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Arbitrum is a Layer 2 solution for the Ethereum blockchain designed to reduce transaction costs and increase processing speed. It utilizes Optimistic Rollup technology, which processes transactions off-chain and then submits summarized data back to the Ethereum mainnet. Key features: 1. Lower costs: Significantly reduced fees compared to direct transactions on Ethereum. 2. Faster transactions: Improved processing speed. 3. Security: Maintains the security of the Ethereum mainnet. 4. Smart contract support: Compatible with existing smart contracts without requiring code changes. Arbitrum is appealing to decentralized applications (dApps) and users seeking a faster and more affordable Ethereum experience.
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