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Arbitrum Foundation

120
Funding: Series B: $120 million

Arbitrum is a layer 2 scaling solution for Ethereum designed to increase transaction throughput and reduce gas fees while maintaining the security guarantees of Ethereum’s mainnet. It uses an Optimistic Rollup architecture, which batches multiple transactions off-chain and submits a compressed proof back to the Ethereum mainnet. This approach allows developers to build scalable decentralized applications (dApps) that can handle high volumes of user activity without compromising decentralization or security.

Developers interacting with Arbitrum can deploy smart contracts using the same Solidity language and Ethereum Virtual Machine (EVM) compatibility they are familiar with. This means existing Ethereum tools, libraries, and wallets work seamlessly on Arbitrum, enabling a smooth developer experience and easy porting of Ethereum dApps. Arbitrum also supports standard Ethereum developer tools like Hardhat, Truffle, and Remix, facilitating debugging and deployment workflows.

One key feature for developers is Arbitrum’s fraud-proof system. Transactions are considered valid by default, but anyone can challenge them by submitting a fraud proof if they detect an incorrect state transition. This challenge mechanism enforces the integrity of the layer 2 state and ensures trustless verification through on-chain dispute resolution. Developers should be aware of the challenge period latency when designing applications requiring fast finality.

Arbitrum’s ecosystem has grown rapidly, with numerous projects and decentralized finance (DeFi) platforms integrating the network to benefit from lower fees and faster confirmations. The platform is actively maintained and updated by Offchain Labs, with ongoing improvements in usability, throughput, and interoperability with Ethereum. For developers looking to build scalable dApps with Ethereum-level security, Arbitrum provides a powerful and developer-friendly environment.

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