How does the Arbitrum whitepaper propose to solve scalability issues in the cryptocurrency space?

Lindahl SkriverMar 08, 2023 · 2 years ago3 answers

Can you explain the proposed solutions to scalability issues in the cryptocurrency space as outlined in the Arbitrum whitepaper?

3 answers

Shruti BajpaiSep 21, 2022 · 3 years ago
According to the Arbitrum whitepaper, one of the proposed solutions to scalability issues in the cryptocurrency space is the use of off-chain computation. This involves moving certain computations off the main blockchain, which can significantly increase the transaction processing speed and reduce fees. By utilizing a network of validators and smart contracts, Arbitrum aims to achieve high throughput without sacrificing security or decentralization.
KingsMainaMSsteveJul 03, 2020 · 5 years ago
The Arbitrum whitepaper suggests that another way to address scalability challenges is through the use of optimistic rollups. This layer 2 scaling solution allows for the aggregation of multiple transactions into a single batch, reducing the overall load on the main blockchain. By leveraging the security guarantees of the underlying blockchain, Arbitrum aims to provide fast and cost-effective transactions while maintaining compatibility with existing Ethereum smart contracts.
Abildtrup WoodardSep 22, 2021 · 4 years ago
As an expert in the cryptocurrency space, I can say that the Arbitrum whitepaper presents a promising approach to solving scalability issues. By combining off-chain computation and optimistic rollups, Arbitrum aims to provide a scalable and efficient solution for decentralized applications. This could have a significant impact on the usability and adoption of cryptocurrencies, making them more practical for everyday transactions.