What is Arbitrum, the new L2 on Ethereum?

After several years of development, Arbitrum is officially launched. More than 150 projects requested early access to the development system.

A launch that looks very promising. Especially since the first users of the system confirm an extreme reduction in transaction cost (up to 270 times lower)! We will tell you more about this L2 in this article.

What is Arbitrum?

Arbitrum is a technical L2 solution based on the underlying Ethereum blockchain.

It is an ideal solution for many DeFi applications or applications open to the public because not only is it based on a very reliable underlying Blockchain, but in addition its technical solution significantly increases the number of transactions per second, which allows it to reduce the costs associated with each transaction significantly.

A new generation tool

Arbitrum is the second next-generation layer of decentralized applications based on the Ethereum blockchain. It is a tool available to decentralized applications to support migration to a faster and more cost-effective model.

The future of DApps

It is a necessary update for the proper functioning of some decentralized applications.

Arbitrum is not associated with a Token, unlike similar tools such as Polygon, Solana or Optimism.

Arbitrum is based on the underlying Ethereum Blockchain.

It is a guarantee of long-term security!

The security of the Ethereum blockchain is well established. Second capitalization in the crypto universe, and probably on track to become the first in a few months when it migrates to the Proof-Of-Staking consensus model.

The Ethereum Blockchain is a guarantee of security for potential investors.

It is probably what attracts many DApps to deploy on Arbitrum. By developing a decentralized application on this tool, we benefit from the security associated with Ethereum.

Bancor users seem delighted with the deployment on Arbitrum: without any changes to the Smart Contract, the deployment has reduced the cost associated with each transaction by 270 times. An extraordinary performance!

Users of the decentralized application Mcdex have also experienced transactional fees divided by 270! Without any modification.

The official website of the Arbitrum sidechain is very ambitious. The idea behind the project is to allow its users to build a decentralized application in just a few minutes—a rather ambitious goal, but possible, as we will see.


The main benefits of the project:

  • Full scalability of the decentralized application
  • A considerable reduction in the cost of each transaction
  • Validation by validators chosen by the decentralized application.
  • A migration to level 2 is speedy and straightforward.
  • Well-stocked technical documentation.

Why use Arbitrum?

  1. We will see below that the advantages offered by this tool are numerous. A 100% scalable solution

Ethereum is a highly secure solution, but its capacity is limited (only a few transactions per second).

The widespread adoption of cryptocurrencies worldwide requires greater support capacity on the network. The credit card network is estimated to generate an average of 56,000 transactions per second.

The Arbitrum sidechain provides an answer to this problem. Arbitrum is a solution that exceeds the computational and storage limits of the underlying blockchain.

Meagre transaction cost

The transaction cost associated with Arbitrum is meagre: up to 50 times lower than on the first layer of the system. Arbitrum offers a low storage cost for computing, regardless of the number of resources used.

100% automatic contract conversion: high portability

Contract conversion is 100% automatic—no new computer language to learn. However, the tool provides technical documentation to facilitate integration for new applications. The Arbitrum tool converts your existing contracts to Arbitrum contracts. Arbitrum is 100% portable. The tool works with web3, ethers and go-Ethereum. This way, the tool adapts to your system, and you don’t need to rewrite your front end.

The transfer of tokens between Layer 1 and Arbitrum is 100% transparent and secure. Arbitrum fully supports your old tokens.


Unlike other tools that do not necessarily offer the same degree of security as the underlying blockchain, Arbitrum is as reliable and secure as Ethereum.

The high degree of confidentiality

If you are looking for intelligent private smart contracts, Arbitrum is for you. How the tool works ensures that only developers or validators in a sidechain can see your code. However, transactions executed on the network are visible.

The Arbitrum project also brings together exceptional engineers. The founder of the tool and CTO is Ed Felton, formerly a professor at the prestigious Princeton University.

Is Arbitrum more efficient than another level 2 solutions?

Arbitrum has many advantages over other Level 2 systems.

First, Arbitrum does not publish the source code of smart contracts. It can be seen as an advantage or a disadvantage. We consider this an undeniable advantage because it favours proprietary development projects. This confidentiality is sometimes necessary to maintain non-reproducible source code. It improves the security of the application.

Advantage of the solution: is the possibility for the decentralized application to choose its validators. The tool requires only one honest validator to ensure the proper functioning of a decentralized application. It is an advantage that is not offered by other Level 2 systems. Only validators approved by the decentralized application do the work to calculate and form a consensus for each smart contract. It allows for a significant increase in contract throughput and storage capacity as long as a consensus mechanism does not limit the bandwidth.

  • Arbitrum allows the execution of arbitrary intelligent contracts, unlike the Plasma solution.
  • The system is more secure than the Optimism solution because the anti-fraud system is based on several levels.
  • The tool is also compatible with the Ethereum Blockchain. A guarantee of security for users.


Arbitrum is a tool that promotes the adoption of a more advanced and faster consensus model. We find that the real genius idea lies in the possibility for the founders of a decentralized application to choose the honest validators themselves. It reduces disputes, the time of each transaction and the cost of each transaction. An up-and-coming tool that should be quickly adopted. There are already nearly 150 projects potentially interested in the tool.


  1. What is Arbitrum?

 Arbitrum is a new Ethereum sidechain for decentralized applications.

  1. What is the Arbitrum token?

 Arbitrum does not have a token on its blockchain.

  1. Is Arbitrum compatible with other sidechains?

 For now, it has not been possible to bridge Arbitrum and another sidechain.

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