Arbitrum One — the first permissionless Ethereum layer 2 rollup with full Ethereum smart contract functionality — is live on mainnet — as is Nova, our first AnyTrust chain; We're sure you're (almost) as excited as we are!Here are some risks you should know about before using the system:
State Of progressive decentralization
The Arbitrum DAO system is the owner of both the Arbitrum One and Arbitrum AnyTrust chains; see “State of Progressive Decentralization” for more.
General words of caution: Software bugs
Offchain Labs’ implementation of the Arbitrum protocol has been carefully constructed, is perpetually being audited by several independent firms, and is continuously reviewed and tested following best engineering practices.That said, there remains a non-zero chance that our codebase contains some undiscovered vulnerabilities that put user funds at risk. Users should carefully factor this risk into their decision to use Arbitrum One and/or Arbitrum Nova, and in deciding how much of their value to entrust into the system. Note that Offchain Labs also sponsors a multi-million dollar bug bounty program to incentivize any party who funds such a critical bug to disclose it responsibly.
General words of caution: Scams
Arbitrum, like Ethereum, is permissionless; on both platforms, anybody can deploy any smart contract code they want. Users should treat interacting with contracts on Arbitrum exactly as they do with Ethereum, i.e., they should only do so if they have good reason to trust that the application is secure.
FAQs
The potential risks identified, such as protocol bad debt, cascading liquidations, overleveraged activity causing price wicks, etc., did not occur during the program. However, the absence of adverse outcomes does not mean that the program did not alter the risk profile of the Arbitrum ecosystem.
Is the arbitrum network safe? ›
Offchain Labs' implementation of the Arbitrum protocol has been carefully constructed, is perpetually being audited by several independent firms, and is continuously reviewed and tested following best engineering practices.
Does arbitrum use ETH or weth? ›
ETH is the currency used to pay gas fees on Arbitrum, and all Arbitrum transactions are powered by ETH. You can bridge ETH (and other tokens) from Ethereum to Arbitrum through Arbitrum's bridge.
Is there a difference between arbitrum and arbitrum one? ›
Arbitrum One uses the Rollup protocol, while Arbitrum Nova uses the AnyTrust protocol. Also, Arbitrum One, with its universal design, offers an affordable and scalable way to execute smart contracts that are compatible with Ethereum.
Can Arbitrum reach $100? ›
Arbitrum: Can ARB Reach $100? Arbitrum is currently trading at $1.23 and needs to rise 8,100% in the next bull run to reach the $100 milestone. The prospect of that occurring remains slim as its market cap needs to climb above $1 trillion to reach $100.
Has arbitrum been hacked? ›
The Jimbos Protocol Hack - May 28, 2023
Jimbos, a recently launched decentralized crypto protocol on Arbitrum, encountered a security breach that led to the theft of 4,090 Ether, approximately valued at $7.7 million.
What happened with arbitrum? ›
Arbitrum unlocked nearly 1.1 billion tokens and airdropped the unlocked tokens to its investors. Data from crypto intelligence tracker Spotonchain shows how the airdropped tokens made their way to Binance, one of the largest crypto exchanges by volume.
Who is behind arbitrum? ›
Ed Felten, professor of computer science and public affairs at Princeton, co-founded Offchain Labs, the company behind Arbitrum, in 2018. The strategy of storing data off-chain used by the Arbitrum network is called the layer 2 (L2) scaling solution (built on top of the leading Ethereum network).
What problem does arbitrum solve? ›
One such solution is Arbitrum, a layer 2 solution designed to enhance transaction throughput and reduce fees while leveraging Ethereum's established security and decentralization.
How does arbitrum make money? ›
Arbitrum generates revenue through transaction fees. Users pay fees to use computing resources on the network. These fees support sustainability and incentivize validators.
Arbitrum Overview
Our most recent Arbitrum price forecast indicates that its value will increase by 11.52% and reach $0.558029 by September 07, 2024. Our technical indicators signal about the Bearish Bullish 25% market sentiment on Arbitrum, while the Fear & Greed Index is displaying a score of 29 (Fear).
What chain is arbitrum on? ›
Currently, on Ethereum mainnet, there are 2 Arbitrum chains: one Arbitrum Rollup chain, called "Arbitrum One," and one AnyTrust chain, called "Nova"; users and developers can pick whatever suits their security / transaction cost needs.
Who builds arbitrum? ›
Arbitrum, created by Offchain Labs, uses optimistic rollup technology to significantly reduce the amount of on-chain activity while resolving a dispute interactively.
What is the advantage of arbitrum? ›
Arbitrum offers low transaction costs and faster processing times compared to traditional blockchains. This means that users can execute their crypto transactions more efficiently, without having to worry about high fees or long wait times.
Is arbitrum decentralized or not? ›
Chain ownership of both Arbitrum One and Arbitrum Nova is under the control of the Arbitrum governance system. The Arbitrum Decentralized Autonomous Organization (DAO), made up of $ARB token-holders and delegates, can carry out chain-owner operations through governance votes.
Should I invest in Arbitrum? ›
Arbitrum is trading at 0.5 as of the 9th of September 2024, a 4.17 percent up since the beginning of the trading day. Arbitrum has a very high chance of experiencing financial distress in the next few years of operation. It has also generated negative returns for investors over the last 90 days.
How long does it take to get money out of arbitrum? ›
The only delay that's felt by a user is in "withdrawing" — moving their funds from Arbitrum back to Ethereum; if users are withdrawing directly from Arbitrum to Ethereum, they must typically wait 1 week before receiving their funds on L1.
