Arbitrum has carved out a significant niche among crypto scaling solutions, particularly for Ethereum. As a Layer 2 (L2) scaling platform, Arbitrum offers unique features that not only enhance the capabilities of Ethereum but also foster an ecosystem rich with innovative projects that connect to other ecosystems – including Bitcoin.
Here's how Arbitrum stands out.
1. High Throughput with Nitro Upgrade
The introduction of Arbitrum Nitro has significantly enhanced the performance of the network. Nitro's improvements in transaction speed and efficiency set Arbitrum apart by allowing for up to 40,000 transactions per second, far surpassing many other chains in terms of throughput. This upgrade is particularly beneficial for high-volume applications.
2. Flexible Developer Tools and Stylus
Arbitrum provides developers with Stylus, a toolset that extends beyond traditional Solidity compatibility, allowing for smart contract development in languages like Rust and C++, which can lead to more performant contracts. This flexibility gives developers more options for optimizing their applications.
3. Arbitrum Orbit for Custom Chains
Arbitrum's Orbit allows developers to create their own Layer 3 chains or custom chains on top of Arbitrum, offering a unique level of customization and scalability. This feature enables developers to tailor their blockchain environment specifically to their project's needs, whether for governance, data privacy, or performance, which is not as readily available or as advanced in other L2 ecosystems.
4. Strong Community Governance with ARB Token
The governance model with the ARB token gives token holders significant control over the network's future, including protocol upgrades, foundation decisions, and fund allocations. This level of community involvement in governance is more comprehensive than in many other L2 platforms, where governance might be less direct or less influential.
5. Decentralization Through BoLD
The Bounded Liquidity Delay (BoLD) system in Arbitrum allows for permissionless validation, pushing the platform towards greater decentralization. This contrasts with some L2s where validation might be more centralized or controlled, offering Arbitrum users and developers a more secure and open environment.
6. Popularity with Major DeFi Protocols
Arbitrum has not only attracted but also deeply integrated with major DeFi protocols like Balancer and dYdX, showcasing its utility and robustness. These integrations demonstrate trust in Arbitrum's infrastructure for handling complex financial operations, setting it apart from other L2s which might still be in earlier stages of adoption by such high-profile projects.
Arbitrum is also the top Ethereum L2 for UniSwap v4 TVL.
7. Bitcoin Support With BOS
Arbitrum has over 8000 Wrapped Bitcoin (WBTC) circulating on its network, surpassing every chain that supports WBTC aside from Ethereum L1. That means it's already trusted by Bitcoiners as a DeFi Layer. Now Arbitrum will help take trustless bitcoin scaling to the next level as it connects to BOS, the infrastructure allowing for trustless Bitcoin bridging and interoperability throughout all of crypto. Bitcoiners can access *real* scaling + DeFi on Arbitrum without trusting a custodian!
Arbitrum is leading Ethereum L2 for good reason. With BOS, it will be a welcome ally of the Bitcoin ecosystem as well.
