The Arbitrum network is rapidly becoming famous as decentralized and scalable options for launching blockchain-based projects. The project has witnessed an increase in the rate of adoption as the result of how the technology behind it has advanced and the way in which it was structured has enabled developers to build different projects on the ecosystem.
Decentralized apps (DAPPs) can be readily created and integrated into the Arbitrum ecosystem because of the system’s ability to establish a sidechain that is completely compatible with the Ethereum Virtual Machine (EVM). With a latency of fewer than 0.1 seconds, Arbitrum can execute transactions at a rate that is far faster than the Ethereum mainnet.
The subsequent paragraphs will be making key emphases on the important things you will need to know about Arbitrum, what is all about, how it works, and the fastest projects growing under the Arbitrum network.
What Is Arbitrum?
Arbitrum is one of the major layer 2 scaling solutions for the Ethereum ecosystem, which was programmed to provide developers with a more scalable, swift, and effective ecosystem for building decentralized applications (DAPPs) on the Ethereum blockchain.
Arbitrum was created by Ed Felten, Harry Kalodner, and Steven Goldfeder. The layer2 network’s development and maintenance are handled by the company Offchain Labs, which the three Co-founders invented. The Arbitrum platform holds about 52.5% of Rollups market shares, and as of February this year, it has a total value locked (TVL) of more than $3.4 Billion. Ethereum smart contracts and decentralized finance (DAPPs) may run more in a quick way and less fee via the help of Arbitrum.
How Does Arbitrum Work?
Optimistic Rollups are the underlying technology behind the Arbitrum ecosystem. It is a layer 2 technology that allows less fee and fast transactions on the Ethereum blockchain. In simple term, Arbitrum process transactions off-chain by taking the snapshot of the Ethereum network.
The solution keeps the decentralization and security of the Ethereum network while enduring that all transactions are safe and legit by using a process known as Fraud-Proofing. This can be accomplished by enabling users to oppose any suspicious transaction and get compensated for doing so, and also serving as a source of motivation to protect the system.
Examples Of Fastest Growing Projects Built On The Arbitrum Network
1. Radiant Capital (RDNT):
Radiant Capital is a well-liked Defi protocol on the Arbitrum blockchain that facilitate assets lending and borrowing across chains. The DAPPs intends to become the first Omnichain Money Market, enabling users to deposit any significant crypto asset on any significant blockchain and borrow different kinds of crypto assets across numerous blockchains.
2. Camelot Token (GRAIL):
This has a dual-AMM design to facilitate volatility and stable token swaps. Camelot ecosystem is a community-driven DEX built on the Arbitrum network. The unique approach to liquidity used by Camelot DEX, which is based on Non-Fungible staked positions and provides better effective control of locks on staked positions, improved the efficiency of capital, and versatility, set it apart from its rivals. The Arbitrum ecosystem consisted of launched mechanism for launching their tokens and raising funds for new projects.
3. Synapse (SYN):
Leading layer 1 and 2 blockchains are linked together by Synapse, a cross-chain communication network. It’s a platform that enables the development of cross-chain apps and the smooth transfer of native assets between several blockchain networks. Synapse has a message Router which allows smart contracts from one blockchain to connect with another blockchain.
4. Dopex (DPX):
This is a decentralized exchange for options built on the Arbitrum ecosystem. It is a Defi platform that provides high liquidity for minimum loss and maximum gain for option buyers. By using covered calls or cash-secured puts to provide option liquidity, users can generate passive income. Through the Dopex liquidity pool, option traders can easily and swiftly transact their tokenized positions as profits.
5. Gains Network (GNS):
Gains Network is building an advanced Defi ecosystem on Arbitrum and Polygon which are the two of the most famous layer 2 solutions of the Ethereum ecosystem. The project is developing gTrade, a reliable, liquid, accessible, and as well effective decentralized ecosystem for leveraged trading. ERC-20 utility token GNS and the ERC-721 NFTs power the operations of Gains Network and the gTrade protocol. It also decentralized ownership via income capture, and will eventually make it possible for decentralized governance through them.
6. GMX (GMX):
This is a decentralized perpetual crypto exchange that was programmed on the Arbitrum ecosystem which is an unrestricted trading platform for other cryptocurrencies such as; $BTC, $AVAX, $ETH, etc. The platform is one of the famous Defi exchanges on the Arbitrum network. It supports zero-price impact trades and low exchange fees.
7. Magic (MAGIC):
This project was developed exclusively for metaverse projects. It is a decentralized treasure NFT ecosystem on the Arbitrum ecosystem. Each project on the treasure market uses MAGIC in its individual metaverse, with each community creating its own history and storytelling for this resource.
8. Arbitrove (TROVE):
This is an Arbitrum project, a yield-bearing index and strategy vault protocol. It has a governance token called TROVE.
9. Zyberswap (ZYB):
Zyberswap is the earliest decentralized exchange project on the Arbitrum ecosystem that used an automated market-maker (AMM). Comparing Zyberswap with other DEX, it enables low swapping fees and therefore is the most preferable on the ecosystem when carrying out transactions on the Arbitrum ecosystem. It offers rewards to users through staking and yield farming.
10. Vesta Finance:
On Vesta Finance, users can lock up collateral and issue their Vesta stablecoin VST to their own Ethereum address using the Vesta Finance collateralized debt platform on the Arbitrum blockchain. The platform was built to have much collateral constantly. The token can be traded freely and are destroyed if a vault loan has been paid.
With a perfect idea for numerous modern projects, the Arbitrum ecosystem has emerged as a revolutionary in the blockchain space. The 10 most rapidly growing projects on the Arbitrum network demonstrate the potential and versatility of the Arbitrum ecosystem, ranging from supply chain solutions and decentralized social media down to Decentralized finance and NFTs marketplaces.
It is possible that as the blockchain advances, it will likely attract more innovative projects that will influence the whole cryptocurrency industry as well as the future of blockchain technology.