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Arbitrum (ARB) is a layer-2 scaling solution designed to improve the speed, scalability, and cost-efficiency of the Ethereum blockchain. It utilizes optimistic rollups to process transactions off-chain, bundling them before submitting them to the Ethereum mainnet.
Arbitrum employs optimistic rollups, a technology that assumes transactions are valid by default. This allows for faster processing and lower fees. If a transaction is suspected of being fraudulent, a dispute resolution period allows for verification on the Ethereum mainnet.
The Arbitrum network is governed by the Arbitrum DAO, a decentralized autonomous organization. ARB token holders can participate in governance by proposing and voting on various aspects of the protocol, such as upgrades, parameter changes, and treasury management.