Arbitrum

Arbitrum is a layer-two scaling solution developed for Ethereum and brought to life by Offchain Labs. Transactions are executed outside the Ethereum mainnet, then compressed in batches and posted to Ethereum; users thus benefit from Ethereum's security while paying lower fees. The ecosystem includes the Arbitrum One and Nova networks, along with the Arbitrum chain framework that lets teams set up their own chains. ARB is the governance token of Arbitrum DAO.

Arbitrum uses the optimistic rollup approach: state changes submitted to the chain are assumed to be valid, but during a set challenge period any participant can submit a fraud proof against an incorrect result. Transaction fees on the network are paid in ETH, not ARB. ARB holders vote on matters such as protocol upgrades, use of the DAO treasury and ecosystem funds, or delegate their voting rights to representatives. The Stylus feature also allows contracts written in languages such as Rust to run.

The ARB price can move together with transaction volume and application activity on the network, competition with rival layer-two networks, scheduled token unlocks and general trends in the Ethereum ecosystem. On Lzzo.com, the Arbitrum price is shown by converting Binance ARB/USDT data into US dollars at the Coinbase Exchange rate; the chart is produced from the same series.