Why on Arbitrum
We know that Etherum is a very popular system chain for developing decentralized applications (Dapps), and many developers make Ethereum as their main focus. However, negative things began to emerge from the skyrocketing gas costs and rampant congestion that made the user experience not smooth on the L1 Ethereum. Based on these conditions, a solution emerged for the development of the Ethereum chain in the form of a side chain and layer 2 chains. Sidechains such as Binance, Polygon, and others have a different security system from Etherum, while layer 2 chains such as Optimism and Arbitrum use the security system of Etherum itself (We will compare below). Developers believe that the Ethereum security system is still the best, and therefore needs to scale and Rollup the chain known as the Layer 2.
As announced on our Twitter, we have done rigorous consideration in the Buck Stablecoin runs on Arbitrum.
What is Arbitrum?
Arbitrum is a Layer 2 cryptocurrency platform from Ethereum, that makes smart contracts, fast and private. Arbitrum interoperates closely with Ethereum, so Ethereum developers can easily cross-compile their contracts to run on Arbitrum.
Why on Arbitrum?
here are our reasons Buck Stablecoin runs on Arbitrum:
Arbitrum moved contracts’ computation and storage off of the main Ethereum chain to Layer 2. Arbitrum runs a multi-round interactive system resulting in faster transactions throughput than the Layer 1 main chain.
As a layer 2 from Ethereum, Arbitrum isn’t only to speed up Ethereum’s transactional throughput, but also reduces transaction costs at the same time. Let’s take an example, that Uniswap is one of the biggest gas consumers in the Ethereum market. Especially when L1 is congested, gas prices continue to skyrocket and cause trading costs to soar. If Uniswap volumes leave the main chain, the rest of the transactions on the Ethereum chain will decrease, resulting in low gas transaction cost at layer 2.
Arbitrum provides a decentralized system with a level of security rooted in Ethereum Layer 1, therefore it is very suitable to provide transaction convenience for our users.
Layer 2 is compatible with Ethereum Chain by writing a Dapp in Solidity, then using the open-source Arbitrum compiler to generate Arbitrum-ready code. we can also transfer ether or other Ethereum based tokens back and forth between Ethereum and Arbitrum.
Arbitrum feature that allows Arbitrum users to quickly confirm the status of their transactions directly in Layer 2 without having to wait for transactions to be transferred to Layer 1.
Comparison of Optimism vs Arbitrum
Let’s start with Similarities, they both are :
1. Rollup layer 2 from Etherum Chain
2. They have all tokens on Layer 1
3. They use fraud proofs
4. They use sequencers
5. They use MakerDAO DAI bridge from Layer 1 to Layer 2
1. Optimism applies single-round interactive fraud proofs, whereas Arbitrum applies multi-round interactive fraud proofs. That makes Artibutrum have faster transactions throughput and low transaction costs.
2. Product readiness: Arbitrum has been running several testnets since October and is currently active on the mainnet for developers and also provides detailed documentation and code and Optimism is still under development and no more confirmation from July