The Ethereum Blockchain is having scalability issues. So many decentralized apps are being built on the Ethereum network. Ethereum can only process fifteen transactions per second, and with a lot of Dapps coming into the network, the number of transactions will increase. This leads to network congestion and an increase in gas taxes.
This particular issue has necessitated the use of layer two solutions for ETH networks to help alleviate the burden on the network and provide less exorbitant transaction fees. Enter the Arbitrum blockchain today.
Fundamentals of Arbitrum Blockchain
Arbitrum layer two solutions are the first original second layer Blockchain to launch for Ethereum. Layer 2 solutions follow two styles of execution. The optimistic rollup and the zero-knowledge rollup are the two execution styles utilized by this network.
Arbitrum utilizes the optimistic rollup that permits the scaling of Ethereum smart contracts through communication between smart contracts on the Ethereum Blockchain and those present on the Arbitrum layer two blockchains.
The Blockchain Launch
The blockchain launch began when off-chain labs Arbitrum One launched a beta version of its mainnet to developers in the fifth month of 2021 to ensure that the Arbitrum blockchain was ready to take on the load that it planned to before releasing to the public.
At the initial stage of its soft launch, the beta version of Arbitrum One was equipped enough to onboard more than 300 Dapps on the Arbitrum blockchain. By August, the amount of Dapps on this beta version had exceeded 400; this guided its eventual public launch at the end of August.
Arbitrum Blockchain’s Mode of Operation
The network utilizes the promising rollup technology to bridge the gap between Dapps and the Ethereum main chain. The union between Arbitrum and Ethereum in the layer two solutions prevents congestion of the central Ethereum web by taking trades off-chain to the Arbitrum network where all the computations and validations are executed before the results of these computations are then transmitted back to the Ethereum main chain.
When these transactions are lifted off the major chain and tallied on the Arbitrum Blockchain, the trades are completed faster. The gas expenses are less exorbitant than transactions that are strictly carried out on the Ethereum main chain.
Step-by-step Guide on Using Arbitrum
Using Arbitrum, individuals can save money on Ethereum gas fees when transacting with Dapps that support the Arbitrum network. Here is how you can do so:
● Move your ETH/ERC-20 tokens from the ETH main chain to the Arbitrum layer. You will have to have set up Arbitrum on Metamask, though.
● The simplest way to link up Arbitrum with Metamask is using uniswap. Go to the Dapp – uniswap.org. Go to the top and click on networks, and you will find that a few networks are already supported. Click on Arbitrum, and it will lead you to Metamask.
● If you have added the Arbitrum network on Metamask, click on the dialog box asking if you want to switch the network. If you have not yet set up Arbitrum on Metamask, it will create a dialog box asking if you’re going to add this network to your Metamask. Click “yes” on it, and the network details will be automatically added.
● If for some reason, you don’t get linked automatically, you will have to add the network manually. You can type “how to connect Arbitrum to Metamask on Google,” It will come up with this page. Follow the instructions, copy and paste the network details manually in Metamask and click save.
● So the next thing that you need to do is take the Ethereum you have on the Ethereum main net and bridge it over to the Arbitrum network.
● You can use the Arbitrum one bridge and link up your Metamask. Then select the amount of Ethereum (or select ERC-20 token you may have and the amount) you want to move over. Click on deposit, and you’re done.
Keep in mind that there are also gas fees for this transaction, and the transaction takes about fifteen minutes to finalize. A significant downside to the optimistic roll-up system that Arbitrum employs is that if for some reason you want to move your ETH back from Arbitrum layer two to layer one, you will have to wait for seven days.
The Rate of Arbitrum Fees
Arbitrum fees may change depending on the kind of trade you want to carry out, but they are lower than the regular Ethereum gas fees.
Does the Arbitrum Network have a Token?
In different social media forums and comments sections, you might stumble upon people asking questions concerning how to buy Arbitrum, Arbitrum price, or how to invest in Arbitrum. You ought to understand that this network owns no native token, and trades on this network are made using ETH.
Apps on the Arbitrum Network
The perks of the Arbitrum layer two solutions can only be enjoyed on applications on the Arbitrum network. There are a lot of crypto apps that support Arbitrum, including centralized exchanges like Binance and crypto.com; crypto wallets – Metamask, Coinbase wallet, Loopring, Huobi wallet, and Zapper; popular Dapps – Uniswap, Sushiswap, 1inch, MakerDAO, and Curve. Get the comprehensive list of applications that support Arbitrum here.
The Bottom Line
The Ethereum ecosystem is already a massive one, and it keeps expanding; the necessity of a proper layer two solutions like the Arbitrum network renders is crucial for Ethereum to maintain its dominance in the world of decentralized finance and also new functionalities that have Ethereum involved in NFT, metaverse, and web 3.0 projects. Arbitrum network provides a means of faster transactions that cost users low prices.
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