Comprehensive Analysis of Ethereum Layer 2 Project Arbitrum

1. Project Overview

Arbitrum is an Ethereum Layer 2 scaling solution developed by Offchain Labs, utilizing Optimistic Rollup technology. Its main features include:

• Multi-round fraud proof interaction, reducing Gas consumption per challenge
• Stronger compatibility with EVM, nearly 100% compatible
• Replace the original AVM architecture with WebAssembly architecture
• Use Geth instead of a custom EVM simulator
• ArbOS rewritten in Go, optimizing transaction batching and compression system

Currently, Arbitrum is the largest Layer 2 project on Ethereum by TVL, reaching $3.85 billion, accounting for 55.97% of Layer 2 TVL.

2. Technical Upgrade

In 2022, Arbitrum mainly carried out the following technical upgrades:

1. Launch of the Arbitrum Nova chain, based on AnyTrust technology, designed specifically for gaming and social applications.

2. Nitro Upgrade:

   • Adopting WebAssembly architecture
   • Use Geth instead of a custom EVM simulator
   • ArbOS rewritten and optimized in Go

3. Launch the Stylus programming environment, supporting development in languages such as Rust and C.

3. Ecological Development

Well-known projects like Uniswap and AAVE have already been deployed on Arbitrum across multiple chains, while native projects such as GMX and Camelot have also emerged.

Popular native projects include:

• GMX: Decentralized perpetual contract trading platform
• Camelot: Native DEX, supports features such as customizable trading fees, etc.
• RDNT: Cross-chain lending protocol
• Treasure DAO: On-chain Game Ecosystem
• Trident: Propose "Risk to Earn" game economic model

4. Future Outlook

Arbitrum's future development focus:

1. Continue technical upgrades:

   • Reduce costs, improve TPS
   • Decentralized Sorter and Validator
   • Manage Authorization Decentralization

2. Expand ecological applications:

   • Develop social and NFT projects
   • Promote Arbitrum Nova chain applications

3. Improve the economic model:

   • Token Distribution Plan
   • Airdrop and ecological incentives
   • Governance Mechanism

With technology upgrades and ecological development, Arbitrum is expected to continue its surge in 2023, consolidating its leading position in Layer 2.