$0.1915

Arbitrum is a layer-two scaling solution built on the Ethereum network, designed to enhance speed, scalability, and cost efficiency. By employing optimistic rollups, it moves most computation and storage off-chain, resulting in higher throughput and lower fees while maintaining Ethereum's security and compatibility. This approach allows existing Ethereum decentralized applications to run without code modifications.

The platform's native token, ARB, serves a governance role. Offchain Labs, the development team, has transitioned control to the Arbitrum DAO, enabling ARB holders to vote on protocol upgrades, feature changes, and fund allocation. In March 2023, the project conducted an airdrop, distributing 12.75% of the total token supply to early users and DAOs based on their prior network activity. The developers have also outlined plans for future enhancements, including a layer-three solution called Orbit and a feature named Stylus that would support programs written in languages like Rust and C++.