Wigwam is the best Arbitrum blockchain crypto wallet

Arbitrum blockchain review

Arbitrum is one of the leading layer-2 solutions for Ethereum, with its ecosystem having more than 300 projects, exceeding $3.3B in market capitalization, more than 30 cross-chain bridges, and about a dozen large centralized exchanges listing its native ARB token. Arbitrum achieved all of this in 3 years because of its Arbitrum Virtual Machine (AVM) architecture which offers efficient transaction execution, support for dApp development, EVM compatibility, and much more!

Arbitrum origins and vision 

Steven Goldfeder, Co-Founder, and Chief Executive Officer at Offchain Labs founded Arbitrum in August 2021, envisioning a scaling solution for Ethereum that supports smart contracts and a diverse range of decentralized applications without the limitations of scalability and high gas fees.

Arbitrum key milestones

Arbitrum’s mainnet was launched for the public in August 2021, to provide high-speed throughput with lower gas fees on transactions.

The year 2022 marked an important milestone for Arbitrum as, on June 21,  its Odyssey program, an 8-week initiative to bootstrap user engagements within its network, was launched. Users who explored Arbitrum (interact with various protocols) were given NFT badges for being active, and it also increased the chances of a user getting Arbitrum airdropped.

The response to the Odyssey program was so huge that it had to be paused on June 29, 2022, due to heavy load. The program was soon resumed. 
To keep Arbitrum ahead in the blockchain world, Nitro Upgrade happened in August 2022. This upgrade introduced a new architecture to increase the throughput, increase EVM compatibility, and lower the gas fees. 

Arbitrum launched its native token ARB in March 2023, to act as a governance token for Arbitrum DAO. 

Arbitrum continues to change the world of blockchain networks as it announced on October 27, 2023, that its “Orbit” program is ready, which will allow developers to spin up their own layer-3 blockchains on top of Abitrum’s mainnet. 

What consensus algorithm does Arbitrum (ARB) blockchain use

To offer faster and cheaper transactions and solve Ethereum’s scaling problem, layer-2  chain- Arbitrum leverages Ethereum’s consensus mechanism i.e. Proof-of-Stake (PoS), this provides greater decentralization, as it is more secure by Ethereum’s widely distributed network of validators.  

How Arbitrum (ARB) technically solved problems with scalability, decentralization, and speed

Arbitrum uses the optimistic rollup solution which addresses blockchain scalability by rolling up transactions into batches, executing them off the main Ethereum chain, and then storing the confirmation on the main chain. 

This method speeds up the process by rolling up transactions and assuming them to be valid, i.e. the blockchain no longer needs to validate separate transactions, it can directly confirm a “rolled up” batch of transactions. To keep it decentralized and secure, a rollup’s validity can be challenged and invalidated for up to seven days.

DeFi ecosystem on Arbitrum

Arbitrum offers a more established ecosystem for DeFi as it was launched with more than 400 dApps in its whitelist and over a dozen of them were already live before its network was open to the public because Arbitrum has its Virtual Machine and doesn’t depend on EVM. 

This allowed Arbitrum to offer reduced gas fees, interoperability with Ethereum, scalability, and reduced transaction costs in its DeFi ecosystem which were the biggest issues with Ethereum. 

Arbitrum’s DeFi ecosystem is quite diverse including decentralized exchanges like “Slingshot”, “UniSwap”, and “1inch”. Lending protocols like “Aave”, “Silo Finance” and “B.Protocol”. As well as derivatives exchanges such as “Aevo”, “Hegic” and “Lyra”. 

NFTs marketplaces on Arbitrum

Since Arbitrum is a layer-2 chain, NFT marketplaces on it offer lower transaction costs and better scalability. Arbitrum’s Virtual Machine, EVM compatibility, and interoperability with Ethereum’s Mainnet attract a wide range of artists and collectors.

Arbitrum has multiple NFT markets featuring a broader range of NFTs working as a hub for artists and collectors to mint, buy, sell, and trade. Some of the famous NFTs markets on Arbitrum as “OpenSea”, “Wen Moon Market” and “Double Protocol”.

To participate in the Arbitrum NFT ecosystem, we recommend using the Wigwam NFT app, a safe and convenient solution for working with Arbitrum dApps. 

Tokenomics and gas usage on Arbitrum

The native ERC-20 governance token for the Arbitrum blockchain is $ARB. It serves various purposes, such as facilitating value transfers, investment opportunities, and governance decision-making. 

The ARB token gives governance rights in the Arbitrum DAO, where token holders get to participate in key decisions by casting their votes on proposals, fund allocation, and protocol changes. Additionally, $ARB holders have the privilege to vote for members of the Security Council, overseeing the treasury wallet.

Despite having its native token, Arbitrum still uses ETH for its gas fee.

Conclusion

Arbitrum is a game-changer layer-2 solution for Ethereum, where new blockchains were coming as the “Ethereum Killer”, Arbitrum might have just given a different route with its VM. It addressed Ethereum’s scalability issues, having the potential to reshape the Ethereum landscape and make blockchain technology more accessible and user-friendly.