Arbitrum One Hits Over 1 Billion Transactions Since Its 2021 Launch

SUMMARY

Arbitrum One has exceeded 1 billion transactions since its August 2021 launch and leads in total value locked (TVL) at $2.5 billion, while competitor Base has 755 million transactions.
Offchain Labs’ Arbitrum uses optimistic roll-up technology for efficient transactions and has introduced the Orbit software stack for developers to create Layer 3 blockchains.

Arbitrum One, a Layer 2 optimistic rollup for Ethereum, has recently outperformed 1 billion transactions since its launch in August 2021. This breakthrough not only highlights the platform’s productivity but moreover reflects its developing popularity in the blockchain ecosystem. Concurring to Blockscan data, its main competitor, Base, has recorded 755 million transactions, while OP Mainnet has accomplished 347 million transactions. Despite Base leading in daily exchange volume, Arbitrum maintains its position as the pioneer in total value locked (TVL), right now standing at $2.5 billion, with Base following at $2.2 billion.

Arbitrum was created by Offchain Labs, leveraging optimistic rollup innovation that allows for quicker and more cost-effective exchanges. This innovation decreases the load on the Ethereum mainnet by conducting off-chain computations. The “optimistic” angle of Arbitrum’s approach assumes transactions are valid by default and only confirms them if they are challenged. This diminishes computational demands on the Ethereum chain, resulting in faster transaction processing and lower cost for users.

In addition to Arbitrum One, Offchain Labs has created other Layer 2 networks, including Arbitrum Nova, which utilizes the AnyTrust protocol. This protocol serves as an off-chain information availability layer, providing a way to store transaction information proficiently whereas scaling decentralized applications (dApps). In October 2023, Offchain Labs presented the Orbit software stack, which equips designers with the tools required to launch their own Layer 3 blockchains. These chains can settle on either Arbitrum One or Nova, offering adaptability and innovation in blockchain development.

The fast development of Arbitrum, reflected in its high transaction volume and significant TVL, underscores its competitive edge in the Ethereum scaling landscape. As the platform continues to create and expand its capabilities, it is poised to remain a critical player in the Layer 2 space, pulling in developers and users alike. The ongoing advancements in innovation and the active community surrounding Arbitrum propose that its impact on the Ethereum network will only increase in the future.