ENEDEX multichain is coming very soon. Multiple blockchain has been prepared for seamless swapping experience across cryptoverse. But before the release of ENEDEX multichain, let’s learn more about the blockchains that potentially will be in ENEDEX multichain. This time, let’s deepdive on yet another Ethereum’s popular alternative, the Arbitrum blockchain.
What is Arbitrum?
Enter arbitrum, a type of blockchain that was designed to address scaling limitations. Arbitrum is a scalable, low-cost blockchain that is capable of supporting a wide range of transactions. It uses a technique called “off-chain scaling” to enable faster and cheaper transactions, while still maintaining the security and transparency of a traditional blockchain.
One of the key advantages of arbitrum is its ability to support smart contracts. A smart contract is a program that is stored on the blockchain and automatically executes when certain conditions are met. This can enable a wide range of applications, from supply chain management to financial contracts.
Another advantage of arbitrum is its support for privacy. Unlike traditional blockchains, which are public and transparent, arbitrum allows for private transactions that are only visible to the parties involved. This can make it useful for applications that require privacy, such as confidential financial transactions.
Features of Arbitrum
Most importantly Arbitrum doesn’t have a token. If you see anywhere offering anything to the effect of an “Arbitrum token” for trading, it’s a scam. That’s because Arbitrum One doesn’t have a native token. The rollup’s transactions are paid for in ETH, and Offchain Labs currently has no plans for a bespoke Arbitrum token.
Arbitrum uses AnyTrust Guarantee security protocol to confirm the blocks. According to this protocol, only a unanimous agreement amongst all chosen validators allows for a new block to get accepted. This means that a single disagreeing validator will cause a dispute and a suspicious block will get re-evaluated. Such a mechanism contrasts with Ethereum, where consensus is achieved based on what the majority thinks, while individual oppositions are disregarded.
Therefore, Arbitrum relies on at least one honest validator being present at any point in time. You should also remember that since validators are assigned for a particular dApp, their malicious behaviour will never effect the whole network.
Also not everybody is a validator in Arbitrum since some nodes simply compute the correct state of the chain for their own record. However, anyone can become a validator in Arbitrum by running an open source code from their local machine.
Some validators decide to stake their ETH which allows them to propose new rollup blocks. If such validator is found cheating, a portion of their stake gets burned, and some is distributed among honest validators. The size of a required stake is changing dynamically to make sure that a malicious validator will be able to cover the losses of compromised blocks.
Non- staked validators are called ‘watchtower validators’. They do not take active part in block formation but merely observe it and alarm active validators in case they notice a malicious behaviour.
About Ecosystem
As a popular scaling solution for Ethereum, no wonder Arbitrum attracted plenty of developers to build project on top of it. Here is a brief list of familiar tokens and their contract addresses that has Arbitrum version or are uniquely built only in Arbitrum :
USDC : 0xff970a61a04b1ca14834a43f5de4533ebddb5cc8
DAI : 0xda10009cbd5d07dd0cecc66161fc93d7c9000da1
UNI : 0xfa7f8980b0f1e64a2062791cc3b0871572f1f7f0
WBTC : 0x2f2a2543b76a4166549f7aab2e75bef0aefc5b0f
LINK : 0xf97f4df75117a78c1a5a0dbb814af92458539fb4
GRT : 0x23a941036ae778ac51ab04cea08ed6e2fe103614
GMX : 0xfc5A1A6EB076a2C7aD06eD22C90d7E710E35ad0a
CRV : 0x11cdb42b0eb46d95f990bedd4695a6e3fa034978
SUSHI : 0xd4d42f0b6def4ce0383636770ef773390d85c61a
SYN : 0x080f6aed32fc474dd5717105dba5ea57268f46eb
MIM : 0xfea7a6a0b346362bf88a9e4a88416b77a57d6c2a
STG : 0x6694340fc020c5E6B96567843da2df01b2CE1eb6
BADGER : 0xbfa641051ba0a0ad1b0acf549a89536a0d76472e
DPX : 0x6c2c06790b3e3e3c38e12ee22f8183b37a13ee55
BIFI : 0x99c409e5f62e4bd2ac142f17cafb6810b8f0baae
RDPX : 0x32eb7902d4134bf98a28b963d26de779af92a212
UMAMI : 0x1622bf67e6e5747b81866fe0b85178a93c7f86e3
SPA : 0x5575552988A3A80504bBaeB1311674fCFd40aD4B
CAP : 0x031d35296154279dc1984dcd93e392b1f946737b
MCB : 0x4e352cF164E64ADCBad318C3a1e222E9EBa4Ce42
Summary
With Arbitrum, consensus is achieved off- chain and only the result of that consensus is passed on to the Ethereum mainnet. Arbitrum is compatible with all languages used for Ethereum and its work remains invisible for all end users.
This and many other things explain Arbitrum’s wide adoption in the Ethereum community. Find Arbitrum based token and many more on ENEDEX Crosschain V1 that will be launched very soon!
Do you have a favorite Arbitrum-based token that you wish to see in ENEDEX crosschain V1?
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