<p dir="ltr">Ethereum is a hugely popular platform for creating decentralized apps (DApps). However, a rapid increase in use in recent years has pushed the network to its maximum limits, pushing transaction fees over the ceiling and causing severe congestion.&nbsp; While some argue that on-chain changes and improvements are the best approach to grow Ethereum, others are researching alternative paths, known as Layer 2 solutions. And Arbitrum is the outstanding platform among a lot of layer 2 solutions. Through this article, <a href="https://www.builder.news/" alt="Builder.news" title="Builder.news" target="_blank" rel="" class="">Builder.news</a> will provide necessary information about Arbitrum ecosystem which is highly evaluated in the current market.</p><h2>Arbitrum overview</h2><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed2f5beabf1910a8e6023f659fee92.jpg" alt="arbitrum" title="arbitrum" width="600" height="465"></p><p dir="ltr">Arbitrum is an <a href="https://www.builder.news/crypto-insights/layer-2-scaling-solutions" alt="Layer 2 scaling solutions - What you need to know" title="Layer 2 scaling solutions - What you need to know" target="_blank" rel="" class="">Ethereum Layer 2 scaling solution</a>, built on Optimistic Rollup technology developed by the Offchain Labs team. Arbitrum takes advantage of the capacity to communicate between layer 1 and layer 2, allowing any type of Ethereum asset to be moved between Layers 1 and 2 without the need for trust. Although Arbitrum transactions are still resolved on Ethereum, Arbitrum just submits raw transaction data to Ethereum, with contract execution and storage occurring off-chain, hence the gas charge required on Arbitrum is relatively modest compared to the mainnet, and the contracts are completely compatible with no gas restriction.</p><p dir="ltr">Arbitrum had nothing a year ago, but now, it has 2.53B TVLs, 250+ active projects, 330,000+ addresses, and 4M+ txns. We cannot deni Ay that Arbitrum has assembled a dream team.</p><h2>Arbitrum ecosystem</h2><p dir="ltr">In order to clarify the Artribum’s development potential, we need to pay attention to the construction of its ecosystem which is believed to bring the convenience of the users’ experience.&nbsp;</p><h3>Tools</h3><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed2f5beabf205aa8e6023f659fee92.jpg" alt="arbitrum tools" title="arbitrum tools" width="600" height="407"></p><h4>For developers</h4><p dir="ltr">The Arbitrum network is supported by the most popular Ethereum development tools and suites, such as Web3.js, Truffle, Hardhat, Infura, and Moralis. Developers may utilize these tools as usual, and the development process is similar to that of Ethereum.</p><p dir="ltr">The Graph and Chainlink, both of which enable the Arbitrum network, are also required for development in order to enhance and complete the decentralized application.</p><p dir="ltr">With these fundamental tools, Arbitrum's initial users may almost smoothly transition to the Arbitrum ecosystem and have the same development experience as on the Ethereum network, with the capacity to construct fully functional decentralized apps.</p><h4>For users</h4><p dir="ltr">The ArbiScan blockchain explorer, Nansen, Token Multisender (for multiple NFT transfers), and Gnosis Safe are some of Arbitrum's user tools (a multi-signature wallet that can be used as a shared wallet for teams or as a 2FA wallet management tool for individual user). These tools not only guarantee that the fundamental user's demand to view transaction information is met, but also enable data analysis and specific interaction options for select users, allowing Arbitrum's use to grow.</p><h3>Wallet</h3><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed2f5beabf2451a8e6023f659fee92.jpg" alt="atbitrum wallets" title="atbitrum wallets" width="600" height="410"></p><p dir="ltr">According to the Arbitrum portal, almost all of the main wallets are connected with the Arbitrum network, allowing users to utilize their regular wallets to communicate directly with different Arbitrum apps, such as Bitkeep wallet, Bridge Wallet, Meta Mask, Coinbase Wallet, D’cent Wallet, Debank wallet, and more.</p><h3>Bridge</h3><p dir="ltr">Along with the official cross-chain bridge, Anyswap, Hop, Celer, and other cross-chain bridges have integrated Arbitrum network compatibility. Furthermore, the major exchanges enable Arbitrum network top-ups and withdrawals, which means they can not only operate as cross-chain bridges connecting Arbitrum to the main Ethereum network and other networks, but can also execute direct fiat on-ramps for Arbitrum. Exchange support is critical. This is why <a href="https://www.builder.news/crypto-insights/arbitrum-the-mosttvl-layer-2-project" alt="Arbitrum - Story about most-TVL layer 2 project" title="Arbitrum - Story about most-TVL layer 2 project" target="_blank" rel="" class="">Arbitrum's TVL</a> outperforms similar competitors like <a href="https://www.builder.news/project-review/optimism-op-a-layer2-scaling-solution-for-ethereum-applications" alt="Optimism (OP) - A Layer-2 scaling solution for Ethereum applications" title="Optimism (OP) - A Layer-2 scaling solution for Ethereum applications" target="_blank" rel="" class="">Optimism</a>.</p><h3>DeFi</h3><p dir="ltr">Arbitrum ecosystem also build several core DeFi projects such as:</p><ul><li><p dir="ltr">Arbiswap: provides fundamentals similar to Uniswap&nbsp;</p></li><li><p dir="ltr">L1, L2 bridge: converts Arbitrum Rollup to Ethereum.&nbsp;</p></li><li><p dir="ltr">AARBE: Dentralized Lending Pool which supports flash loans.</p></li><li><p dir="ltr">FakerDAO: MakerDao on Arbitrum.</p></li></ul><p dir="ltr">Besides, Arbitrum is also actively absorbing dApps on Ethereum, a total of 41 projects, which stand out with some names such as: Bancor, Bounce and MCDEX.&nbsp;</p><h2>Arbitrum highlight</h2><ul><li><p dir="ltr">EVM compatibility: Arbitrum, like other layer 2 solutions built on top of Ethereum, is highly EVM-compatible at the basic code level. To function on the Optimistic Rollups, Arbitrum cryptographers merely need to migrate the code with minor changes.</p></li><li><p dir="ltr">Adopted in various platforms: <a href="https://www.builder.news/crypto-insights/all-about-uniswap" alt="Adequate understanding about Uniswap" title="Adequate understanding about Uniswap" target="_blank" rel="" class="">Uniswap</a>, Curve, SushiSwap, Aave, and other widely used Ethereum protocols are adopting Arbitrum within their platforms. This is a clear indication that it is being adopted by a large number of Ethereum's main participants.</p></li><li><p dir="ltr">High level of permissionless and security: Arbitrum retains the inherited security of the Ethereum network while maintaining a high level of decentralization. It provides users with a similar but improved experience to the Ethereum network.</p></li></ul><h2>Arbitrum roadmap</h2><ul><li><p dir="ltr">May 2021: Beta Mainnet.</p></li><li><p dir="ltr">August 2021: Mainnet.</p></li><li><p dir="ltr">Q1 2022: Sidechain Support.</p></li></ul><p dir="ltr">Arbitrum's scaling solution is already operational without interruption, and the ecosystem is well-developed, with over 80 Dapps running on the mainnet. Since layer 2 adoption is unavoidable for the Ethereum network, the number is still rapidly increasing. Many crypto-native developers are likely to create high-quality protocols and concepts on Arbitrum.</p><p dir="ltr">Every new smart contract ecosystem provides a plethora of fresh ideas and underlying prospects for both crypto veterans and newcomers. Notably, Arbitrum has reached maturity, providing several investment options to both institutional and individual investors.</p><h2>Arbitrum founders and investors</h2><h3>Founders</h3><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed2f5beabf2d35a8e6023f659fee92.jpg" alt="arbitrum founders" title="arbitrum founders" width="600" height="234"></p><ul><li><p dir="ltr">Steven Goldfeder is the Co-Founder and CEO of Offchain Labs, the team behind Arbitrum. He received his PhD from Princeton University, where he focused on cryptography and cryptocurrency. He is a co-author of the major textbook on cryptocurrencies, Bitcoin and Cryptocurrency Technologies.</p></li><li><p dir="ltr">Ed Felten is the Co-Founder and Chief Scientist of Arbitrum. He is known as a Princeton University Professor of Computer Science and Public Affairs and the founding Director of Princeton's Center for Information Technology Policy.</p></li><li><p dir="ltr">Harry Kalodner is the Co-Founder and CTO of Arbitrum. He is a PhD (Doctor of Philosophy) candidate at Princeton University, where he works with professor Arvind Narayanan. His study focuses on cryptocurrency economics, anonymity, and incentive compatibility. He created BlockSci, a cryptocurrency research tool and Bitcoin mining technique simulator.</p></li></ul><h3>Investors</h3><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed2f5beabf31cba8e6023f659fee92.jpg" alt="arbitrum investors" title="arbitrum investors" width="600" height="335"></p><p dir="ltr">Arbitrum's major development contractor is Offchain Labs, which received a total of $123.7M in three financing rounds between 2019 and 2021.</p><ul><li><p dir="ltr">Seed round in 2019: Pantera Capital and other investors led a $3.7 million round in this period. (Compound VC, Raphael Ouzan of Blocknation, Jake Seid, and unnamed ones).</p></li><li><p dir="ltr">Seed round in 2021, including series A in April 2021 and series B in August 2021: Offchain Labs announced a $120 million fundraising round headed by Lightspeed Venture Partners. Other Offchain Labs investors included billionaire and Shark Tank presenter Mark Cuban, as well as Polychain Capital, Redpoint Ventures, Pantera Capital, and Alameda Research, Ribbit Capital.</p></li></ul><h2>Arbitrum social channels</h2><ul><li><p>Website:&nbsp;<a href="https://bridge.arbitrum.io/" target="_blank">https://bridge.arbitrum.io/</a></p></li></ul><ul><li><p>Twitter:&nbsp;<a href="https://twitter.com/arbitrum" alt="Arbitrum Twitter" title="Arbitrum Twitter" target="_blank" rel="nofollow" class="">https://twitter.com/arbitrum</a></p></li><li><p>Discord:&nbsp;<a href="https://discord.com/invite/ZpZuw7p" target="_blank">https://discord.com/invite/ZpZuw7p</a></p></li></ul><div class="pr-block-special"><strong>Disclaimer:</strong><br>This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name</div><p><br></p>

Arbitrum is known as the best Layer 2 scaling solution, which stands out due to its adequate ecosystem. Let's discover it through this article!

Arbitrum ecosystem review: The best Layer 2 scaling solution