Arbitrum (ARB), launched in March 2023, is the governance token of the Arbitrum ecosystem, an Ethereum Layer 2 (L2) scaling solution using optimistic rollups. Developed by Offchain Labs, Arbitrum enhances Ethereum’s speed and cost-efficiency by processing transactions off-chain and batching them to the mainnet. ARB powers governance, staking, and protocol incentives, supporting a $2.6 billion total value locked (TVL) ecosystem, ranking #7 among blockchains.

Key Features

  • Optimistic Rollups: Executes transactions off-chain with fraud proofs, enabling ~10,000 transactions per second (TPS) and low fees.
  • Ethereum Security: Inherits Ethereum’s proof-of-stake security, ensuring trustless operations.
  • Ecosystem: Hosts DeFi (e.g., GMX, Uniswap V3), NFTs, and gaming, with $100 billion in DEX volume in 2025.
  • Chain Abstraction: Supports cross-chain interactions via bridges and Arbitrum Nova for high-throughput dApps.

ARB Token

  • Purpose: Used for governance, staking, and transaction fees in the Arbitrum DAO.
  • Supply: Circulating supply of ~4.9 billion ARB, with a max supply of 10 billion.
  • Contract Address: 0x912ce59144191c1204e64559fe8253a0e49e6548 (Ethereum, addable to MetaMask), coingecko cmc.

Who Are the Founders of Arbitrum?

Arbitrum was developed by Offchain Labs, founded by Ed Felten, Steven Goldfeder, and Harry Kalodner, former Princeton University researchers with expertise in computer science, cryptography, and blockchain. The New York-based team launched Arbitrum One in 2021, transitioning to a decentralized DAO structure in 2023.

What Makes Arbitrum Unique?

ARB and Arbitrum stand out for their scalability and ecosystem:

  • Low Fees: Offers transactions 10x cheaper than Ethereum L1, with 600ms finality.
  • Arbitrum Nitro: Enhances performance with faster block times and EVM compatibility.
  • Arbitrum Orbit: Enables developers to deploy custom L3 chains using languages like Rust and C++.
  • DeFi Dominance: Hosts GMX ($300B lifetime trading volume) and other protocols, driving adoption.

ARB Network Upgrades (2025)

  • Arbitrum Orbit Expansion: Launched L3 solutions for gaming and DeFi, increasing throughput.
  • Chain Reaction Initiative: Spotlighted apps like GMX and Rho, boosting ecosystem visibility.
  • Validator Growth: Expanded institutional validators for decentralized security.

How Is ARB Secured?

ARB and the Arbitrum ecosystem are secured through:

  • Ethereum PoS: Inherits Ethereum’s proof-of-stake security for rollup finality.
  • Optimistic Rollups: Uses fraud proofs with a challenge period to ensure transaction validity.
  • Arbitrum DAO: ARB holders govern upgrades and validator policies.
  • Forced Inclusion: Ensures sequencer reliability with replacement protocols.

Conclusion

Arbitrum (ARB) powers a leading Ethereum L2 blockchain, offering fast, low-cost transactions with robust security. Its Orbit L3 solutions, vibrant DeFi ecosystem, and DAO governance make it a scalability leader.