A few years after Ethereum took off, it faced a real scalability crisis. As they say, never put a good crisis to waste. Solutions like Arbitrum emerged amid this crisis to provide much-needed scalability. BC.GAME has listed the ARB token as an option for crypto gambling enthusiasts to wager.
Wagering using crypto coins has its unique advantages. The primary benefit is the relative anonymity it offers to online crypto gambling enthusiasts. Unlike fiat, which has to move through banks or card companies, crypto is not tied to traditional finance systems.
Therefore, crypto gambling enthusiasts can go about their business without unnecessary anxiety that their employer or lending institution could view them negatively. Besides, payment processing is instantaneous as blockchain settlement does not need third-party approval. Now back to Arbitrum and what it’s all about:
Scalability is problematic for the Ethereum blockchain for several reasons. To summarize, users experience slow transactions and high gas fees. A hike in gas fees is problematic because it undercuts the essence of an enterprise blockchain. See, Ethereum is a platform for developers to build on tokenized economies. ETH is the common denominator as the tool for paying transaction fees. Should the fees be too high, there is no sense in using the Ethereum blockchain despite its other perks.
Arbitrum came up in this climate to fix things. The scaling solution intends to lower network congestion by taking as much load as possible on the Ethereum Mainnet (L1). This solution arose as Ethereum’s scalability issues became more apparent towards the end of the last decade. Ed Felten, a computer science expert, founded OffChain Labs in 2018. This company created Arbitrum the same year, and it soon grew into one of the top Layer 2 solutions.
The Inner Workings Of Arbitrum
This platform has four key components. They are:
- Verifiers – A verifier essentially refers to a distributed protocol checking transactions to ensure published ones are legitimate. The common synonym for verifiers in crypto platforms is validators.
- Virtual Machine (VM) – The virtual machine is the protocol’s computation engine that maintains code behind blockchain and smart contract functionality.
- Key – a key is a member of the Arbitrum ecosystem who owns tokens and proposes transactions. This term generally refers to the matching of public and private keys.
- Manager – A person/entity who follows the virtual machine’s progress and ensures it functions as intended.
The Arbitrum Virtual Machine ensures that parties can implement smart contracts with managers and validators, ensuring everything goes smoothly. Managers are vested in ensuring the virtual machine is operating well because they get rewards in the form of ARB for their efforts. Unlike some projects, the verifiers for Arbitrum only keep track of the hash of the Virtual Machine’s state rather than its entire state, reducing the cost of verifiers on the ecosystem.
These entities work together for a functional ecosystem. As to its scaling function, Arbitrum functions as an expansion rollup layer for Ethereum. Optimistic Rollup is a data compression technique to speed up Ethereum transaction speeds. It is called optimistic because transactions are presumed to be valid unless there is proof of fraud in the batch of transactions.
Ultimately, Rollup entails moving computation off the Ethereum blockchain. The post-transaction data is still recorded on the mainnet. Arbitrum blockchain is the solution for computation, bundling, and submitting transactions to Ethereum. Overall, the Ethereum blockchain gets relief because there is less computation work, and it receives back compressed data. Arbitrum, therefore, serves a crucial load management role for Ethereum.
Accordingly, users can utilize the Arbitrum token bridge to transfer ETH or ERC-20 standard tokens to the Arbitrum blockchain. This way, they can transact faster, and the outputs are still verifiable on the Ethereum mainnet.
The ARB token is helpful in keeping track of the cost of transaction execution on the Arbitrum chain. This cost goes primarily towards compensating Arbitrum validators for their efforts. The ARB token cost must always be within the Ethereum blockchain gas limit; otherwise, the whole thing would not make sense.
The ARB token is freely interchangeable with other Ethereum tokens. At press time, the token retailed for $1.15. Developers can also run dApps on the Arbitrum chain and gain significant savings on gas fees.
Arbitrum is quite similar to other layer-2 solutions in overall effect. The most direct comparison is Optimism, which also uses Optimistic Rollups technology. There are a few differences between the two, though. For once, Arbitrum requires multi-round fraud proofs. Arbitrum has its own virtual machine rather than relying on Ethereum.
Both play a vital role in ensuring that Ethereum handles its enterprise blockchain functions better. As long as Ethereum still has scalability needs, Arbitrum and similar scaling solutions will offer service.
Wager on BC.GAME using ARB
Arbitrum has made its presence felt among L2 solutions. It is a secure protocol that offers a credible alternative to Ethereum developers and users. Ethereum developers will continue implementing proposals and improvements while layer-2 solutions help to mitigate the shortfall.
BC.GAME has listed ARB because of its utility to the broader Ethereum ecosystem. You can utilize ARB to wager on any range of online gambling games. These range from table classics, slot games and even live dealer games. Sports betting is yet another option for sports fans to consider. ARB is now an option for users on BC.GAME to explore the endless possibilities on the platform.