What is Arbitrum Token? How To Buy ARB Token In India?

What is Arbitrum Token?

In times of congestion, Ethereum, the home of decentralized finance, applications, platforms, and so on, has seen high fees. This has hampered the growth of Arbitrum, which is considered the next-generation layer-2 scaling solution for Ethereum and offers possible solutions to the swelling transaction fees and congestion on the network. It uses optimistic rollups to achieve its goals of high speed and being scalable and cost-effective. 

The native token ARB, which went live recently through a hyped airdrop, is used for governance and staking. Offchain Labs, the company behind building Arbiturm, announced a transition to a decentralized autonomous organization (DAO), where ARB holders can now vote on various proposals for the development of the platform. 

Arbitrum held an iconic airdrop wherein the early users were eligible to get the tokens. Nearly 12.75% of the total supply was allocated for the airdrop, which was around 1.162 billion. Each user was expected to receive around 625 tokens, which were completely dependent on their interaction with the Arbitrum Network.

Who are the Founders of Arbitrum?

Offchain Labs, a New York-based development company, created the Arbitrum network. The founders of the firm are Ed Felten, Steven Goldfeder and Harry Kalonder. Ed Felten is a computer science professor at Princeton and also served as President Obama’s Deputy CTO and also co-founder and chief scientist of Offchain Labs. 

Steven Goldfeder is a computer scientist. He has completed his PhD at Princeton while Harry Kalodner is also a former Princeton university researcher with years of experience in computer science. All together founded Offchain labs and developed Arbitrum Network. In 2021, Offchain Labs raised $120 million in Series B funding led by Lightspeed Venture Partners. 

How Does Arbitrum Work?

The smooth working of the Arbitrum network includes the functioning of four key roles, Verifier, a Virtual Machine, a key and a manager.

Verifier is a distributed protocol which is responsible to check the legitimacy of the accepted transactions. A Virtual machine (VM) is a set of codes and data that define its operation. A key is a member who owns currency and transacts accordingly. Meanwhile, the Manager is a person who keeps track of a Virtual machine’s progress ensuring the proper functioning of the network. 

Arbitrum uses a smart contract to encode the rules as a Virtual machine where any manager can compel the VM to work according to the framed rules.  The Verifiers further keep the track of the hash of the VMs and not the entire network. Further, Managers are incentivized by the network to come out of band agreement on the working of the VMs. 

What Makes Arbitrum Unique – Use Cases

• Arbitrum uses optimistic roll-ups unlike many other layer-2 scaling solutions on Ethereum offering several advantages 
• It supports unmodified EVM smart contracts and transactions wherein the dApps can run over the network without any code changes
• The network can handle thousands of transactions per second with lower fees and faster finality rate, maintaining the security of the chain
• The developers can deploy programs written in popular languages over the network 
• The Arbitrum network does not depend on any centralized operator instead uses a decentralized network of validators who stake ARB. 

Arbitrum Price Analysis

Source: Tradingview

• The ARB token has just been launched with a very narrow history of only 24 hours and has undergone massive price variations.
• The ARB commenced the trade with a base price of around $11.6. Woefully, the price slashed extremely hard and marked the lows at $1.5 in minutes.
• The levels have been maintained around the same regions since then as the price is struggling hard to reclaim $1.5
• Moreover, the volume has slashed with a drop in the Average Directional Index(ADX) which measures the strength of the rally
• A small rebound in ADX is witnessed that indicates the growing strength within the token that may lift the price in the coming days

How to buy Arbitrum in India?

Here’s is how you can buy Arbitrum in India, 

• Download CoinDCX App on your Smartphone 
• Enter the details required for registration 
• Complete KYC
• After your profile verification, fund your wallet and buy ARB