What Is Arbitrum? And How To Get Free Arbitrum Airdrop

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20 Jan 2024

Arbitrum, one of the most popular Ethereum scaling solutions, aims to speed up transaction times and cut fees on the Ethereum blockchain. So What Is Arbitrum? And how to get free ARB?

The Ethereum network has several advantages. It is decentralized, reliable, supports smart contracts written in a programming language familiar to many crypto developers, and is home to a thriving decentralized finance (DeFi) industry.
However, using Ethereum is slow and expensive, and it will remain so unless users choose to move to another blockchain (like Solana, Fantom, or Avalanche) or until planned Ethereum upgrades speed things up within the next couple of years.
While the world waits, a third fix has arisen: scaling solutions. These pieces of software sit atop the base layer of a blockchain, in this case, Ethereum, to speed things up.
Arbitrum is one such scaling solution, and Ethereum users have embraced it as a popular venue to complete their transactions.
On March 23, 2023, Arbitrum plans to airdrop its new ARB token, which will allow holders to vote in decisions related to the protocol. In so doing, Arbitrum will enact its long-awaited transition to a DAO (decentralized autonomous organization).
Arbitrum is quick and inexpensive to use, and it relays all transaction information back to the main Ethereum blockchain. While Ethereum manages only 14 transactions per second, Arbitrum races ahead at 40,000 TPS. Transactions on Ethereum cost several dollars to complete, while on Arbitrum, they cost about two cents.
Arbitrum also supports the Ethereum Virtual Machine (EVM). Therefore, Ethereum DeFi developers can integrate their decentralized applications (dapps) with Arbitrum without making any modifications.
Offchain Labs created Arbitrum. In September 2021, the company raised $120 million in a Series B funding round.

How does Arbitrum work?

According to Arbitrum’s development documentation, understanding this graph is crucial:
Arbitrum’s blockchain receives transactions from people and smart contracts by placing them into the chain’s ‘inbox.’ Then, Arbitrum processes these transactions and produces a transaction receipt. The transactions in the inbox determine how Arbitrum processes the transaction and what its ‘chain state’ will be.
Currently, Arbitrum uses an optimistic roll-up method to process Ethereum transactions and settles them on a sidechain before reporting back to Ethereum. Let’s examine this process more closely.

What is an optimistic rollup?

Arbitrum’s development documentation emphasizes understanding the graph that illustrates how people and smart contracts submit transactions to the chain’s ‘inbox’ and receive a transaction receipt after Arbitrum processes the transaction. The transactions in the inbox determine the chain state, and Arbitrum currently employs an optimistic roll-up method to process Ethereum transactions and settle them on a sidechain before reporting back to Ethereum.
Rollups compress batches of transactions into a single transaction, saving time and money by requiring the blockchain to confirm only one transaction instead of every individual transaction. Optimistic rollups assume that transactions within the rollup are valid and use a dispute resolution mechanism to contest fraudulent behavior.
Arbitrum’s optimistic rollups settle on a proprietary sidechain and are rubber-stamped with the “AnyTrust Guarantee” when validators agree on their validity. Validators stake ETH, incentivizing honest behavior.
Arbitrum does not have a token and settles all transactions with ETH. It has integrated into several DeFi protocols, with $2 billion worth of cryptocurrency locked up in its smart contracts. The Arbitrum One blockchain is in mainnet beta, giving developers control over the system, including the ability to pause it. Once it is confident in the project’s robustness, Offchain Labs plans to eliminate these controls.

How to use Arbitrum

To use Arbitrum, you can access it through a decentralized application such as Aave, 1inch, or Gnosis Safe or use the token bridge provided by Arbitrum directly. To deposit funds using the token bridge, you need to connect your Web3 wallet and wait for about 10 minutes for the deposit to clear. You will need to pay an Ethereum gas fee, which is based on Ethereum’s rates. For example, to deposit less than a cent of ETH to Arbitrum, the MetaMask wallet charged us $5.41 in gas fees.

How To Get Free Arbitrum Airdrop
Step-by-Step Guide:

Follow these steps to claim your tokens in the Arbitrum airdrop:

Visit the Arbitrum airdrop claim page.
Connect your wallet.
Click on “Check Eligibility.”
If you’re eligible, click on “Start claiming.”
Choose a delegator or delegate it to yourself to claim the tokens.

To determine a user’s eligibility, multiple qualifying actions were taken into account, such as bridging funds into Arbitrum One or Nova, completing transactions exceeding a specific value, or completing multiple transactions. Check the eligibility criteria in this article for more details. The snapshot of eligible users was taken on February 6th, 2023, at block height #58642080.
There is no need to rush since eligible users have six months to claim their tokens. The maximum number of tokens a user can claim is 10,200 ARB per wallet, determined by a points system. ARB is now tradable on major exchanges such as Binance, KuCoin, Uniswap, OKX, Huobi, and Wazirx.
In addition, future airdrops will be available for users who continue to use the Arbitrum ecosystem, similar to the Optimism airdrop. So, keep using dApps built on Arbitrum, like Vela Exchange and GMX, to receive future airdrops. For more information about the airdrop, refer to this page and this Medium article.

Arbitrum Settles Into Top 40 Coins With 81% of Airdrop Claimed.

The eligible users of the popular Ethereum scaling solution didn’t wait to claim the free Arbitrum (ARB) tokens. The highly-anticipated token was launched to the users of the Ethereum scaling network, and as a result, Arbitrum’s native ARB token shot up quickly before a sell-off leveled off the explosive hype, securing a spot as the 38th largest digital asset — by market cap, according to data from CoinGecko.
Dune-curated public blockchain data shows that 81% of the tokens have been claimed, and $2.5 billion worth of ARB tokens have traded hands in the past day. At the time of writing, ARB was trading for $1.27, per CoinGecko data, down 2.8% in 24 hours, while the peak of $8.76 was short-lived, and the price has held relatively steady since shortly after the drop.
Arbitrum is a scaling solution for the Ethereum network, aiming to make using Ethereum’s blockchain cheaper and faster by settling transactions on a sidechain before reporting back to the main blockchain. This solution is helpful for people wanting to make quick trades, especially in the world of decentralized finance (DeFi).
Earlier this month, Arbitrum’s team announced the impending launch of the ARB governance token, which lets holders vote and propose any changes that they would like to execute to the network. Ethereum enthusiasts speculated on how much the token could go for, and after the token became available via an airdrop yesterday, the project’s landing page crashed due to high demand.
Arbitrum is popular with DeFi traders, as current data from analytics site DeFi Llama shows that some $2.11 billion worth of tokens is locked up within Arbitrum’s smart contracts.

Wrapping Up

Arbitrum is a popular Ethereum scaling solution that aims to speed up transaction times and reduce fees. It uses an optimistic roll-up method to process transactions and settles them on a sidechain before reporting back to Ethereum, allowing it to handle 40,000 TPS compared to Ethereum’s 14 TPS.
It also supports the Ethereum Virtual Machine (EVM), allowing Ethereum DeFi developers to integrate their dapps without making any modifications. The upcoming launch of the ARB token, which will allow holders to vote in decisions related to the protocol, signals Arbitrum’s transition to a DAO.
With $2 billion worth of cryptocurrency locked up in its smart contracts and Offchain Labs’ plans to eliminate controls once it is confident in the project’s robustness, Arbitrum continues to grow and provide a viable solution for Ethereum users looking to avoid slow and expensive transactions.

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Written by CryptoZoom

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Founder of CryptoZoom. Trading and crypto enthusiast. Focused on educating investors. Crypto, NFT, Web 3.0, Blockchain, Metaverse, DeFi, FineTech, and Finance.