Speaking about what this will mean for UniSwap users, Adams said:
“Layer 2 solutions will unlock enormous UX benefits, with fast finality and low tx fees.
However, we caution the community to take things slowly: this is experimental technology that requires serious battle testing before it can support economic activity at the scale of L1.”
– CEO, UniSwap
UPCOMING WEBINAR [MAY 29, 2021]
The vote to deploy on Arbitrum got a resounding ‘YES’ after over 41.35 million $UNI votes against 0 $UNI showed the overwhelming support from the community to make the deployment happen.
This latest move by UniSwap is not surprising considering the massive adoption of Layer 2 solutions such as Polygon (formerly Matic) that are helping users significantly manage gas costs on Ethereum.
Some notable players that have recognized the work of Arbitrum in the space include Ethereum Co-Founder, Vitalik Buterin, and the OKEx exchange among others.
Arbitrum goes live on May 28, 2021 and promises to offer drastically higher transaction throughput than Ethereum with gas fees up to 270x lower and says over 150 projects have already requested launch-day access to Arbitrum.
A Practical Class on Layer 2 DeFi
Check out this exclusive BitKE practical DeFi class on how layer 2 protocols like Polygon are enabling DeFi for retail users. The video includes demos on how to move funds on-chain onto Polygon, how to use Polygon DEXs like QuickSwap among other topics.
Arbitrum is an L2 scaling solution for Ethereum, offering a unique combination of benefits:
Trustless Security: Security rooted in Ethereum, with any one party able to ensure correct Layer 2 results
Compatibility with Ethereum: Able to run unmodified EVM contracts and unmodified Ethereum transactions
Scalability: Moving contracts’ computation and storage off of the main Ethereum chain, allowing much higher throughput
Minimum Cost: Eesigned and engineered to minimize the L1 gas footprint of the system, minimizing per-transaction cost
Arbitrum is an optimistic rollup. This means:
Rollup – Arbitrum is a rollup, which means that the inputs to the chain — the messages that are put into the inbox — are all recorded on the Ethereum chain as calldata
Optimistic – Arbitrum is optimistic, which means that Arbitrum advances the state of its chain by letting any party (a “validator”) post a rollup block that that party claims is correct, and then giving everyone else a chance to challenge that claim. If the challenge period (roughly a week) passes and nobody has challenged the claimed rollup block, Arbitrum confirms the rollup block as correct. If somebody challenges the claim during the challenge period, then Arbitrum uses an efficient dispute resolution protocol to identify which party is lying