Arbitirum is a popular Layer-2 scaling solution for Ethereum, which offers a faster, cheaper, and more scalable infrastructure for Ethereum-based dApps. It uses Optimistic Rollup technology to process transactions off-chain and records them in batches on the Layer-1 Ethereum network.

Arbitrum aims to tackle Ethereums scalability challenges by offering a platform for dApps developers and users with lower transaction fees and higher throughput without compromising on the exemplary level of security that Ethereum is known for. The Layer-2 Arbitrum network aims to make Ethereums ecosystem more accessible and usable for everyone, taking on competitors such as Layer-1 Ethereum killers, e.g., Avalanche, BNB Chain, Solana, and other EVM-compatible chains.

Unlike other Layer-1 Ethereum competitors, developers can create custom dApps using Solidity - the same smart contract programming language used by Ethereum. This lets Ethereum-based dApps conveniently port to the Arbitrum network, enjoying a seamless migration and the experience of faster and cheaper transactions.

Arbitrum has an ambitious roadmap for 2023, which includes launching its own layer-three solution called Orbit, enabling developers to deploy programs written in popular programming languages, expanding its validator set to include more independent institutional validators, and moving its protocol to layer two with Arbitrum One.

The key question, Does Arbitrum have a token has finally been answered with the launch of Arbitrums official token in March 2023. ARB is the native token of the Arbitrum network and the governance token of the Arbitrum DAO. ARB holders can participate in the decentralized governance mechanism of the Arbitrum One and Arbitrum Nova networks, enabling community-driven DAO governance of the L2 network.

Arbitrums use of Optimistic Rollups lets the network process transactions off-chain using its network of validators. The validators are incentivized for honest behavior, speeding up the networks throughput. Any invalid or fraudulent activity by a validator can be challenged by other validators, resulting in the malicious validator losing its stake as a penalty for its actions.

The Arbitrum DAO is a decentralized autonomous organization responsible for the community-driven governance mechanism for Arbitrum One and Arbitrum Nova chains. The DAO members are holders of ARB tokens who enjoy voting power to submit proposals and vote on other users proposals to decide the future evolution of the network.

ARB token holders can also delegate their voting power to delegates within the ecosystem. Following the ARB token airdrop by the Arbitrum Foundation on March 23, 2023, users can participate in Arbitrums governance directly or via delegation.

Once Arbitrum users receive the ARB airdrops in their wallets, they can also submit applications to become an Arbitrum DAO delegate. Once selected, they can be selected as delegates by other airdrop recipients who claim their tokens.

Arbitrum was co-founded by Ed Felten, Steven Goldfeder, and Harry Kalodner, who set up Offchain Labs to devise solutions to solve Ethereums scalability challenges without compromising its security. The soft launch of the Arbitrum network via its mainnet beta launch occurred in May 2021.

The project was funded with a seed round of $3.7 million led by Pantera Capital. In April 2021, Offchain Labs raised $20 million in Series A, followed by $100 million in Series B funding in August 2021. Notable investors in Arbitrum include Lightspeed Venture Partners, Polychain Capital, Ribbit Capital, Mark Cuban, and more.

After the soft launch in May 2021, the Arbitrum mainnet was launched in August 2021. The developers added support for sidechains in Q1 2022.

Arbitrum AnyTrust was introduced in March 2022 to enable faster and cheaper Layer-2 chains with minimal trust assumptions. Its mainnet launch occurred in July 2022 and was called Arbitrum Nova and was open to the public a month later.

In March 2023, the Arbitrum Foundation announced the formation of the Arbitrum DAO and the decision to airdrop Arbitrums native token, ARB. The token would allow the Layer-2 network to become governed by its decentralized community.

The price of Arbitrum token could also strengthen as the developers add more features and roll out network upgrades that increase the networks throughput in the future. Such developments could make Arbitrum more appealing than other Layer-2 scaling solutions in the market, encouraging more developer activity on the network to drive the ARB value higher.

Arbitrum token is a promising crypto asset that offers potential benefits for investors who believe in the potential of Layer-2 scaling solutions. As Web3 adoption gains mainstream traction, the demand for networks like Arbitrum could increase. This platform offers a scalable solution for deploying real-world, efficient dApps.

With more dApps migrating to Arbitrum or building from scratch, the on-chain activity on the network has the potential to increase, thus driving up the value of the ARB token. The addition of new features and network upgrades that increase throughput could also contribute to strengthening the ARB price.

While it is impossible to provide an accurate prediction of the ARB token price over any duration, there are several key factors that could influence ARB price action and volatility:

Level of Adoption

The on-chain activity on Arbitrum could see a boost when more developers create and deploy their projects on the network, attracting more users to the ecosystem. The expanding dApp ecosystem could drive up the demand for ARB crypto among investors and DAO members, leading to an increase in the Arbitrum price.

Future Upgrades

Upgrades that enhance the throughput, efficiency, and scalability of the Arbitrum network make it more appealing compared to its competitors. Such developments could also increase investor confidence in the native asset and support the price of the ARB token.

Market Outlook

A positive outlook towards cryptocurrencies in general, as well as sectors like DeFi and Web3, could be particularly advantageous for the Arbitrum price. Bullish sentiment encourages more buying activity among investors, contributing to an uptrend in the value of ARB crypto. Conversely, a bearish or risk-averse sentiment among investors could lead to market sell-offs that weaken the ARB to USD price.

Governance Token

ARB holders are eligible to participate in the decentralized governance of the network by becoming members of the Arbitrum DAO. They can enjoy voting power directly or delegate it to other DAO members who contribute their thoughts on future upgrades to the network.

Crypto Asset to Trade and HODL

Trade Arbitrum cryptocurrency against other digital assets to take advantage of changing market conditions and volatility. You can buy or sell ARB against other cryptocurrencies or hold it long-term if you believe in the future potential of the Arbitrum scaling solution.

Be sure to choose a platform that is secure, trusted, and has a user-friendly interface. Additionally, ensure that the platform offers adequate liquidity and reasonable fees.

At BYDFi, you have the flexibility to trade ARB on our spot, margin, or futures market. Alternatively, you can use our advanced crypto trading bot to execute your trading strategies.

The developers plan to airdrop 12.75% of the ARB total supply upon launching the Arbitrum Foundation and DAO Governance for the Arbitrum One and Arbitrum Nova networks. The airdrop begins on March 23, 2023, based on data taken on a snapshot on February 6, 2023.

Offchain Labs and the Arbitrum Foundation will airdrop ARB tokens to real Arbitrum users based on a point system devised in collaboration with Nansen. Factors considered include network usage metrics while deducting points from users who engaged in Sybil-linked usage patterns.

Some factors that make you eligible for claiming ARB airdrop include conducting transactions or bridging funds into Arbitrum One or Arbitrum Nova or interacting with multiple smart contracts on the Arbitrum One network.

To check your airdrop eligibility, visit Arbitrum Foundation, connect your wallet to the dApp, and click the Check Eligibility button. If eligible, you can claim your ARB airdrops for 185 days from March 23.

You can become an Arbitrum DAO delegate by filling in your details in the application form at this link. The delegate application form entries will be reviewed to process your application to become an early delegate in the DAO.

Arbitrum recommends that users who wish to become delegates have an in-depth foundational technical understanding of the protocol and Ethereum ecosystem. They must also be willing to engage continuously with the Arbitrum community to drive its growth and evolution.