Welcome to the world of Web3, where cryptocurrencies, blockchain, and a unique culture converge. Entering the world of Web3 can be both thrilling and overwhelming, especially when faced with the seemingly cryptic language used by enthusiasts. Don't worry if you feel they sound like some secret codes, we are here to unravel their meaning in Web3 context. In this article, we are going to introduce [Arbitrum One].
What Is 'Arbitrum One'?
Acting as the original and most popular Layer 2 option, Arbitrum One is known as the flagship chain of the Arbitrum ecosystem. Through the Optimistic Rollups technology mentioned earlier, Arbitrum One significantly increases transaction speed (Transactions Per Second) and cost-efficiency compared to Ethereum.
Arbitrum One focuses on DeFi and NFT projects. DeFi represents a blockchain-based financial ecosystem created to establish decentralized financial services and instruments, aiming to supplant conventional financial entities and middlemen. It seeks to offer more accessible and transparent financial services, encompassing aspects like lending, debt markets, stablecoins, decentralized exchanges (DEXs), liquidity mining, and more.
NFTs are digital assets that symbolize unique or non-fungible items or digital content. This includes digital art, virtual real estate, collectibles, music, etc.
Arbitrum Virtual Machine (AVM)
The Arbitrum Virtual Machine (AVM) is made just for Arbitrum to handle and run things on the Arbitrum Classic network. Think of a virtual machine (VM) in the blockchain world as a computer program that lets other programs run, especially the ones that deal with blockchain contracts.
There's only one AVM for each Arbitrum network. It works in a pretty straightforward way: it looks at the messages it gets, changes the network based on these messages (all these messages are also saved on the Ethereum blockchain), and then does what it needs to do next. The AVM was built to work a lot like the Ethereum Virtual Machine (EVM), which means it can run programs made for the EVM without much trouble, keeping some of the main ideas of how the EVM is built.
Source: HackQuest Arbitrum Learning Track
ArbOS
ArbOS is a special software made by Offchain Labs that takes care of all the logic and state updates for Arbitrum to work. It's named ArbOS because it works a lot like the system that runs your computer or phone, starting things up and then keeping other programs running on the network.
Source: HackQuest Arbitrum Learning Track
How Code is Processed and Executed in Arbitrum One
When you process transactions on Arbitrum One, there are two kinds of costs you need to consider: the costs for using L1 (Ethereum mainnet) and the costs for using L2 (which is Arbitrum).
Source: HackQuest Arbitrum Learning Track
Data Compression
Arbitrum's special virtual machine (AVM) is made just for Arbitrum. If you want to compress data in AVM, you have to develop a customized compression algorithm.