What is Arbitrum (ARB)?

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 minutes to learn more.

What is Arbitrum (ARB)?

Arbitrum is a Layer-2 blockchain designed to scale Ethereum, developed by Offchain Labs.

Arbitrum was founded by Ed Felten, formerly President Obama’s deputy Chief Technology Officer, Steven Goldfeder (CEO) and Harry Kalodner (CTO). The three co-founders met at Princeton University.

Arbitrum - in their own words

Arbitrum is an Ethereumlayer-two (L2) scaling solution. It uses optimistic rollups to achieve its goal of improving speed, scalability and cost-efficiency on Ethereum. Arbitrum benefits from the security and compatibility of Ethereum. Another benefit is the higher throughput and lower fees compared to Ethereum. That is made possible thanks to moving most of the computation and storage load off-chain.

Offchain Labs, the developers behind Arbitrum, announced the shift to a decentralized autonomous organization (DAO) structure — the Arbitrum DAO.

ARB utility?

ARB is the native token of the Arbitrum Network and is used for governance. Holders of ARB are able to vote on proposals that may impact features, protocol upgrades, fund allocation, and election of a Security Council. The Security Council is a group of 12 members elected by Arbitrum DAO participants, and are responsible for addressing risks within the Arbitrum ecosystem.

What does this mean for USDC?

Arbitrum USDC is easily accessible for exchanges, fintechs, institutional traders, and developers via the Circle Account and Circle APIs, enabling several use cases:

• Near instantaneous programmatic payments, anywhere in the world.
• Trading, borrowing, lending etc. through blockchain applications.
• Payments for e-commerce, NFT marketplaces, gaming, and more.

When using the Arbitrum Network, users also benefit from the faster transactions and lower fees associated with the layer-two network. For more on Arbitrum, check out their Medium page here.

NOT FINANCIAL ADVICE

Please note that Uphold and its affiliates do not provide investment, tax, or legal advice. This message is for informational purposes only and takes no account of particular personal or market circumstances, and should not be relied upon as investment, tax, or legal advice. For investment, tax, or legal advice and before taking any action you should consult your own advisors. Note that digital assets such as cryptocurrencies present unique risks for investors. Please see our disclaimer regarding risks specific to holding digital assets before investing.