Layer2 inventory series: the secret of Arbitrum to stand out

I believe everyone has heard of Arbitrum . It is an ETH Layer2 project based on Optimistic Rollup technology developed by the Off Chain Labs team.

Since its mainnet, Arbitrum One, went live, its TVL has experienced a rapid rise, surpassing $2.2 billion at one time.

Not only that, many top projects on the ETH mainnet have also been launched on Arbitrum, such as Sushiswap , 1INCH , Uniswap , Curve, and Balancer, making its DeFi ecosystem increasingly complete.

Layer2 inventory series: the secret of Arbitrum to stand out

On the official website, the projects supported by Arbitrum are displayed

What is Optimistic Rollup?

So far, Arbitrum is the best developed among all L2 projects based on Optimistic Rollup principles. So what exactly is Optimistic Rollup?

In the previous article, we have explained the concept of Rollup, and Optimistic Rollup, as one of the Rollup solutions, its underlying logic is also very clear.

Layer2 inventory series: the secret of Arbitrum to stand out

It is nothing more than packaging a series of transactions, moving the specific calculation process to the chain, and regularly submitting all transaction records and state change results to the main chain, thereby reducing the computational pressure of the main chain nodes.

The difference between Optimistic Rollup and other Rollup solutions is that it uses different methods to prevent perpetrators from submitting incorrect state changes to the main chain and prevent perpetrators from “frauding” assets from the Layer 2 network.

The method adopted by Optimistic Rollup is fraud proof. It means that the verifier signs on the chain and locks the deposit guarantee “state A will become state B after this series of transactions.”

Subsequently, during a period of challenge period (generally 7 days), if a challenger proposes that “the result guaranteed by the verifier does not match the result of the actual transaction execution” and provides evidence, then the wrong transaction result will be rolled back and challenged The verifier can also get the deposit pledged by the verifier.

This is also the origin of “Optimistic” in “Optimistic Rollup”, that is, before the challenger submits an appeal and is confirmed that the challenge is valid, the node believes that the state change guaranteed by the verifier is correct (this is an optimistic attitude ).

Advantages and disadvantages of Optimistic Rollup

The advantage of Optimistic Rollup is that it is compatible with almost any complex smart contract on the ETH mainnet.

In other words, developers of ETH mainnet projects can easily deploy their projects to Layer 2 based on Optimistic Rollup.

Layer2 inventory series: the secret of Arbitrum to stand out

However, its shortcomings are also very obvious. The 7-day challenge window is too long, and it takes too long for users’ assets to return to the main chain from Layer 2 to arrive, which is unacceptable for some users.

At the same time, because the security of Optimistic Rollup is guaranteed by the verifier’s deposit, not specified by the code, there are still theoretical security loopholes.

However, with its excellent compatibility, Optimistic Rollup is still the mainstream Layer 2 solution. After the market weighed the pros and cons, a lot of funds were still transferred to Arbitrum.

Everyone can’t help but wonder, how can Arbitrum stand out from the crowd of Optimistic Rollup projects?

The first point is that the Arbitrum One mainnet has not issued coins, and there is the possibility of airdrops for early users (which is also the reason why we recommend early interaction).

The second point, Arbitrum uses the “interactive fraud proof”, that is, the “Multi-Round Succinct Fraud Proofs” technology, which can reduce the workload of the arbitration node in the event of a dispute, reduce verification costs and improve efficiency.

The third point is that in addition to many big-name DeFi projects deployed on Arbitrum, the native “earth dog” project on Arbitrum has also attracted a lot of short-term funds to fight.

Layer2 inventory series: the secret of Arbitrum to stand out

At present, although the funds poured into the Arbitrum One mainnet have declined and the popularity has declined, as one of the leading projects in the Layer 2 field, we still recommend ordinary users to transfer small amounts of funds to interact on the Arbitrum One mainnet.

First, you can experience the faster transaction speed and lower gas fee of the Layer 2 network; second, you can gain potential airdrop opportunities.

At least in the short and medium term, Layer 2 is one of the main means to improve the throughput of the ETH network in the days when ETH 2.0 is in the foreseeable future.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/layer2-inventory-series-the-secret-of-arbitrum-to-stand-out/
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