Arbitrum is a Layer 2 solution for Ethereum that aims to enhance scalability and reduce transaction costs. By leveraging Optimistic Rollups, Arbitrum bundles and processes transactions off Ethereum’s main chain, alleviating network congestion and making it more cost-efficient. The platform is compatible with Ethereum’s smart contracts, making it easy for developers to build and migrate decentralized applications (dApps). Optimistic Rollups leverage the consensus mechanism of their parent chain, In Arbitrum’s case, this parent blockchain is Ethereum which uses Proof of Stake (PoS). With its scalable infrastructure and low costs, Arbitrum is a key component in strengthening the Ethereum ecosystem.