Blockchain Infrastructure

What is Arbitrum and how does it work?

Arbitrum is a Layer 2 network that scales Ethereum by processing transactions off the main chain and posting compressed results back to it. It uses optimistic rollup technology, which assumes transactions are valid and allows a challenge window during which anyone can dispute an incorrect result. The effect is lower fees and faster confirmation while inheriting Ethereum's security for final settlement. For example, a swap that is costly on Ethereum directly becomes far cheaper when routed through Arbitrum. In a documented index methodology like Qatobit's, infrastructure assets are weighed on rules rather than narrative.