Arbitrum is one of the leading Ethereum Layer 2 scaling solutions, developed by Offchain Labs. It uses a technology called Optimistic Rollups to process transactions more efficiently and cheaply than Ethereum’s mainnet while still inheriting its security. Here's a detailed overview and its 2025 perspective:

🔹 What is Arbitrum?
Layer 2 solution: Sits on top of Ethereum, offloading some of the computation and data storage.

Optimistic Rollups: Assumes transactions are valid and only checks them if challenged, which boosts efficiency.

Lower gas fees: By batching transactions, it significantly reduces costs compared to Ethereum Layer 1.

Compatibility: Fully compatible with Ethereum smart contracts (Solidity), so developers can easily port dApps.