My Ethereum Layer-2 Portfolio - Part #2: Arbitrum

By Cryptofab | Cointune | 25 Jan 2023

As it is expensive to use Ethereum (ETH) mainnet, some layer-2 networks have been built on top of Ethereum to reduce gas fees.

One of these layer-2 networks is Arbitrum.

Is Arbitrum as secure as Ethereum?

Arbitrum is a layer 2 scaling solution for Ethereum. It allows for faster and cheaper transactions by moving some of the computation off of the Ethereum mainchain and onto a sidechain. Because Arbitrum is built on top of Ethereum, it inherits the security of the Ethereum mainchain. However, the specific security guarantees of Arbitrum may differ from those of Ethereum. For example, Arbitrum uses rollup technology to increase scalability, which may introduce new attack vectors or vulnerabilities that do not exist on the Ethereum mainchain. Additionally, the security of Arbitrum also depends on the security of the Ethereum mainchain and any other systems that it interacts with:

  • The centralized sequencer is a single point of failure;
  • As per, the fraud proof system would not be yet permissionless as it requires validators to be whitelisted and hence it creates an additional risk:


Therefore, Arbitrum is not fully permissionless, trustless and decentralized as it claims to be, and hence its security level is not the same as on Ethereum mainnet...

Why I use Arbitrum despite these risks

I use Arbitrum for two reasons:

  • An airdrop will likely happen in 2023, and using DeFi protocols on Arbitrum might make me eligible, although it is not sure;
  • is one of the best protocols of all the DeFi space and using it on Arbitrum increases the airdrop probability...

However, due to the above-mentioned risks, I progressively reduce my exposure to Arbitrum by transferring my assets to L1 networks.

Next time, I will talk about Polygon (MATIC), which is a sidechain built like a layer-2 with some features of a layer-1 network...

Please find below two links to earn more cryptos...

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