What Is Arbitrum Blockchain?
Arbitrum is a specialized Layer 2 blockchain, designed to enhance the capabilities of Ethereum. Its role is to make the processing of smart contracts on Ethereum faster and more cost-effective. The core of Arbitrum’s innovation is its rollup technology, which ensures transactions are not only cheaper but also completed at a much quicker pace. This has made it a favorite among developers who need to manage high volumes of transactions efficiently on the Ethereum network. What’s more, since it’s tailored for Ethereum, integrating Arbitrum into existing Ethereum projects is straightforward, offering a smooth transition for developers familiar with the Ethereum ecosystem.
Brief History and Development
Arbitrum’s journey is pretty fascinating. It started back in 2018, when a group of bright minds from Princeton University, including Ed Felten, Steven Goldfeder, and Harry Kalodner, got together to tackle the limitations of Ethereum’s scalability. They came up with this ingenious idea for a Layer 2 solution, which eventually became Arbitrum. Fast forward to 2021, and things really started to heat up. That’s when Offchain Labs, the company behind Arbitrum, launched Arbitrum One, their mainnet beta. This launch was a game-changer, as it opened up new possibilities for developers looking to build more efficient Ethereum-based applications. The cool part? It quickly caught the attention of the blockchain community, marking a significant milestone in Ethereum’s evolution.
What You Need to Know About Arbitrum Ecosystem
The Arbitrum ecosystem is vast, encompassing over a thousand different platforms and applications. Let’s take a look at some of them:
Uniswap (UNI): Uniswap is a decentralized exchange protocol that allows users to swap various cryptocurrencies without the need for a centralized intermediary. It provides liquidity to the Arbitrum ecosystem and offers users the ability to trade tokens seamlessly.
Top tokens by 1 year volume on Uniswap. Source: uniswap.org
SushiSwap (SUSHI): SushiSwap is another decentralized exchange that operates on Arbitrum. It offers yield farming, staking, and other DeFi features, making it a popular choice for users looking to earn rewards and trade assets.
Aave (AAVE): Aave is a decentralized lending and borrowing platform that has expanded to the Arbitrum network. Users can lend their assets to earn interest or borrow assets by providing collateral. It contributes to the liquidity and lending services on Arbitrum.
Getting Started With Arbitrum Blockchain
Starting with Arbitrum is straightforward. Follow these steps:
Setting Up an Arbitrum Wallet
The first step is to acquire a specialized wallet like Gem Wallet. It helps manage ARB tokens and grants access to the entire ecosystem. Gem Wallet is designed to be user-friendly, secure, and functional, with open-source and self-custody features empowering users.
Next, acquire ARB tokens for transactions. You can obtain them from exchanges, friends, or contests. The easiest method is purchasing within the wallet using a credit card. Gem Wallet simplifies this process, enhancing reliability and security.
Participate in staking ARB tokens, crucial for network stability. Staking is not just about passive income; it’s the backbone of blockchain security. Gem Wallet makes staking simple with a two-click process in the ARB tab, ensuring accessibility.