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A Comprehensive Exploration of the Layer 2 Scaling Solution - Part II

Jan 17, 2024
byNDAX Labs

AnyTrust Chain

Taking a closer look at the nuances that make Arbitrum stand out, we find the AnyTrust Chain. But what does it mean? Simply put, the AnyTrust Chain is like a trusty old friend who's always honest with you. You just need one honest validating node for the network to work correctly and deliver accurate results.

Think of it as an integrity check system. With just one honest participant, it guarantees that the results of operations are accurate and reliable. This provides the reassurance that no matter how many participants are involved in any operation, as long as one keeps to the straight and narrow, everything stays on track.

Let's take a real-world example: Nova. The Nova Framework operates within the AnyTrust Chain. The key takeaway is that Nova promises scalability and efficiency for developers building on it.

And let's not forget about Nitro! Nitro is the natural evolution of Nova and comes with enhanced features that assure stronger security and greater throughput. This means more transactions can be processed swiftly and securely even when validators have differences.


Stylus comes in handy for developers who want their projects to benefit from Arbitrum's improved capabilities while remaining compatible with Ethereum. It's called a 'stack' because it builds upon existing implementations, adding functionality without disturbing the original functionalities.

Stylus ensures smart contracts continue to behave just like they do on Ethereum but interact with extra Arbitrum features. Devs can also use familiar languages like Rust, C, and C++ without losing the flexibility they know and love.

The Development Slate Past, Present, and Future

Arbitrum has been on a remarkable trajectory from its inception to its current state. The Arbitrum protocol was officially launched in April 2020, embarking on a swift yet strategic path towards revolutionizing Ethereum's scalability matrix.

A key point in this exciting development timeline was the Arbitrum Odyssey. This was an 8-week initiative designed to foster user engagement within the Arbitrum network. Users jumped at the chance to receive NFT rewards and boost their odds for an Arbitrium airdrop.

In line with its mission of progressing Ethereum's capabilities, Nitro was introduced as an upgrade for Arbitrium One implemented by Offchain Labs. Nitro substantially improved throughput – around 7x-10x higher than before. It also marketed advanced call data compression that promoted even further reductions in transaction costs on Arbitrum by decreasing the data posted to L1 – Ethereum's Layer 1.

Additionally, it provided tighter interoperability with Layer-1 block numbers under the Ethereum L1 gas compatibility feature.


An exciting move forward for the community is the planned release of over $1 billion worth of ARB tokens in March thisnext year. This heralds a four-year period of staggered unfreezing of its native digital asset and effectively kicks off decentralization (DAO) as customers begin operating Arbitrium.

Use Cases and DApp Adoption

As more and more Decentralized Applications (DApps) make use of Arbitrum, it's exciting to see what is now possible thanks to next-generation scalability.

Take the case of The Graph, for instance. Known as an indexing protocol for querying networks like Ethereum, it provides essential data in a user-friendly way, making it an indispensable tool for many projects. Detecting the unparalleled benefits that Arbitrum offers, this ingenious DApp has migrated its settlement layer to Arbitrium.

Let's also talk about Stargate Finance. This innovative project aims to make DeFi (Decentralized Finance) safer and fairer for all users and suddenly exploded with over 80 million Total Value Locked (TVL) within its ecosystem after implementing layer-2 solutions.

But the buck doesn't stop there. Here are more examples showing how Layer 2 solutions like Arbitrum help different industries:

  • DeFi: DeFi apps often support numerous microtransactions such as staking, swapping tokens, or contributing to liquidity pools. With Layer 2, these transactions can occur rapidly without paying excessive gas fees.
  • Gaming: Online games may involve multiple quick and complex transactions within a single gameplay session. Layer 2 unlocks possibilities for 'gasless' gaming - no more pauses due to slow or expensive in-game purchases.
  • NFTs (Non-Fungible Tokens): Creating or trading popular NFTs can mean dealing with high transaction costs due to their complexity. The creation process is now at lightning speed at lower costs because of Layer 2.

More on this incredible project next week in Part III.

Disclaimer: This article is not intended to provide investment, legal, accounting, tax or any other advice and should not be relied on in that or any other regard. The information contained herein is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of cryptocurrencies or otherwise.