People made $10,000 to $50,000 from Optimism’s token airdrop for free! Missed it? Well, Arbitrum is next. With Arbitrum being a larger layer-2 project than Optimism, we might be seeing what is potentially the biggest airdrop of the year. In this article, we will explain what Arbitrum is and what you can do to receive its token airdrop.
Check out our LayerZero Airdrop Guide for another highly anticipated token airdrop.
What is Arbitrum?
Arbitrum is a layer-2 scaling solution designed to lower network congestion and transaction costs of Ethereum by offloading tons of computation and data storage from the main chain. It does this via the use of optimistic rollup — transactions on Ethereum are bundled up and transferred to a proprietary sidechain on Arbitrum (a secondary blockchain connected to the main chain). The transactions are then processed and sent back to the main chain after validation.
What is an Optimistic Rollup?
The optimistic rollup is the core element of Arbitrum. For those who do not know what an optimistic rollup is, we got you covered with a simple explanation.
Optimistic rollups assume all transactions as valid, hence an “optimistic” outlook. There is a time period during which users can dispute any suspicious transactions contained in a bundle. If a fraudulent transaction is detected, a fraud proof is executed which basically runs the correct transaction computation using the data on the main chain.
Since optimistic rollups do not perform any computation by default, it offers massive improvements in scalability. On the downside, potential fraud challenges of optimistic rollups could lead to delays in transactions, since progress comes to a halt until it the dispute is resolved.
Arbitrum’s Version of Optimistic Rollup
To provide context, optimistic rollups are compatible with the Ethereum Virtual Machine (EVM) and Solidity, which allow developers to port Ethereum-native smart contracts to rollups or even use existing tooling to create new decentralized applications (DApp). But for Arbitrum, it has its own virtual machine called Arbitrum Virtual Machine (AVM).
Arbitrum’s AVM greatly improves optimistic rollups because it stores very little data on-chain for optimal scalability. Moreover, to address potential delays due to fraud challenges, the AVM uses pipelining to process multiple disputes, while verification nodes help speed up the process.
This is called multi-round fraud proofs. Arbitrum uses a fine-combing approach to verify fraud proofs. It focuses on a particular point of disagreement over transaction history. Additionally, layer-2 transactions are not entirely executed on the main chain, rendering gas block limits irrelevant. As a result, this translates to higher network performance.
Who is the Team behind Arbitrum?
Arbitrum is developed by Offchain Labs, a New York-based startup committed to building innovative Ethereum scaling solutions. The company originated from the computer science research department of Princeton University, co-founded in 2018 by Harry Kalodner, Steven Goldfeder, and Ed Felten.
In September 2021, Offchain Labs raised $120 million in a Series B funding round from the likes of Alameda Research, Pantera Capital, Lightspeed Venture Partners, and many other major crypto venture capitals. The team has since then expanded to a global community of developers, academics and operators, with deep experience in cryptography, decentralized systems, and game theory.
Leading DApps on Arbitrum Ecosystem
Arbitrum’s layer-2 network allows developers to build and deploy highly scalable smart contracts at low cost, while benefitting from Ethereum’s robust layer-one security. Since its launch last year, the Arbitrum ecosystem has greatly expanded, ranking 6th in all chains total value locked with 129 integrated protocols.
Some of the top decentralized finance (DeFi) protocols including Uniswap, Curve, Aave, Balancer, and SushiSwap. Additionally, Arbitrum is not without its native protocols built on the blockchain which include GMX, Radiant, Dopex, and Vesta Finance.
Does Arbitrum have a Token?
Despite Arbitrum’s network usage skyrocketing, it does not have a token YET. There is no official announcement of the Arbitrum token, but there are rumours that Arbitrum will launch its token in Q4 2022 or Q1 2023, with the ticker expected to be either $ARBI or $ARB. After Optimism launched its OP token in April, Goldfeder posted a cryptic tweet suggesting an Arbitrum token is coming: “The appetizer is always served before the main course.”
How to Receive Potential Arbitrum Token Airdrop?
With an upcoming token launch, it is anticipated that network participants will be airdropped Arbitrum tokens. To see who qualifies, a snapshot is captured to view time frames of a blockchain’s history which includes all on-chain activities, transactions, and DApp interactions. In some cases, certain projects also include social media engagement like completing campaigns on Discord or Telegram to receive token airdrops. Here are some of the ways that could help you receive Arbitrum token airdrops:
Bridge to or from Arbitrum
You can use Arbitrum’s bridge (bridge.arbitrum.io) to bridge assets from other EVM chains to the Arbitrum network or vice versa. Remember, snapshots capture all on-chain activities, even just minimal amount deposits can qualify you for a token airdrop!
Interact with DApps on Arbitrum
You can also interact with DApps on Arbitrum such as making transactions, depositing funds, providing liquidity, swapping assets etc. It is recommended that native Arbitrum DApps should be focused first such as GMX or Radiant, but other major cross-chain protocols like Uniswap or Aave also works.
Participate in Arbitrum Odyssey
Arbitrum Odyssey was an 8-week initiative that was launched in June 2022, which involved users completing a series of tasks to win NFTs. However, it only ran for a few weeks until it was paused due to network congestion. But with the launch of Arbitrum Nitro, a major network upgrade, it is expected to be resuming shortly according to a Discord announcement by the Arbitrum team.
When Arbitrum Odyssey resumes, it is best to participate in the campaign as this will likely be the main prerequisite to receive an airdrop. You can follow them on Discord or Twitter to make sure you do not miss out on their announcements. In the meantime, purchasing an Arbitrum Odyssey Week 1 NFT on OpenSea might not be such a bad idea, a safe bet rather (only $10).
Earn Special Roles in Arbitrum’s Discord
You can join Arbitrum’s Discord channel and earn special roles in the server by completing small tasks: guild.xyz/arbitrum.
Most of these tasks are organized with Arbitrum’s partners such as Chainlink and TreasureDAO and are generally easy to complete since the requirement to qualify is minimal such as holding at least 0.001 LINK token. Since the snapshot captures those on-chain activities, it may also count towards the airdrop.