Buy Arbitrum (ARB) with AUD

What is Arbitrum (ARB)?

Arbitrum is one of the Ethereum layer 2 solutions. Its main purpose is to contribute to the scaling of Ethereum, providing the security that Ethereum provides and enabling fast transactions with low transaction fees. Layer 2s are also referred to as roll-ups. This is because they confirm many transactions and send them to Ethereum in batches. So they are rolling up multiple transactions.

You can think of a roll-up as sending a letter somewhere. Normally, these letters (transactions) are sent one by one on the Ethereum network. But Arbitrum collects all of these letters into a single basket and forwards them to Ethereum. In this way, the transactions that are first approved by Arbitrum are approved collectively on Ethereum, and the workload that would be done when they are approved individually on Ethereum is saved.

How Does Arbitrum Work?

The Arbitrum network belongs to the Optimistic Roll-up class. As the name suggests, Arbitrum takes an optimistic view of transactions and accepts them as true. If a malicious transaction is detected among the transactions sent from Arbitrum to Ethereum, it will be challenged on the Ethereum mainnet. A challenge requires the transaction to be checked individually and the process to be extended. After the check, the malicious party (node) is financially penalized by slashing the ETH it owns.

What is ARB token?

ARB is the governance token of the Arbitrum ecosystem. It is built on ERC-20 standards and is required to be a decision-maker in votes held on the Arbitrum DAO. ARB token holders can directly influence Arbitrum by voting on improvements to the Arbitrum Nova and Arbitrum One blockchain in proportion to the amount of tokens they hold. Since the votes cast are in proportion to the tokens held, more ARBs means more influence. ARB tokens can also be delegated to different people in the DAO.

Who are the Founders of Arbitrum?

The organization behind Arbitrum is known as Offchain Labs. The co-founders of Offchain Labs and also the co-founders of Arbitrum are Steven Goldfeder and Ed Felten. Steven Goldfeder holds a PhD from Princeton University. The other founder, Ed Felten, who is also the CTO of Arbitrum, has worked as a professor at Princeton University.

What is Arbitrum DAO and Arbitrum Foundation?

Arbitrum DAO consists of ARB token holders and people who have an impact on the developments in the ecosystem. Arbitrum Foundation can be said to be the embodiment of this DAO formation. The reason why the system is like this is that 3rd parties want to make a deal with a specific organization instead of a DAO, and prefer to see responsible people.