Scalability
Review
Pros & Cons
Key Benefits
Arbitrum boosts Ethereum's scalability, processing more transactions per second at a lower cost than Ethereum's main chain.
Security Assurance
Despite off-chain processing, Arbitrum upholds robust security with Ethereum main chain protection, ensuring safe transactions.
Ethereum Friendly
Fully compatible with Ethereum, it allows smooth deployment of existing Ethereum smart contracts on Arbitrum.
Decentralization Focus
Maintains the decentralization trait, crucial for transparency and censorship resistance in blockchain applications.
Red Flags
Ethereum Dependency
Relies on Ethereum; issues on Ethereum could affect Arbitrum.
Emerging Tech Risks
New technology might harbor undiscovered bugs or vulnerabilities.
Economic Uncertainties
The long-term sustainability of operating Arbitrum nodes remains uncertain.
Regulatory Hurdles
Faces potential challenges due to evolving global blockchain regulations.
Competitive Market
Existence of multiple Ethereum Layer 2 solutions poses a significant competitive challenge.