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The Arbitrum network, developed by Offchain Labs, is designed to address the issue of congestion on the Ethereum network by improving how smart contracts are validated. As an Ethereum layer-2 (L2) solution, it aims to provide a more efficient and scalable way for DApps to be executed on the Ethereum blockchain without sacrificing security or decentralization. By combining off-chain computation and on-chain enforcement, Arbitrum enables developers to build complex and high-performance DApps that can be securely executed on the Ethereum blockchain. With the use of optimistic rollup – an L2 solution for scaling – Arbitrum users get to save transaction fees up to 100x compared to the layer-1 (L1) Ethereum mainnet.
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