The Arbitrum ecosystem comprises all decentralized applications and services built upon the Arbitrum scaling solution. This Layer 2 rollup protocol for Ethereum significantly boosts transaction throughput and reduces fees by processing computations off-chain. It functions as a virtual machine compatible with Ethereum smart contracts, enabling developers to migrate existing applications easily. The ecosystem supports various DeFi protocols, NFTs, and gaming applications.
Context
News often highlights the Arbitrum ecosystem’s growth as a leading solution for Ethereum scalability, attracting substantial developer activity and user adoption. Discussions frequently center on its technical upgrades, such as Arbitrum Nitro, which further optimizes performance and cost. Its position as a prominent Layer 2 network continues to shape the broader decentralized finance landscape.
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