"Arbitrum is an L2 scaling solution built for Ethereum which utilizes optimistic rollups (OR) that leverage off-chain computation with on-chain data. Arbitrum went live on August 31, 2021 and over the past week it has seen tremendous growth hitting a total value locked (TVL) of $1.67B (as of 9/12/21). Arbitrum is the largest and fastest growing L2 solution today - with many liquidity mining rewards for early adopters.
Current chain ranking by TVL (descending order):
- Ethereum (L1)
- Binance (L1)
- Solana (L1)
- Terra (L1)
- Polygon (L1)
- Avalanche (L1)
- Arbitrum (L2)
So why does this matter? Arbitrum is one the main mechanisms that is supposed to help Ethereum scale by allowing more transactions per block at a faster processing rate, and most importantly, with lower transaction costs. If you have tried to do anything over the past few NFT craze weeks, you may have encountered $1K transaction fees for NFT minting. With PoS in ETH 2.0 and L2 mechanisms like Arbitrum - hopefully we can use the network in a more pragmatic way."
-Harsharn Singh, Investment Associate @ Ember Fund
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