[{"data":1,"prerenderedAt":346},["ShallowReactive",2],{"api/learn-center-post-en-what-is-arbitrum":3,"footer-en":56,"learn/cryptocurrency-guide/what-is-arbitrum-en-seo":254,"navigation-en-learn-center":259,"api/learn-categories-en":307},{"seo":4,"locale":21,"breadcrumbs":22,"excerpt":30,"featuredImage":31,"components":38,"title":5,"formattedPublishedAt":49,"geofencings":50,"category":51,"pagination":53,"campaignExternalId":7},{"title":5,"metaTitle":5,"metaDescription":6,"keywords":7,"metaRobots":7,"structuredData":8,"metaImage":9,"metaSocial":17,"canonicalURL":7,"localizations":18},"What is Arbitrum (ARB)? ","Discover Arbitrum, a Layer 2 solution that turbocharges Ethereum's capabilities. Learn how it reduces fees, speeds up transactions, and unlocks a world of decentralized applications (dApps).",null,{},{"url":10,"mime":11,"ext":12,"width":13,"height":14,"name":15,"alt":16},"bitstampImageUrl/what_is_arbitrum_3030eeba28_e3011dbd20.png","image/png",".png",900,451,"what_is_arbitrum_3030eeba28.png","",[],[19],{"pathname":20,"locale":21},"/learn/cryptocurrency-guide/what-is-arbitrum/","en",[23,27],{"id":24,"text":25,"url":24,"asUrl":26},"/learn/cryptocurrency-guide/","Cryptocurrency guide",true,{"id":28,"text":5,"url":20,"asUrl":29},"what-is-arbitrum",false,"\u003Cp>Arbitrum is a Layer 2 scaling solution for Ethereum, designed to solve the blockchain trilemma of speed, efficiency, and affordability thanks to its use of optimistic rollups. \u003C/p>\n",{"url":32,"mime":33,"ext":34,"width":35,"height":36,"name":37,"alt":16},"bitstampImageUrl/what_is_arbitrum_a610bf096f_4999a23ab7.svg","image/svg+xml",".svg",1920,1080,"what_is_arbitrum_a610bf096f.svg",[39],{"component":40,"props":41,"content":42,"secondaryContent":46,"ctas":47,"secondaryCtas":48,"ctasNoMarginTop":29},"section.full-text",{"centered":29,"withoutSectionContainer":29},{"text":43,"width":44,"align":45},"\u003Cp>Ethereum, the second largest cryptocurrency by \u003Ca href=\"https://www.bitstamp.net/learn/crypto-trading/what-is-market-cap/\">market cap\u003C/a>, has faced several scaling challenges as it attempts to onboard new users. During periods of high activity, the blockchain tends to slow down and the fees tend to rise dramatically.  \u003C/p>\n\u003Cp>Arbitrum was created to tackle these challenges by processing transactions off-chain before settling them in batches on the main network, which significantly reduces congestion and high gas fees.  \u003C/p>\n\u003Cp>By doing so, it attempts to expand Ethereum’s capabilities by creating an environment for the creation of more complex and user-friendly decentralized applications (dApps). Arbitrum achieves this through its use of optimistic rollups, a technology that processes data away from Ethereum before submitting cryptographic proof of the data back to the main chain. Optimistic rollups, more specifically, assume submitted transactions are valid until proven otherwise. \u003C/p>\n\u003Cp>Arbitrum is fully compatible with the \u003Ca href=\"https://www.bitstamp.net/learn/blockchain/what-is-the-ethereum-virtual-machine-evm/\">Ethereum Virtual Machine (EVM)\u003C/a>, allowing developers to migrate their Ethereum-based dapps to Arbitrum. \u003C/p>\n\u003Cp>Arbitrum’s native token, ARB, can be used to pay for these transactions on the \u003Ca href=\"https://www.bitstamp.net/learn/blockchain/what-are-layer-2-solutions/\">L2\u003C/a> and as a governance token, allowing holders to vote on the direction of the blockchain.  \u003C/p>\n\u003Ch2>Who Created Arbitrum?\u003C/h2>\n\u003Cp>Arbitrum was created in 2018 by Offchain Labs, a company founded by Ed Felten, Steven Goldfeder, and Harry Kalodner.  The co-foudners met at Princeton University, which is where the Arbitrum development started. \u003C/p>\n\u003Cp>Felten is a professor of Computer Science and Public Affairs at Princeton and was the former deputy U.S. CTO at the White House. Goldfeder holds a Ph. D. from Princeton University, where he worked at the intersection of cryptography and cryptocurrencies. Kalodner is a computer scientist who also earned a Ph.D. in Computer Science at Princeton.  \u003C/p>\n\u003Cp>Arbitrum launched its native token, ARB, in March 2023 through an \u003Ca href=\"https://www.bitstamp.net/learn/crypto-101/what-are-airdrops-in-crypto/\">airdrop\u003C/a> to early users and liquidity providers.  \u003C/p>\n\u003Ch2>How Does Arbitrum Work?\u003C/h2>\n\u003Ch3>Optimistic Rollups\u003C/h3>\n\u003Cp>Optimistic Rollups are a mechanism where Arbitrum bundles hundreds of transactions together and processes them off-chain. It then submits compressed proof of these transactions back to Ethereum.  \u003C/p>\n\u003Cp>There are several nodes that enable Arbitrum to run smoothly: \u003C/p>\n\u003Cul>\n\u003Cli>\u003Cstrong>Sequencers:\u003C/strong> Off-chain node that receives transactions, batches them, and submits the batch to Ethereum. \u003C/li>\n\u003Cli>\u003Cstrong>Validator:\u003C/strong> On-chain node that verifies the validity of transaction batches submitted by the Sequencers.  \u003C/li>\n\u003Cli>\u003Cstrong>Client:\u003C/strong> The user or application that initiates transactions on the Arbitrum network.\u003C/li>\n\u003C/ul>\n\u003Cp>The process is “optimistic” because Arbitrum assumes these bundles are valid by default. However, there is a challenge period of about 7 days where anyone can dispute a transaction if they believe it to be fraudulent.  \u003C/p>\n\u003Ch3>Arbitrum One vs. Arbitrum Nova\u003C/h3>\n\u003Cp>Arbitrum offers two distinct chains for its operations: \u003C/p>\n\u003Cul>\n\u003Cli>\u003Cstrong>Arbitrum One:\u003C/strong> The general-purpose chain that hosts most Arbitrum dapps, from \u003Ca href=\"https://www.bitstamp.net/learn/web3/what-is-decentralized-finance-defi/\">decentralized finance (DeFi)\u003C/a> protocols to \u003Ca href=\"https://www.bitstamp.net/learn/web3/what-are-nfts-non-fungible-tokens/\">NFT\u003C/a> marketplaces. \u003C/li>\n\u003Cli>\u003Cstrong>Arbitrum Nova:\u003C/strong> Designed to prioritize lower fees and higher transaction throughput, making it ideal for projects that require a seamless user experience, like gaming and social applications.\u003C/li>\n\u003C/ul>\n\u003Ch3>Nitro\u003C/h3>\n\u003Cp>In 2022, Arbitrum rolled out its Nitro upgrade, a major technical upgrade that aimed to improve the platform's performance even further.  \u003C/p>\n\u003Cp>Arbitrum Nitro improves smart contract execution, while also improving data compression techniques. This translates to lower fees for users and increased throughput, allowing the network to handle a higher volume of transactions per second.  \u003C/p>\n\u003Cp>Further, Nitro strengthens Arbitrum's compatibility with Ethereum to ensure a better developer and user experience. \u003C/p>\n\u003Ch2>How Does ARB Work?\u003C/h2>\n\u003Cp>ARB has a maximum supply of 10 billion tokens. ARB is gradually being released into circulation through a schedule that includes vesting periods for various groups, including the core team, investors, the DAO treasury, and airdrop recipients. \u003C/p>\n\u003Cp>The ARB cryptocurrency is mainly used for: \u003C/p>\n\u003Cul>\n\u003Cli>\u003Cstrong>Governance:\u003C/strong> ARB token holders can participate in the future of the network by voting on proposals related to the network's development, upgrades, and overall direction. \u003C/li>\n\u003Cli>\u003Cstrong>Transaction Fees:\u003C/strong> While ETH is the current token used to pay for transaction fees, the Arbitrum team plans to use ARB in the future.\u003C/li>\n\u003C/ul>\n\u003Ch2>Arbitrum Essentials\u003C/h2>\n\u003Cul>\n\u003Cli>Arbitrum is a Layer 2 scaling solution for Ethereum designed to improve transaction speed and reduce fees by processing transactions off-chain. \u003C/li>\n\u003Cli>Arbitrum uses optimistic rollup technology, which processes the transactions on the Arbitrum L2, batches them, and sends them to Ethereum for processing. \u003C/li>\n\u003Cli>The native token ARB empowers holders to vote on proposals and shape the network's future.\u003C/li>\n\u003C/ul>\n\u003Cp>\u003Cstrong>How to buy ARB?\u003C/strong> \u003C/p>\n\u003Cp>You can buy the ARB coin on Bitstamp by Robinhood. Sign up for a Bitstamp by Robinhood account and start trading Arbitrum today! \u003C/p>\n\u003Cul>\n\u003Cli>Buy Arbitrum (ARB) with Euro EUR \u003C/li>\n\u003Cli>Buy Arbitrum (ARB) with USD Dollar \u003C/li>\n\u003Cli>Buy Arbitrum (ARB) with USDT \u003C/li>\n\u003Cli>Buy Arbitrum (ARB) with Ethereum ETH\u003C/li>\n\u003C/ul>\n\u003Cp>Disclosure: Bitstamp by Robinhood is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. \u003C/p>\n","full","left",{"text":16},[],[],"December 5th, 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20 3868 9628","+442038689628",{},{},{"noFollow":29,"isExternal":29,"name":238,"value":239,"isEmail":29,"isPhoneNumber":26,"isText":29,"showOnDesktop":26,"showOnMobile":26,"attachment":240,"geofencings":241},"+1 800 712 5702","+18007125702",{},{},{"noFollow":29,"isExternal":29,"name":243,"value":244,"isEmail":29,"isPhoneNumber":26,"isText":29,"showOnDesktop":26,"showOnMobile":26,"attachment":245,"geofencings":246},"+352 20 88 10 96","+35220881096",{},{},{"noFollow":29,"isExternal":29,"name":248,"value":249,"isEmail":29,"isPhoneNumber":26,"isText":29,"showOnDesktop":26,"showOnMobile":26,"attachment":250,"geofencings":251},"+65 3105 1676","+6531051676",{},{},"\u003Cp>Please read the general \u003Ca href=\"/legal/risk-warning/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Risk Warning\u003C/a>, and \u003Ca href=\"/legal/uk-investment-risk-warning/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Risk Summary\u003C/a> for UK residents before investing in crypto-assets. \u003C/p>\n\u003Cp>Crypto-assets services are provided by the following Bitstamp legal entities depending on client residency: (1) Bitstamp Europe S.A., which is authorized by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg as a payment institution (licence number Z00000012) and crypto-asset service provider (licence number N00000003); Registered address: 40, avenue Monterey, L-2163 Luxembourg, Grand Duchy of Luxembourg; Registration number: B196856; (2) Bitstamp UK Ltd., which is registered with the Financial Conduct Authority (FCA) in the UK for the provision of certain cryptoassets activities under the Money Laundering Regulations (Firm Reference Number 978690); Registered address: 5 New Street Square, EC4A 3TW London, United Kingdom; Registration number: 14174243; (3) Bitstamp Ltd.with its registered address at 5 New Street Square, EC4A 3TW London, United Kingdom and registration number: 8157033; (4) Bitstamp Global Ltd., which is registered as a Virtual Asset Service Provider in the British Virgin Islands and is supervised by the British Virgin Islands Financial Services Commission (FSC); Registered address: Floor 4, Banco Popular Building, Road Town, Tortola VG1110, British Virgin Islands; Registered number: 2086429; and (5) Bitstamp Asia Pte Ltd, which is authorized by the Monetary Authority of Singapore (MAS) as a major payment institution (licence number PS20200667); Registered address: 63 Chulia Street, OCBC Centre East, #15-01, Singapore 049514; Registered number: 202016687K;\u003C/p>\n\u003Cp>Virtual currency services to US residents are provided by Bitstamp USA, Inc., which is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Licensed as a Money Transmitter by the New York State Department of Financial Services. Review a \u003Ca href=\"/legal/usa-inc/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">list of its licenses and other registrations\u003C/a> (NMLS number \u003Ca href=\"https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1905429\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">1905429\u003C/a>) for more information; Registered address: 85 Willow Road, Menlo Park, CA 94025, United States of America; Registered number: 5481543.\u003C/p>\n\u003Cp>Investment services with regards to trading in crypto derivatives are provided by Bitstamp Financial Services Ltd., which is authorized and supervised by the Slovenian Securities Market Agency (ATVP) as a MiFiD investment firm. Trading crypto derivatives carries significant risks and may result in substantial losses. Please trade responsibly and ensure you understand the associated risks. You can find more about the risks \u003Ca href=\"/legal/financial-services/general-terms-and-conditions/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">here\u003C/a>. To help you understand the risks involved we have put together a series of \u003Ca href=\"/derivatives/key-information-documents/\" target=\"_blank\" rel=\"noopener noreferrer\">Key Information Documents (KIDs)\u003C/a> highlighting the risks and rewards related to each derivatives contract. Crypto derivatives trading is not available to customers in the US, Canada, Japan and some other countries. Bitstamp Financial Services Ltd. does not provide crypto-asset services.\u003C/p>\n\u003Cp>To find out more about which Bitstamp entity you receive services from, please check the Profile/My information in your Bitstamp account. You can read more about our legal terms, policies and disclosures \u003Ca href=\"/legal/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">here\u003C/a>.\u003C/p>\n","\u003Cp>All rights reserved © 2026 Bitstamp by Robinhood. \u003Ca href=\"https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1905429\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">NMLS #1905429\u003C/a>\u003C/p>\n",{"description":6,"ogDescription":6,"ogImage":255,"twitterImage":255,"twitterSite":256,"twitterCreator":256,"twitterCard":257,"twitterTitle":5,"twitterDescription":6,"titleTemplate":258},"https://assets.bitstamp.net/msc/_ipx/enlarge_true&f_png&fit_cover&q_85&s_1200x630/bitstampImageUrl/what_is_arbitrum_3030eeba28_e3011dbd20.png","@Bitstamp","summary_large_image","%s",{"items":260,"ready":26,"platformButtonText":303,"backButtonText":304,"logInButtonText":305,"signUpButtonText":306},[261,265,269,272,275,278,281,286,289,294,299],{"headerName":262,"sidemenuName":133,"url":134,"noFollow":29,"showInHeader":26,"showInSidemenu":26,"geofencings":263,"submenu":264,"tag":16},"Institutions",{},[],{"headerName":125,"sidemenuName":125,"url":126,"noFollow":29,"showInHeader":26,"showInSidemenu":26,"geofencings":266,"submenu":267,"tag":268},{},[],"NEW",{"headerName":148,"sidemenuName":148,"url":149,"noFollow":29,"showInHeader":26,"showInSidemenu":26,"geofencings":270,"submenu":271,"tag":16},{},[],{"headerName":105,"sidemenuName":105,"url":106,"noFollow":29,"showInHeader":26,"showInSidemenu":26,"geofencings":273,"submenu":274,"tag":16},{},[],{"headerName":115,"sidemenuName":115,"url":116,"noFollow":29,"showInHeader":26,"showInSidemenu":26,"geofencings":276,"submenu":277,"tag":16},{},[],{"headerName":120,"sidemenuName":120,"url":121,"noFollow":29,"showInHeader":26,"showInSidemenu":26,"geofencings":279,"submenu":280,"tag":16},{"geofencing-uk":26},[],{"headerName":282,"sidemenuName":282,"url":283,"noFollow":29,"showInHeader":26,"showInSidemenu":26,"geofencings":284,"submenu":285,"tag":16},"Markets","/markets/",{},[],{"headerName":110,"sidemenuName":110,"url":111,"noFollow":29,"showInHeader":26,"showInSidemenu":26,"geofencings":287,"submenu":288,"tag":16},{},[],{"headerName":290,"sidemenuName":290,"url":291,"noFollow":29,"showInHeader":26,"showInSidemenu":26,"geofencings":292,"submenu":293,"tag":16},"Blog","https://blog.bitstamp.net/",{},[],{"headerName":295,"sidemenuName":295,"url":296,"noFollow":29,"showInHeader":26,"showInSidemenu":26,"geofencings":297,"submenu":298,"tag":16},"Learn","/learn/",{},[],{"headerName":300,"sidemenuName":300,"url":106,"noFollow":29,"showInHeader":29,"showInSidemenu":26,"geofencings":301,"submenu":302,"tag":16},"Get Bitstamp by Robinhood app",{},[],"Go to platform","Back","Log in","Get started",[308,312,316,320,324,328,330,334,338,342],{"title":309,"url":310,"geofencings":311},"Blockchain technology","/learn/blockchain/",{},{"title":313,"url":314,"geofencings":315},"Company profiles","/learn/company-profiles/",{},{"title":317,"url":318,"geofencings":319},"Crypto 101","/learn/crypto-101/",{},{"title":321,"url":322,"geofencings":323},"Crypto definitions","/learn/crypto-definitions/",{},{"title":325,"url":326,"geofencings":327},"Crypto trading","/learn/crypto-trading/",{},{"title":25,"url":24,"geofencings":329},{"geofencing-uk":26},{"title":331,"url":332,"geofencings":333},"People profiles","/learn/people-profiles/",{},{"title":335,"url":336,"geofencings":337},"Security","/learn/security/",{},{"title":339,"url":340,"geofencings":341},"Tutorials","/learn/bitstamp-tutorials/",{},{"title":343,"url":344,"geofencings":345},"Web3","/learn/web3/",{},1777532318549]