How does Arbitrum (ARB) work?

How does Arbitrum (ARB) work?

Arbitrum (ARB) is based on a technology known as optimistic roll-up. This technology enables smart contracts on ETH to scale by sending messages between Ethereum smart contracts and those on the Arbitrum Layer-2 chain.

In addition, Arbitrum completes transactions on the Layer-2 chain and then collects their results and saves them on the Ethereum main chain. Since the processing of transactions is not carried out on the Ethereum main chain, transactions can be completed much faster.

The basic idea here is that the Arbitrum rollup chain operates as a kind of submodule within Ethereum. Unlike Ethereum mainnet transactions, Ethereum nodes are not required to process every Arbitrum transaction. Instead, Ethereum adopts an “innocent until proven guilty” attitude towards Arbitrum. In other words, the Ethereum mainnet initially “optimistically assumes” that activities on the Arbitrum follow the rules. If a breach occurs, the claim can be challenged at Layer-1, i.e. the Ethereum mainnet. As a result, the invalid claim is ignored and the malicious party is financially penalized.

Arbitrum; Its most important feature is its ability to prove possible fraud at Layer-1, while executing transactions at Layer-2, that is, outside the Ethereum mainnet. In this way, developers benefit from high scalability; They also get the opportunity to use the strong security of the Ethereum mainnet.

This system of Arbitrum is run by validators on the network. Everyone has the right to be a fact-checker. If two validators disagree on a transaction, only one of them may be telling the truth. In such a disagreement, two validators play an interactive, call-and-response game in which they reduce their disagreement to a single computational step (think of something small and simple like multiplying two numbers). This single step is executed on Layer-1 and proves which side is telling the truth. Thus, the violation is eliminated.

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