It is a halal crypto to trade.
What is Arbitrum?
Arbitrum (ARB) is the native token of the Arbitrum One and Arbitrum Nova chains, both Layer 2 scaling solutions built on top of the Ethereum blockchain. It facilitates faster and cheaper transactions while inheriting security from the Ethereum mainnet.
Key Features of Arbitrum
- Scalability: Arbitrum utilizes a rollup technology called Optimistic Rollups to process transactions off-chain (Layer 2) and periodically settle them on the Ethereum mainnet, significantly reducing congestion and transaction fees.
- Security: Arbitrum inherits the security of the Ethereum blockchain through its rollup mechanism.
- Smart Contract Compatibility: Arbitrum is compatible with existing Ethereum smart contracts, allowing developers to easily migrate their dApps to the Arbitrum network.
Uses of ARB Token
- Network Fees: ARB is used to pay for transaction fees on the Arbitrum One and Arbitrum Nova chains.
- Governance (Future): While not fully implemented yet, ARB token holders may have the right to participate in on-chain governance proposals to shape the future of the Arbitrum ecosystem.