The surge in activity on Arbitrum indicates genuine interest in the platform and its potential to provide a cheaper and faster alternative to Ethereum, marking a major milestone in the effort to scale the world’s second-largest blockchain.
Arbitrum Marks Major Milestone in Scaling Efforts
Arbitrum, a Layer 2 blockchain, has surpassed Ethereum in daily transactions for the first time, marking a significant milestone in the effort to scale the world’s second-largest blockchain.
On February 21st, Arbitrum processed 1.1 million transactions, around 20,000 more than Ethereum. The surge in activity in Arbitrum’s ecosystem has been responsible for this achievement. The platform’s activity has skyrocketed this month, with the number of transactions, transacting addresses, and dollar value of Ether bridged to Arbitrum doubling since Feb. 1.
Arbitrum and other Layer 2 blockchains, known as rollups, batch and compress user transactions before appending them to the Ethereum blockchain. This enables users to use Ethereum while avoiding its high transaction fees and sluggish execution.
Earlier this week, Steven Goldfeder, Arbitrum co-founder and CEO, told The Defiant that the lower transaction fees were the point of what they were doing. Ethereum developers envision a “rollup-centric” future, making the blockchain fast and cheap enough to accommodate billions of users and replace legacy institutions such as banks.
Goldfeder believes the surge can be attributed to the genuine interest in Arbitrum and the applications developers have built there. The surge can also be attributed to an airdrop that had likely seeded organic activity on Arbitrum.
However, Goldfeder believes that the surge in activity is becoming a network effect for DeFi to launch on Arbitrum, with the platform becoming the second most popular blockchain for traders who use decentralized exchanges, having recently surpassed BNB. Arbitrum’s total value locked (TVL) in the platform has doubled since the beginning of the year, to $2.2 billion.
What is Arbitrum:
Arbitrum is an Ethereum layer-2 network that enables developers to build and deploy highly scalable smart contracts at low cost. You can use Arbitrum chains to do all the things you do on Ethereum — use Web3 apps, deploy smart contracts, etc., but your transactions will be cheaper and faster. The flagship product for the team, Arbitrum Rollup, is an Optimistic rollup protocol that inherits Ethereum-level security.
Source : bsc.news
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