Benefits of the Arbitrum Blockchain and Why You Might Want to Consider Using It

As a popular platform for developing decentralized applications (dApps), Ethereum (A layer 1 network ), experienced a tremendous increase in adoption. Unfortunately, it was less scalable due to the tremendous increase in adoption. In other words, the network faces a number of challenges, such as poor user experience (UX) brought on by high gas costs and slow transaction speeds. Imagine you spending $100 to perform a $50 transaction… Wouldn’t you be frustrated? Owing to this, the Arbitrum was developed to address this issue and transform how we carry out transactions.

Benefits of the Arbitrum Blockchain and Why You Might Want to Consider Using It
Benefits of the Arbitrum Blockchain and Why You Might Want to Consider Using It

What is Arbitrum?

It is a “Layer 2” roll-up mechanism created by Offchainlabs as a solution to Ethereum’s scalability issue. Rollups is a type of layer 2 scaling solution that aggregates multiple transactions into a single, compact transaction on the Ethereum network. This allows for many transactions to be processed and settled in parallel, improving the overall efficiency of the system.

It processes transactions 150+ times faster compared to Ethereum & unlike Ethereum, Arbitrum doesn’t have a native token.

Without further ado, grab a chilled water and popcorn as we dive into the main focus of this thread, which is:

“Benefits of Arbitrum and why you might want to consider using it”

But before then, let’s take a quick glance at what Layer 2 really means.

Talking About Layer 2 Solutions

Layer 2 solutions are built on top of existing blockchain networks (often referred to as “layer 1”), and are designed to address scalability, privacy, and other limitations of these networks. Layer 2 solutions attempt to offer a quicker and more effective user experience while protecting the security and decentralization of the underlying layer 1 network by allowing off-chain transactions and computations

In the case of Arbitrum, it is designed to be used as a scaling solution for Ethereum as said earlier.

So back to the main focus:

Benefits of Arbitrum and Why You Might Want to Consider Using It

The benefits of Arbitrum are numerous, but for the sake of this article, we’ll be looking at just 5 important points and they are as follows:

1. High EVM Compatibility

Arbitrum is a Layer 2 scaling solution that provides high Ethereum Virtual Machine (EVM) compatibility. This means that developers can deploy their existing Ethereum smart contracts to Arbitrum’s Layer 2 network. It allows for significantly higher transaction work rates, lower transaction costs, and faster finality. The fact that Arbitrum is based on Ethereum makes it easier for developers to interact with Arbitrum by allowing them to use their current tools and development processes.

The project can be compatible with EVM at the bytecode level, and any language, such as Solidity and Vyper, can be compiled into EVM.

That way, it makes developing much easier, as developers don’t need to master a new language before building on Arbitrum. In other words, it provides developers with an environment to test and debug their applications without having to deploy them to the mainnet. This helps developers ensure their code is secure and bug-free before they deploy it

2. Scalability

As already talked about this in the introduction, Arbitrum is a layer-2 blockchain solution that allows users to perform transactions at a much lower cost than is possible on a regular blockchain like Ethereum. This is because Arbitrum uses an Optimistic Rollup mechanism. It allows multiple transactions to bundle together and process in a single block, reducing the cost of each individual transaction. Additionally, it uses an advanced transaction fee structure that dynamically adjusts the fees based on demand, resulting in a lower cost for users.

This makes it an attractive platform for developers to build decentralized applications that need to handle high volumes of transactions.

3. Interoperability

Arbitrum’s design is interoperable with other blockchains. It can interact with and transact with other blockchain networks in a seamless manner. This could make it a key player in the growing ecosystem of decentralized technologies and provide additional opportunities for growth and expansion.

4. Strong Security Guarantees

Arbitrum uses a combination of cryptographic techniques and games theoretic incentives to provide strong security guarantees for its users. With a secure and decentralized consensus system that protects the network’s integrity, the platform is built to be very resistant to attacks. For mission-critical, decentralized applications requiring a high level of security, this makes it an appealing platform.

5. Increase Privacy

Arbitrum uses zero-knowledge proofs, a cryptographic technique that allows for secure and private off-chain transactions. This enhances the privacy of the network and allows for the development of secure and private off-chain transactions


Arbitrum is a good ecosystem because it offers a fast, secure, and reliable platform for deploying and managing smart contracts. It also allows users to customize their contracts to meet their specific needs and offers a variety of tools for enforcing contract terms and conditions.

Moreover as a popular scaling solution, over time they’ve been able to build partnerships with various Ethereum DApps and infrastructure projects, including Uniswap, DODO, Sushiswap, Alchemyplatform, Dexguru, Paraswap, Kyberswap, and many more.

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