Today we talk about Arbitrum: a Layer2 useful for "scaling" Ethereum. Ethereum is suffering a lot from competition from other Layer1s: Binance Smart Chain, Solana, Terra, Fantom, etc Of course we must also remember the main Layer2: Polygon.
To simplify, Arbitrum is like the Lightning Network for Bitcoin.
It is a solution that will improve the speed and the level of complexity of any type of smart contract based on Ethereum, therefore for example also useful for all decentralized applications of DeFi (Uniswap, Aave, Balancer, Curve, etc) and maybe even for NFT.
The smart contracts on which Arbitrum is based therefore increase the capabilities of individual dApps and significantly reduce transaction commission costs.
Although Arbitrum still requires costs for native smart contracts on Layer 1, these are prices only for archiving and on-chain calculation, regardless of the number of resources used.
As stated by Vitalik Buterin himself, founder of Ethereum, rollups like Arbitrum are a quick technology for scaling dApps, so Arbitrum could really be a way to intervene on the commission costs of the blockchain.
Many await the release of Ethereum 2.0 for this reason and Proof of Stake to have ever lower transaction commission costs, so in the meantime alternative solutions are emerging such as rollups (Arbitrum and Optimism).
This problem is deeply felt in DeFi, since using a platform on Ethereum involves fees that even exceed $ 100.
Arbitrum offers a combination of benefits:
-Ethereum compatibility (EVM contracts and unmodified Ethereum transactions)
-Scalability (moving contracts computation and storage off of the main Ethereum chain, allowing much higher throughput)
-Low cost (designed and engineered to minimize the Layer1 gas footprint of the system, minimizing per transaction cost)
You can configure Abitrum One with Metamask by entering this data (you can use it to deposit your crypto on this chain):
Network Name: Arbitrum One
New RPC URL: https://arb1.arbitrum.io/rpc
Block Explorer URL: https://arbiscan.io
Here you can find the block explorer: Arbiscan Explorer
✅To transfer liquidity from Ethereum to Arbitrum One, you can use this bridge: Bridge Arbitrum
✅The only exchange that supports withdrawals on this chain is Crypto.com (Signing Up)
When you have transferred liquidity to Arbitrum (you have to pay the ETH fees) you will surely have a more scalable solution with lower fees (from 3 to 6 dollars, at the time of writing). Here the main platforms:
Are you interested in ways to earn crypto bonus? Check it out here (last UPDATE 14 September 2021): Some Sites To Earn Crypto Bonus (Old & New)