There are many ways in which L2 solutions help improve blockchain performance and each of them has its userbase, both individuals and platforms. The most worked-on component of blockchains is information security, transaction speeds, and reliability. Depending on the type of service an L2 platform is providing, it can cover one or multiple aspects and even branch out on them as needed. Arbitrum is also trying to provide a specific suite of services that covers platform scalability, information security, and much more.
How Does Arbitrum Work?
If looked at from a distance, the overall picture that Arbitrum creates is a system that takes regular transactions, puts them through the chain state where it is verified, and then provides an output that comes from the process included in the transaction. The smart contracts going through this process can be used for transactions, communication, or even data transfer. Everything is kept secure and results in faster response time on each transaction and contract execution. Here are some of the key benefits of using Arbitrum as their L2 solution of choice.
- Keeping information secure is paramount to any L2 platform that service providers decide to implement on their system. With Arbitrum, you can experience trustless security that comes straight from the Ethereum blockchain itself. Any one party involved in the transaction can ensure correct L2 results.
- The biggest benefit that Arbitrum provides platforms is the ability to scale their services quickly and significantly by moving their storage needs and computation requirements away from Ethereum’s main chain, thereby increasing throughput and speeds exponentially.
- Cost minimization is also a huge benefit of moving to L2 as the gas fees on L1 are pretty high and Arbitrum can remove that footprint, or at least minimize it to a great extent. You get to provide the same service but at a much lower cost to yourself and users.
- Arbitrum claims that the combination of features they are providing at their cost is not provided by any other competitor.
Arbitrum is created by Offchain Labs, a company with a team of highly experienced blockchain specialists, software engineers, crypto and blockchain researchers, Ethereum enthusiasts, and more.
How to Participate?
Currently, there is no public news released by Arbitrum regarding an ICO. However, you can stay updated about future investment opportunities by following their website and Twitter.
* ICO Daily does not provide investment advice. Please read our disclaimer