Leo token will soon list on Cacaoswap as an arbitrum token, to reduce Ether transaction costs, instead of using WLEO. So it seemes like a good time to take a look at Arbitrum.
Arbitrim is a second layer solution
- Arbitrum is a layer 2 scaling solution for Ethereum, designed to improve the scalability and efficiency of the Ethereum blockchain. It aims to address some of the scalability challenges faced by Ethereum, such as high transaction fees and network congestion.
- Arbitrum achieves this by allowing for off-chain computation and only settling the final state of transactions on the Ethereum mainnet.
Arbitrum used optimistic rollups
Arbitrum uses a technology called optimistic rollups, which is a type of layer 2 scaling solution that aggregates multiple transactions off-chain and then posts a summary of those transactions to the Ethereum blockchain. This allows for a significant increase in transaction throughput while still maintaining the security guarantees of the Ethereum mainnet.
One of the key features of Arbitrum is its compatibility with existing Ethereum smart contracts and tooling. Developers can deploy their smart contracts to Arbitrum with minimal modifications, making it relatively easy to migrate existing applications to the Arbitrum network.
Arbitrum has gained attention within the Ethereum community as a promising scaling solution, with projects like Uniswap, SushiSwap, and others exploring integration with the network to reduce transaction costs and improve user experience.
It's worth noting that while Arbitrum aims to improve scalability and reduce transaction fees on Ethereum, it is not a separate blockchain but rather a scaling solution that operates alongside the Ethereum mainnet. Transactions on Arbitrum still ultimately settle on the Ethereum blockchain, leveraging its security and decentralization.
A Novel Way to Look at Arbitrum
Imagine Ethereum as a super busy highway where lots of cars (transactions) are trying to get through, but it's getting jammed with traffic, making it slow and expensive to use. Arbitrum is like a special lane next to this highway, designed to help more cars move quickly and at a lower cost.
Arbitrum works by taking some of the traffic off the main Ethereum highway and processing it on its own, faster road. It's like if you were in a long line for ice cream but found out there's a faster line just for people who want sprinkles – that's what Arbitrum does for transactions.
One cool thing about Arbitrum is that it's really good at understanding the language of Ethereum. So, all the special codes and rules that people use to make things happen on Ethereum, like smart contracts, can still work on Arbitrum without needing to change much.
Now, why is Arbitrum special compared to other fast lanes for Ethereum? Well, it's like this – other solutions might have their own roads, but sometimes they need you to change your car or learn a whole new driving style. Arbitrum doesn't ask for that. It's like having a shortcut that feels just like the regular route but is faster and cheaper.
So, in simple words, Arbitrum helps Ethereum by making transactions faster and cheaper without needing to change a lot of things. It's like finding a secret path that makes getting what you want easier and quicker.
Arbitrum Transaction Token
On Arbitrum, just like on regular Ethereum, there's something called a "token" that you use to pay for things like making transactions. It's a bit like having special coins that you use specifically in that place.
The token used on Arbitrum to pay for transaction fees is called "ETH." ETH stands for Ethereum, and it's like the main currency that people use on the Ethereum network. So, when you want to do something on Arbitrum, like sending money or interacting with a smart contract, you need to pay a small amount of ETH as a fee to make it happen.
Think of it like having to use a special coin just for that particular playground – you need to have some ETH to play in the Arbitrum world. It's like having your own money that you use in certain places to get things done.
Arbitrum versus other second layer solutions
On Arbitrum, you use the token Ether to pay for transactions, just like you do on the ethereum mainnet or blockchain. But on some other systems that also help Ethereum work faster (we call them "second layer solutions"), they might use a different type of token or money for these fees. It's like if you go to different arcades and they use different tokens for playing games – one might use blue tokens, another might use red tokens.
But on Arbitrum, it's like they stick with the main game token, which is ETH. So, no matter where you go in the Arbitrum world, you still use the same type of money, which makes things simpler and easier to understand. It's like always using the same currency no matter which store you visit.
Arbitrum and trading native assets
Arbitrum makes it possible to trade native assets from other blockchains on its decentralized applications (dApps). This is achieved through a feature called cross-chain interoperability.
Cross-chain interoperability allows assets from different blockchains to be used and exchanged within the same ecosystem.
In the case of Arbitrum, it means that users can potentially trade assets that originate from other blockchains, such as Bitcoin or tokens from other Ethereum-compatible chains, on Arbitrum-based dApps.
This interoperability expands the range of assets that can be traded and used within Arbitrum's ecosystem, providing users with more flexibility and options when interacting with decentralized applications on the platform.
It can also facilitate liquidity and trading opportunities by tapping into assets from various blockchains.
However, the specific implementation and support for cross-chain interoperability may vary depending on the dApps and protocols built on top of Arbitrum.
Another way to look at Arbitrums cross blockchain inter-operability .
Okay, so let's say you have different kinds of toys, like LEGO blocks and action figures. Each type of toy comes from its own box, like LEGO from one box and action figures from another.
Arbitrum is like a big play area where you can bring all your toys together and play with them. But here's the cool part: Arbitrum has a magic trick that lets you play with toys from different boxes at the same time! It's like if you could use your LEGO blocks and action figures together in the same game.
How does Arbitrum do this? Well, it's like having a special translator who understands both LEGO language and action figure language. So, when you want to use your LEGO blocks in a game with your action figures, the translator helps make it happen smoothly.
Similarly, on Arbitrum, there's a special feature that acts like the translator for different types of tokens from other blockchains. So, if you have tokens from another blockchain, like Bitcoin or tokens from a different Ethereum-like chain, Arbitrum can help you use and trade them alongside the tokens native to Arbitrum.
This means you can bring your different types of tokens from other blockchains and use them in the games and apps on Arbitrum, just like you would with the tokens native to Arbitrum itself. It's like bringing all your favorite toys to play together in one big playground!
Last Words
- Leo is reaching out to create a token on Arbitrum, and then use this token to connect Hive to Cacaoswap, so we get a new exchange listing for Leo token on Cacaoswap; arbitrim Leo-Cacao.
- This listing and this token connect Hive to Bitcoin directly through native asset swaps on Cacaoswap.
- While most of us are very Hive centric in our knowledge, we need to increase our knowlege of other chains and look for ways to interact with them, as a way of increasing the exposure of other communities to Hive.
- I think this is good for our community and our native tokens.
Posted Using InLeo Alpha
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Nice intro post to Arbitrum.
Mahalo
#hive #posh
We definitely have to increase our understanding of other blockchains if we want to interact with them. I like the analogy of the superhighway with many cars, makes it more understandable :)
Thank you, I am glad you liked the article.
I expect that with this listing more value will be added to the leo ecosystem and token economy. Such a nice article about this. Thanks for sharing with us @shortsegments
Your welcome, I am glad you liked the article.
"Imagine Ethereum as a super busy highway where lots of cars (transactions) are trying to get through, but it's getting jammed with traffic, making it slow and expensive to use. Arbitrum is like a special lane next to this highway, designed to help more cars move quickly and at a lower cost."
I'm sorry but this analogy makes no sense ... I can't think of any super busy highways that have any kind of "special lane next to it to help more cars move quickly and at a lower cost". Trying to explain something by an unrealistic analogy is not really helping, is it ?
How is Leo going to "create a token on Arbitrum" if Arbitrum is not a blockchain ? Nothing makes sense to me in your explanation.
So, what is Arbitrum, because it's even less clear now than before I started reading ...
Think of high occupancy vehicle lanes on highways. They have a lane reserved for them. Traffic moves faster and these vehicles burn less gas because they are not idling their engines in stop and go traffic. The occupoants of these vehicles breeze through traffic.
Oh, that is a helpful analogy, thanks
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You're well on your way to becoming a Hive legend @shortsegments! Keep up the fantastic work.