Thread by @Cov_duk

#Arbitrum 101: #ETH on Nitro

Here's your everything guide to Arbitrum, ETH's fast, low cost scaling solution.

A thread🧵👇

2. ETH is great. We love ETH. But ETH has some flaws. It sucks at scalable.

Cue The Scalability trilemma

The Scalability trilemma that all blockchains face is that they can only choose 2 out of 3: scalability, decentralization and security.

3. ETH is secure and decentralized. But it is not scalable. Gas fees have become super pricey and the network is getting clogged up.

A lot of people are trying to solve these problems in different ways. You’ve alt L1s like AVAX that have found ways to be scalable.

4. You also have ETH scaling solutions.

#Arbitrum is a scaling solution that sits on top of the base layer, in this case ETH, that has become very popular lately.

5. #Arbitrum is low cost and fast. Essentially, Arbitrum relays all the info to the Eth blockchain.

ETH can process 14 transactions per second, Arbitrum can process process 40,000 TPS at a cost of a few cents.

6. The advantage of this is that a chain need only process 1 transaction.

This makes it very fast ad allows multiple transactions to be confirmed at once.

7. An optimistic rollup is a specific type of rollup that assumes that the transactions contained within the rollup are optimistic or valid, unless given a reason to think otherwise.

This makes things faster. If someone suspects fraud, they can challenge the transaction.

8. #Arbitrum utilizes optimistic rollups to confirm transactions on a sidechain.

A sidechain is a blockchain that is connected to a main chain (ETH).

Arbitrum bundles transactions, confirms them on the sideline and then sends the data to the main ETH chain

9. #Arbitrum uses validators to determine if transactions are valid. They have to stake ETH, which incentivizes them to act honestly. They lose their stake if they do not.

Unlike other rollups, Arbitrum does not have a token. Everything happens in eth.

10. Lately, #Arbitrum has been popping. Everyone wants the pros of ETH (network effects, community, etc) but not the scaling woes.

Arbitrum provides the best of both worlds. They’ve essentially made ETH faster. This has attracted a lot of attention from devs and teams.

11. Projects like #TreasureDAO have developed massive communities on top of the Arbitrum network.

#Arbitrum has massive potential to boost ETH and crypto’s growth.

12. Accounts to follow for #Arbitrum insights:
@ArbitrumNewsDAO @nina_rong @ArbitrumNewsDAO
@Arbitrum2day @ArbitrumDailyTK @ArbitrumGod @OffchainLabs

13. Hope that was insightful, a retweet would mean a lot. I regularly post 101s, breakdowns and deep dives. Follow to keep up.

Here are some of my past threads:
covduk.notion.site/4798517af2944e…