The Ultimate Beginner’s Guide to Arbitrum
Arbitrum, which describes itself as ‘the future of Ethereum,’ is a layer-2 scaling solution built on top of the Ethereum blockchain. It was designed to help expand Ethereum’s capability by speeding up transaction times, lowering transaction fees, and boosting its scalability.
In this guide, we’ll look at what the Arbitrum blockchain is, how it works, and a deep dive into the network’s native token, ARB. We’ll also highlight how you can buy, bridge, deposit, and swap ARB using Trust Wallet.
What Is Arbitrum and How Does It Work?
Arbitrum is a layer-2 solution that was developed to help scale Ethereum. People can use Arbitrum to carry out everything they would do using Ethereum.
For instance, you can deploy smart contracts and use Web3 apps on Arbitium just like you would on Ethereum. The upside of using Arbitrum instead of Ethereum is that the transactions are both cheaper and faster.
To achieve high performance, Arbitrum has incorporated its flagship product, the Arbitrum Rollup. This Optimistic rollup solution is deeply rooted in the security and privacy of the Ethereum network, which is trustless and permissionless. This also makes Arbitrum trustless and permissionless. And what this means is that all chain data on Arbitrum is also posted on a layer-1 protocol, and, therefore, any participating party can validate the chain and guarantee its safety.
Now, let’s focus on what Arbitrum seeks to do for Ethereum and how it’s going about it.
Ethereum is constrained as it can process only about 20 - 40 transactions per second (TPS). This means that when Ethereum reaches its TPS limit, people are forced to compete against one another to have their transactions included. The result is that the fees go up, and the network experiences latency preventing the Ethereum blockchain from becoming scalable since it can’t handle increasing transactions.
Arbitrum broadens Ethereum’s smart contracts capacity by enhancing its speed, scalability, and lowers transaction costs while still enjoying Ethereum’s security and privacy features. These factors are all driven by the Arbitrum rollup solution, a vital function of the network.
A rollup is a smart contract scaling solution that combines several off-chain transactions and lumps them into one in a process called ‘rolling up’. Once the transactions have been rolled up, they’re published on the Ethereum blockchain as a single transaction. To execute this, the Ethereum nodes aren’t needed to process every Arbitrum transaction as the Arbitrum rollup chain operates as a sub-module within the Ethereum network. The rollup process helps to make Arbitrum cheaper and faster to utilize and also ensures all transaction data is broadcasted back to the Ethereum network.
As a result, you can enjoy reduced transaction costs and decreased network latency while still retaining secure transactions as Arbitrum processes up to 40,000 TPS, 1,000x more than Ethereum can process.
Further, Arbitrum also backs the Ethereum Virtual Machine (EVM), which allows Ethereum decentralized finance (DeFi) developers to quickly and easily connect their decentralized applications (dApps) with the Arbitrum blockchain without altering their apps in any way.
For the Arbitrum blockchain to run effectively, it uses its own native token, ARB, instead of ETH.
The Arbitrum Token (ARB)
Arbitrum was created in August 2021. However, it wasn’t until March 23, 2023, that Arbitrum launched its long-awaited native token that currently trades with the ticker symbol ARB, via an airdrop. The ARB token’s role in the Arbitrum ecosystem is that of a governance token that allows its holders to vote on decisions related to the Arbitrum network via the chain’s decentralized autonomous organization (DAO) known as Arbitrum DAO.
The ARB token has had a steady growth since its launch and as of the time of writing, was ranked at number 37 according to token data on CoinMarketCap. The token has a total supply of 10 billion tokens, a current circulating supply that’s nearing 1.3 billion tokens and a market capitalization that’s slightly over $1.5 billion.
Out of the 10 billion tokens, the Arbitrum community has control of 56% of the tokens while another 11.62% was airdropped to eligible Arbitrum users. 44% of ARB’s tokens circulating in the crypto market will go to Offchain Labs’ - Arbitrum’s developers - employees and investors.
Additionally, Arbitrum has also allocated 1.13% of the tokens to the different DAOs found within the Arbitrum ecosystem which are also responsible for managing Arbitrum’s ecosystem. All remaining ARB tokens will be deposited into a treasury that will also be managed by Arbitrum DAO.
To manage and use the ARB token, you will need a secure crypto wallet like Trust Wallet while carrying out transactions on the Arbitrum network.
The Arbitrum Team and Roadmap
Arbitrum was created by Offchain Labs in August 2021. Offchain Labs was founded by three former Princeton University researchers, Ed Felten, Harry Kalodner, and Steven Godlfeder, in 2018 in New York, USA.
Felten, Kalodner, and Goldfeder have backgrounds in both academia and research, with proficiency in blockchain and computer science. Ed Felten is the Chief Scientist of Offchain Labs. Moreover, he is also a Professor of Computer Science and Public Affairs at his former university, Princeton University. Harry Kalodner is the Chief Technology Officer (CTO) of Offchain Labs. He is also a computer scientist. Steven Goldfeder is the Co-Founder and CEO of Offchain Labs. He is also a computer scientist and received his Ph.D. from Princeton University.
In 2021, as part of its roadmap, Offchain Labs launched the Arbitrum One Mainnet, which allowed developers to build dApps on the Arbitrum network. Since then, it has evolved to become EVM compatible making it seamless for developers to transfer their existing Ethereum dApps and smart contracts to the Arbitrum blockchain.
Other notable developments in the blockchain’s roadmap have included the creation of the Arbitrum bridge, integration with DeFi protocols, and the launch of the Arbitrum Rollup chain that utilizes Optimistic Rollup technology to help scale Ethereum. Arbitrum also continues to create and provide developers with the tools and resources required to enable them to develop on the Arbitrum network.
Of course, as the Arbitrum network continues to evolve, we can expect to see additional features and improvements included in the platform.
What Is Trust Wallet?
Trust Wallet is a secure self-custody cryptocurrency wallet that you can use to buy, bridge, deposit, and swap ARB tokens. As a secure, multi-chain, self-custody crypto wallet, Trust Wallet enables people to store and manage more than 10M+ digital assets, including non-fungible tokens (NFTs), across 70 blockchains.
People using Trust Wallet have full control and ownership of their crypto assets and private keys because of its self-custody feature. With over 25M+ users and more than 60M+ downloads, Trust Wallet desires to make Web3 accessible to everyone.
In addition, Trust Wallet’s recent integration of the zkEVM scaling solution into its Browser Extension lets developers execute smart contracts on the Ethereum blockchain using zero-knowledge proofs.
Getting Started with Arbitrum on Trust Wallet
Before you can get started with ARB tokens on Trust Wallet, you will first need to download the Trust Wallet app and set up an account. You can download the app via Google Play Store for Android and the App Store for iOS. Alternatively, you can also download the Trust Wallet browser extension on your desktop and use it to deposit ARB tokens.
For this guide, we’ll look at how you can download Trust Wallet both as an app on an Android smartphone and as a browser extension on the Chrome browser.
To download the Trust Wallet app on your smartphone, go to the Google Play Store or the iOS App Store on your phone and search for ‘Trust Wallet’ using the search bar.
Ensure that you click on the original Trust Wallet app before proceeding to install the app. Once installed in your smartphone, open the Trust Wallet app and click on ‘Create a New Wallet’.
Proceed to create your six-digit password that will provide your crypto assets and wallet with an extra layer of security. Once done, Trust Wallet will need you to back up your 12-word recovery phrase.
Remember, you should never share your recovery phrase with anyone, as you could potentially lose all your crypto assets stored in your Trust Wallet account. You can either back up your recovery phrase via Google Drive manually or write the phrase somewhere safe.
For the purposes of this guide, we’ll back up our Trust Wallet account manually.
To back up your Trust Wallet account manually, choose the ‘Back up Manually’ option on the app and check the warning boxes provided. These warning boxes provide instructions on what would happen in case you lose your recovery phrase.
Once you have checked the boxes, Trust Wallet will display your 12-word recovery phrase. Write it down in the exact order shown and click on ‘Continue, then proceed to confirm the secret phrase by keying in all 12 words in the order presented. After you click on ‘Done,’ you will have successfully created your Trust Wallet account, which is now ready to be used.
Now that you know how to download the Trust Wallet app on a smartphone device, let’s take a look at how to download Trust Wallet as a browser extension on Chrome.
First, head to the Trust Wallet website on your Chrome browser and click on the ‘Available in the Chrome Web Store’ option.
Next, click on ‘Add to Chrome’, then ‘Add Extension’.
The Trust Wallet browser extension will be installed on your Chrome browser and you can begin to deposit ARB tokens. You can also check if the installation has been successful and manage it by clicking on the extension tool on your Chrome browser.
How to Deposit Arb in Trust Wallet App and Trust Wallet Browser Extension
Let’s take a look at how to deposit ARB tokens using the Trust Wallet app.
Withdrawing ARB tokens from a crypto exchange into your Trust Wallet is easy. For the purposes of this guide, we’ll use Binance as our crypto exchange.
Since your wallet is all set up, the next step is to activate the ARB token in your wallet. To do this, click on the icon in the right-hand corner of the Trust Wallet app and search for Arbitrum on the search bar. Next, click on the slider icon to enable the ARB token in your Trust Wallet account.
Once done, click on the ARB token on your homepage and then ‘Receive’. To deposit ARB tokens into your Trust Wallet from an exchange, click on ‘Deposit from Exchange’ at the bottom. Next, choose Binance as the exchange to withdraw your ARB tokens by clicking on it.
If you already have the Binance app set up on your smartphone, Trust Wallet will automatically redirect you to the Binance app with your Trust Wallet ARB token address auto-entered for you.
However, before you can withdraw the ARB tokens into your Trust Wallet, you will need to whitelist your ARB wallet address on your Binance app. To do this, copy your ARB wallet address and on the Binance app, go to ‘Settings’ and click on ‘Crypto Withdrawal Settings’ then the ‘Add’ sign, and finally, ‘Add New Address.’
Select the ARB token and paste the wallet address you copied, then choose the wallet address origin. In this case, choose Trust Wallet, proceed to label your token, then enable the ‘Add to Whitelist’ button, and lastly, click on ‘Save’.
Next, enter the amount of ARB tokens you wish to withdraw. Binance will show you the network fee cost and the amount of ARB tokens you will receive in your Trust Wallet account. Click ‘Confirm’ to process the transaction.
And that’s it!
Once your transaction has been finalized, wait for the Arbitrum tokens to arrive in your Trust Wallet.
Next, let’s look at how to deposit ARB tokens into your Trust Wallet using the downloaded Trust Wallet browsers extension on your Chrome browser.
To start, click on the extension tool icon on your browser and then double-click on the Trust Wallet Extension to get the below display. Since we already created a Trust Wallet account, we’ll pick the ‘Import or recover wallet’ option.
Next, enter your 12-word recovery phrase and click on ‘Proceed’.
And that’s it. You can start using your Trust Wallet account through your Trust Wallet browser extension.
To open your Trust Wallet account on the browser, simply click on ‘Open Wallet’, and you will be able to see all your crypto assets.
If you’d like to deposit ARB tokens from Binance exchange into your Trust Wallet using the Trust Wallet browser extension, ensure that you’re logged into your Binance account. Next, scroll on to the ARB token on the main page of the Trust Wallet browser extension, then ‘Receive’ and proceed to copy the wallet address.
Then, go to your logged-in Binance account on your browser and click on ‘Wallet’, ‘Fiat & Spot,’ and then ‘Withdraw.’ Next, click on ‘Withdraw Crypto’ at the top right, highlighted in yellow as shown below.
Select the Arbitrum token. However, you will notice that you will be required to whitelist the Arbitrum address. Click on ‘Add Whitelist Address’ and you will be redirected to the below Binance page to whitelist your Arbitrum wallet address.
Next, click on ‘Add address’ and follow the prompts which are similar to how to whitelist a wallet address on the Binance app, to whitelist the ARB wallet address you copied from your Trust Wallet Browser Extension.
Once done, proceed to enter the amount of ARB token you want to purchase and follow the prompts. The ARB tokens purchased will be deposited into your Trust Wallet account once the transaction is successful.
And that’s how you can deposit ARB tokens into your Trust Wallet account using the Trust Wallet app and browser extension.
How to Buy ARB in the Trust Wallet App
Buying ARB tokens is as easy as depositing ARB tokens into your Trust Wallet account.
To start with, open your Trust Wallet, click on ‘ARB’, and then on ‘Buy ARB’.
Next, enter the amount of ARB tokens you wish to buy and click on ‘Next.’ Please note that the minimum amount of ARB that you can buy on Trust Wallet is $50.
Once you click on ‘Next,’ Trust Wallet will redirect you to one of its third-party on-ramp providers with the best market rate for ARB at the time of purchase. Simplex had the best offer at the time of writing this article.
Tap on ‘Next’ on the purchase screen and follow the instructions given by the app. You will be required to add your personal and card bank details to complete the transaction.
Once your transaction is successful, your ARB tokens will be deposited into your Trust Wallet. Please note that the transaction can take anywhere from a few seconds to a few minutes.
How to Swap ARB in the Trust Wallet App
Now that you know how to buy and deposit ARB tokens into your Trust Wallet account, let’s take a look at how you can swap ARB tokens to Tether USD using the Trust Wallet app.
On your Trust Wallet main page, click on ‘Swap’.
Next, proceed to select ARB as the token that you want to swap, and search for Tether USD. This way, you will be swapping your ARB tokens for USDT.
Proceed to enter the amount of ARB tokens you want to swap for USDT. Trust Wallet will show you the amount of USDT you will get. Next, approve the ARB tokens and then preview the swap to ensure all details entered are correct before completing the swap.
And that’s how to swap ARB in the Trust Wallet app.
Bridging Assets to Arbitrum: A Step-by-Step Guide
You can bridge your assets to Arbitrum using Trust Wallet. That means that you can use the wallet to send your ETH from layer-1 Ethereum to layer-2 Arbitrum.
To start, visit the Arbitrum official page at https://arbitrum.io/ and click on ‘Bridge Into Arbitrum’.
You will be redirected to https://bridge.arbitrum.io/. Once there, connect your Trust Wallet by selecting ‘Trust Wallet’ on the list of crypto wallets provided, as shown below.
Because you already have the Trust Wallet Browser Extension on your desktop, a pop-up will appear requiring you to accept the connection request. Click on ‘Connect’.
Next, Arbitrum will require you to switch to the Ethereum network to connect to its site. To do this, click on ‘Switch’.
Once you’re successfully connected, your screen will appear as shown below. Proceed to enter the amount of ETH you wish to use on Arbitrum. Your transaction details will appear under the summary tab on the right-hand side where you can review the transaction details under the summary tab and click on ‘Move funds to Arbitrum One’ to complete the transaction. Always ensure you have enough ETH to transact and cover the gas fees.
Once your transaction is confirmed, you will be able to see the transaction details on your screen. Please remember that the transaction can take a few minutes.
And that’s how to bridge your assets to Arbitrum using the Trust Wallet browser extension. You can also read more on how to bridge assets to Arbitrum here.
Popular dApps on Arbitrum
The Arbitrum ecosystem is packed with dApps. The Arbitrum One Portal, which currently supports more than 50 of the most utilized dApps on Web3, is described as the ‘gateway to the Arbitrum ecosystem.
While the Arbitrum ecosystem is home to most of the popular dApps that you’ve come to know from the Ethereum ecosystem, such as Aave and Uniswap, there are also other popular dApps on the Arbitrum network.
According to data from DappRadar, Uniswap V3, Stargate, Camelot, Odos, and 1inch Network are the leading dApps on Arbitrum. You can also browse through a comprehensive list of most of the dApps on the Arbitrum One Portal here.
Arbitrum is poised to become one of the most successful layer-2 Ethereum scaling solutions thanks to the use of the Optimistic Rollup technology and the fact that it incorporates the best of layer-2 channels and sidechains.
Through its rollup technology, Arbitrum plays a significant role in helping to reduce the transaction cost crisis and network congestion that has long plagued the Ethereum network. By reducing transaction fees and network congestion, Arbitrum makes it possible for more people to continue using the Ethereum network at a fraction of what it would cost on the main chain.
As Arbitrum continues to evolve and grow, we anticipate witnessing the magnitude of what it can help the Ethereum network to achieve. Arbitrum’s potential growth is also why Trust Wallet will be adding more functionality to its app to enable people to continue to interact seamlessly with the Arbitrum ecosystem.