Thread by @mt_1466

A quick one on @arbitrum #Nitro

- What is it?
- How is it different?
- What are the tradeoffs? ( bc remember EVERYTHING is a tradeoff)
- Should you care?
- and a little $ARBI airdop juice

Arbitrum is an optimistic rollup (OP) L2 built by @OffchainLabs.

The currently-live implementation is called Arbitrum One and is the most successful rollup to date (measured by TVL).

While both are Optimistic rollups, Arbitrum has some key differences from its counterpart, Optimism.

@optimismFND #OVM 2.0 is EVM-equivalent, running directly inside the #EVM, while Arbitrum One is only EMV-compatible.

This reduces code complexity and audit surface for Optimism.

Arbitrum's AVM lacks EVM-equivalence because it’s consciously optimized for more compact fraud proofs but at the expense of implementation complexity.

So in comes Nitro...

1) Nitro helps Arbitrum adopt popular languages and tools such as #WASM, #Geth, and Golang, allows #Arbitrum to increase transaction speed 20-50x, and lowers fees by an entire order of magnitude.

The upgrade will replace the current #AVM with a WASM-Geth combo in which interactive fraud proofs execute over WASM, and the node software runs a Geth-equivalent codebase, making it easier for more Ethereum developers to onboard onto Arbitrum.

2) Nitro is a fully built-out production implementation of Arbitrum Nitro including fraud proofs, the sequencer, token bridges, and advanced calldata compression.

Nitro enables faster finality and greater throughput via efficiencies in calldata compression. In particular, Arbitrum switches from a home-made method of compressing call data to a new algorithm called Brotli.

It's estimated that Nitro could increase capacity by ~7x, cut transaction fees by ~25%, and by separating execution from proving, make dispute resolution more efficient, too!

While nothing’s official, an eventual Arbitrum token (ARBI) is suspected.

Many believe one of the factors for qualifying to the airdrop will be to participate in the upcoming Arbitrum Odyssey campaign,

Odyssey is a month+ initiative in which users earn exclusive NFTs as rewards for interacting with the Arbitrum ecosystem in specific ways, such as:
Bridging assets
Providing liquidity on bridges and DEXes
Participating in governance
Minting #NFTs

That's a wrap!

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