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- 1 Arbitrum is a protocol that improves the speed and cost of Ethereum transactions.
- 2 Arbitrum has two main chains: Arbitrum One, which implements the Arbitrum Rollup protocol, and Arbitrum Nova, which implements the Arbitrum AnyTrust protocol.
Arbitrum is a protocol that makes Ethereum transactions quicker and at low cost. It does this by utilizing two core protocols, Arbitrum Rollup and Arbitrum AnyTrust. Developers can work these protocols to create user-friendly decentralized apps with better scalability.
Arbitrum has two main chains: Arbitrum One, which began in 2021 and operates the Arbitrum Rollup protocol, and Arbitrum Nova based on the Arbitrum AnyTrust protocol and focuses on very low-cost transactions. In August 2022, Arbitrum One upgraded to the Arbitrum Nitro stack, which improved its scaling abilities by 7-10 times.
The ARB governance token is essential for decentralizing the governance of Arbitrum One and Arbitrum Nova, and their underlying protocols. This token permits ARB holders to function together to design the future of the Arbitrum ecosystem
About Arbitrum (ARB) tokens
The ARB token is a governance token that shows membership in the Arbitrum DAO (decentralized autonomous organization). ARB holders can join the governance process by voting on proposals about the development and management of the Arbitrum protocols and chains.
Holding ARB gives token holders the power to shape the direction of the Arbitrum ecosystem and help it become more decentralized. The ARB token is distinct from ETH, Ethereum’s native token, in its definition and operation. While ETH is a transactional token used to pay for transaction fees on the Ethereum network, ARB is specially made for governing the Arbitrum protocols and chains.
Arbitrum’s Governance Working
Arbitrum has two main governing bodies: the Security Council and the Arbitrum DAO.
The Security Council is a group of 12 members chosen by the Arbitrum DAO members. This group focuses on keeping the Arbitrum ecosystem secure and efficient by taking emergency actions when needed.
The Arbitrum DAO is the global community of ARB token holders and their selected delegates. This DAO is in control of managing Arbitrum and its Security Council. The DAO can change the Security Council’s powers or even remove it completely through constitutional proposals.
ARB token holders can join the governance process by voting on proposals directly or by giving their voting power to delegates who represent their interests. This decentralized governance system makes sure that decisions made within the Arbitrum ecosystem match the community’s best interests, rather than depending only on a centralized group of decision-makers.
Conclusion
Arbitrum is a protocol that aims to provide a better alternative to Ethereum for developing and using decentralized apps (dApps). It uses two core protocols, Arbitrum Rollup and Arbitrum AnyTrust, to achieve higher scalability and lower transaction fees. Arbitrum has two primary chains, Arbitrum One and Arbitrum Nova, that cater to different use cases and preferences.
Arbitrum also has a governance token, ARB, that enables token holders to have a voice in the decision-making processes of the Arbitrum ecosystem. Arbitrum has a decentralized governance system that is composed of two main governing bodies, the Security Council and the Arbitrum DAO, that ensure the security and efficiency of the Arbitrum ecosystem. Arbitrum is a protocol that offers a scalable and decentralized solution for Ethereum.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
