer, New York-based Offchain Labs, was founded by Princeton University Professor Steven Goldfeder and two of his graduate students. Steven Goldfeder was Deputy Director for Technology at the White House during Barak Obama's presidency. The company was valued at $1.2 billion in 2021 when it managed to attract $120 million in investment from Lightspeed Ventures and several eminent cryptocurrency venture funds.
What makes Arbitrum unique?
Several Proof-of-Stake (PoS) networks have been developed to solve the problem of Ethereum's scalability. These include Polkadot, Cardano (ADA), and EOS (EOS).
Arbitrum, on the other hand, works as a separate level in the network to reduce the amount of superfluous transactions on Ethereum's backbone network. This simplifies the verification of smart contracts using Arbitrum's optimistic composite data. Another defining feature of the Arbitrum network is its compatibility with EVM (Earned Value Management): developers don't need to study a new coding language to be able to create their own DApps on the Arbitrum backbone network.
Opportunities for traders
Arbitrum started trading on 23 March 2023. On the first day of trading, the token's volatility was 11.2%.
How to buy and sell the Arbitrum token
You can buy and sell the Arbitrum token on specialised cryptocurrency exchanges. Alternatively, you can trade CFDs on the Arbitrum token through a broker or trading platform, such as MetaTrader or Libertex, where you can use a multiplier and also trade if the value of the asset declines.