Arbitrum is a layer-2 scaling approach created to make Ethereum smart contracts run faster and more scalable, while also introducing extra privacy capabilities. It relies on optimistic rollups to improve Ethereum’s speed, scalability, and cost efficiency. With Arbitrum, users gain from Ethereum’s security model and compatibility. It also aims to deliver higher throughput and reduced transaction costs versus Ethereum. This is achieved by relocating most of the computation and data storage work off the main chain.

You can run Arbitrum chains for the same kinds of activities you would do on Ethereum-such as using Web3 applications or deploying smart contracts-while benefiting from lower fees and quicker transactions. The primary offering, Arbitrum Rollup, is an Optimistic rollup protocol that carries forward Ethereum-grade security.

Arbitrum’s native token is ARB, which is used for governance. Offchain Labs, the team developing Arbitrum, has outlined a transition to a decentralized autonomous organization (DAO) setup, known as the Arbitrum DAO. ARB token holders can vote on proposals covering product features, protocol upgrades, how funds are allocated, and the selection of a Security Council.