Arbitrum: Beyond the Airdrop, Important Facts you Should Know.

Arbitrum has been trending in crypto circles in recent days because of the excitement around the ongoing $ARB airdrop. Hence, this seems like a good time to learn some interesting facts about Arbitrum. But before we dive in, we’d like you to know that:

Thresh0ld Supports Arbitrum.

Our clients can: 

-hold $ARB and Arbitrum-based tokens.

-allow their users send, receive and swap $ARB and Arbitrum-based tokens.

-interact with Arbitrum smart contracts and DeFi protocols via DeFiBridge using wallet connect.

With that timely announcement out of the way, this article will explore the key features of Arbitrum, its potential impact on the Ethereum ecosystem and share some information on claiming the $ARB airdrop. 

Now, let’s get into it!

Arbitrum is a Layer 2 scaling solution for Ethereum that promises to revolutionize the network. Developed by Offchain Labs in 2021, Arbitrum is a powerful and secure platform that can handle mass transactions while maintaining low gas fees and fast transaction times.

What Problems Does Arbitrum Solve?

The Ethereum blockchain has issues with transaction speed, causing delays and inconvenience, especially for dApps that require real-time transactions.  Two proposed solutions are sharding, which splits the chain into multiple shards, and off-chain data confirmation, which relays smart contracts to an off-chain solution that confirms and adds them to the chain later using rollup solutions. 

However, sharding is a long and complicated process, so off-chain solutions like rollups are a more immediate solution for faster transaction times. Rollups performed by layer2 chains like Arbitrum allow for real-time confirmation with the same level of security as directly confirmed transactions on the Ethereum main chain.

How Does Arbitrum Work? Arbitrum’s Optimistic Rollup Solution

There are two types of transaction rollup chains with different security models: zero-knowledge rollups and optimistic rollups. Zero-knowledge rollups perform off-chain computations and submit summary data with validity proof to the layer1 chain. Optimistic rollups submit data assuming it is correct, with validity checked only if challenged, using a fraud-proof on the changed data. 

Arbitrum operates as an optimistic rollup blockchain network that accepts data as valid by default. This gives it an edge over zero-knowledge layer2 chains.  Optimistic Rollup works by batching multiple transactions into one transaction and submitting them to the Ethereum network. Once the transactions are verified, the state of the Ethereum blockchain is updated to reflect the changes. This allows for faster transaction times and lower fees, as most of the computation is done off-chain. 

In addition, optimistic rollups work seamlessly with the Ethereum Virtual Machine (EVM), making it easy for layer1 applications to connect with Arbitrum and benefit from faster confirmation times.

Key Features of Arbitrum

Arbitrum has several key features that make it a compelling layer2 scaling solution for Ethereum. These include:

  1. High throughput & Improved Scalability: Arbitrum can process up to 40,000 transactions per second (TPS), significantly higher than the current throughput of the Ethereum network at a mere 14 TPS. 
  2. Low latency: Arbitrum has a latency of less than 1 minute, which means that transactions are confirmed quickly and efficiently. This low latency and high throughput make it possible for Ethereum to support more users and applications, leading to greater adoption.
  3. Low gas fees: Arbitrum uses gas fees significantly lower than those on the Ethereum network, making it more affordable for users to transact on the platform. This in turn attracts more users.
  4. Compatibility with Ethereum: Arbitrum is built on top of the Ethereum blockchain, which means it is fully compatible with existing Ethereum smart contracts/tools and also enjoys easy access to a large ETH developer community.
  5. Security: Arbitrum being a layer 2, enjoys the security of the Ethereum base layer which is built on a combination of consensus mechanism, cryptography, smart contract security, and a decentralized network architecture. These elements work together to ensure that the network is secure, reliable, and resistant to attacks.

Checking Eligibility for the $ARB Airdrop

Arbitrum’s airdrop of its governance token- $ARB- kicked off a couple of days ago and eligible users have 6 months within which to claim their tokens. Eligibility is determined by transactions/activities carried out on Arbiturm. While on the Arbitrum Foundation official homepage, anyone with an Ethereum wallet can check their eligibility by clicking the ‘connecting wallet” button and following the prompts. $ARB functions as a governance token on the network. It is also used for staking, providing liquidity & paying transaction fees.

In Conclusion

Arbitrum has the potential to impact the Ethereum ecosystem significantly. Improving scalability and reducing transaction fees could attract more users and applications, leading to increased adoption and value for the Ethereum network. Additionally, Arbitrum’s compatibility with existing Ethereum dev tools and smart contracts will make it easier for developers to build and deploy applications, further increasing its potential.



THRESH0LD offers a single, simple-to-integrate API that helps digital asset businesses such as crypto exchanges, payment processors, hedge funds, NFT Marketplaces and OTC solutions cut transaction fees, save time with wallet automation, and enhance security. THRESH0LD MPC supports 44 blockchain protocols and a DeFiBridge that enables swaps across thousands of assets.

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