Arbitrum One, a Layer 2 bullish rally for Ethereum, has reached a major milestone by surpassing 1 billion transactions since its mainnet launch in August 2021.
This success in three years reflects Arbitrum's growing dominance in the Tier 2 space.
According to Blockscan data, Arbitrum’s Coinbase-incubated rival Base recorded 755 million transactions, while OP Mainnet recorded 347 million. While Base currently leads in daily transaction volume, Arbitrum is in second place.
Despite the competition, Arbitrum holds the highest total value locked (TVL) among Tier 2 networks at $2.5 billion, according to DeFiLlam. Base follows closely behind with $2.2 billion in TVL.
Developed by Offchain Labs, Arbitrum One uses optimistic aggregation technology to enable faster and more cost-effective transactions while securing transactions via the Ethereum blockchain.
The system assumes transactions are valid by default and only validates them when a challenge is made, reducing the computational load on Ethereum and lowering the cost of transactions.
Arbitrum One operates with a security mechanism that allows for active fraud proofs and transaction challenges, but the platform is still in its early stages and is not yet fully permissioned.
Offchain Labs also operates a second Layer 2 network, Arbitrum Nova, which uses the AnyTrust protocol for off-chain data availability and aims to scale decentralized applications.
In October 2023, Offchain Labs released Orbit, a development toolkit for Layer 3 blockchain creation.
This tool allows developers to launch their own blockchains by deploying on Arbitrum One or Arbitrum Nova, further expanding the ecosystem of Layer 2 and Layer 3 chains built on Ethereum.
With its continuous innovations and strategic developments, Arbitrum continues to be a major player in the Ethereum scaling space.
*This is not investment advice.