We’ve written on why we’re excited about layer 2 in the past. Now Ramp has partnered with Arbitrum to bring fast, frictionless payments to its product and ecosystem.
What is Arbitrum?
Arbitrum is an Optimistic Rollup built to scale Ethereum. Its layer 2 solution enables Arbitrum to dramatically hasten the speed and scalability of Ethereum smart contracts.
What are Rollups?
Rollups are smart contracts that overcome the challenges of latency and high gas fees associated with layer 1 by processing multiple transactions in bundles off the main blockchain. They execute the transaction off the chain and then batch the transaction data, compresses it and, once complete, the data is subsequently posted to layer 1, where consensus is reached.
Not only do Roll Ups reduce the load on the main Ethereum network, but developers on the Arbitrum ecosystem can enjoy the best of both worlds. They benefit from Ethereum’s layer 1 security, while being able to deliver better user experience due to high-throughput, far lower gas fees and the superior speeds of smart contracts.
What about Optimistic Rollups?
As the name suggests, Optimistic Rollups make the assumption that transaction data on the Ethereum network is valid. Aggregators publish strictly the minimum information required and only if proofs of fraud are required will they be provided. An invalid transaction will lead to a dispute resolution and whenever someone detects a fraudulent transaction, they can offer fraud proof against that transaction.
Ramp partners with Ethereum layer 2 scaling and infrastructure solutions including Polygon, Arbitrum, and Avalanche, with all being used by many of the largest DeFi protocols. If you’re an Ethereum Developer and would like to take your project mainstream with low customer friction, contact us today.
Why Arbitrum matters
The growth of Ethereum is staggering. But as its grown, challenges and potential pitfalls have arisen: slow processing times and soaring gas fees, both driven by higher demand on the network. Layer 2 scaling solutions like Arbitrum are going to underpin the next phase of growth for Ethereum.