> For the complete documentation index, see [llms.txt](https://aigpt-organization.gitbook.io/aigpt-whitepaper-3/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://aigpt-organization.gitbook.io/aigpt-whitepaper-3/technical-foundation/arbitrum.md).

# Arbitrum

Arbitrum is a Layer 2 scaling solution based on Optimistic Rollup developed by Offchain Labs. It allows for the construction of scalable Rollup chains on top of the Ethereum main chain, increasing throughput and reducing gas fees by decreasing the number of transactions on the main chain.

**Technical Features**

**Dispute Resolution**

Arbitrum employs Optimistic Rollup technology, recording only Rollback points and Resolve points on the Ethereum main chain, significantly reducing the number of transactions. Rollback points mark the beginning of a chain, while Resolve points mark the end of a chain when a dispute arises. If a transaction dispute occurs, it can be rolled back to the previous Rollback point and resolved on the main chain. Challengers provide Fraud Proof, and after the Rollup chain confirms, it resolves again.

**Zero-Knowledge Proofs**

Arbitrum utilizes zero-knowledge proofs from the AZTEC protocol, enabling private transactions on the Rollup chain.

**Technical Advantages**

**Scalability**

Transactions within the Arbitrum chain can be processed in parallel and are not dependent on the main chain's throughput, achieving a high TPS.

**Low Cost**

Only when disputes arise are main chain transactions needed, with the vast majority of transactions processed on the Rollup chain. This results in a more than 90% reduction in gas costs.

**High Performance**

A single Arbitrum chain can reach tens of thousands of TPS, and multiple chains can be scaled in parallel.

**Compatibility**

The Arbitrum chain is compatible with the Ethereum main chain, allowing seamless use of Ethereum wallets, smart contracts, etc.

**Privacy Protection**

Zero-knowledge proofs enable private transactions on the Arbitrum chain.

**Decentralization**

The Arbitrum network consists of multiple nodes, with the Ethereum main chain responsible for final validation, providing overall decentralization.

**Security**

With the Ethereum main chain acting as the final arbiter and the Rollback mechanism allowing for corrections in case of disputes, the overall security is high.

**Arbitrum vs Optimistic**

The specific performance differences are as follows:

| **Layer2 Technical**       | **Arbitrum**                                                         | **Optimistic**                                                    |
| -------------------------- | -------------------------------------------------------------------- | ----------------------------------------------------------------- |
| **Challenge Confirmation** | 1 Round                                                              | 2 Round                                                           |
| **Confirmation Time**      | Faster                                                               | Slower                                                            |
| **Fraud Proof Period**     | Shorter                                                              | Longer                                                            |
| **Scalability (TPS)**      | Up to 50,000 TPS                                                     | Around 1,000 TPS                                                  |
| **Complexity**             | More complex, requiring custom Fraud Proof and challenge mechanisms. | Simpler, directly using Ethereum main chain challenge mechanisms. |
| **Ethereum Compatibility** | Can directly run Ethereum smart contracts.                           | Relatively lower compatibility.                                   |

Both Arbitrum and Optimistic Rollup are Ethereum Layer 2 technologies based on Optimistic Rollup, with the main difference being the challenge confirmation model. Arbitrum uses a single round of optimized challenge confirmation, while Optimistic employs two rounds.

For AIGPT, the computational requirements for training and using artificial intelligence are greater, and the demands for confirmation time, implementation complexity, and Ethereum compatibility are higher. Therefore, Optimistic Rollup technology is more suitable. Among them, Arbitrum has more significant technical advantages compared to Optimistic.


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