The Ethereum blockchain is a utility blockchain that doesn't stop at powering the ETH cryptocurrency. It extends its use cases to other applications like smart contracts compatibility, tenacity to host other tokens, enabling environment for developing dapps, and lots more.
Since blockchains are a decentralized database of transactions, they encounter the trilemma problem, which propounded that blockchains must give up one out of their three key features, which are Decentralization, Scalability, and Security. This means that blockchain ecosystems can only offer two out of these three features. The Ethereum blockchain's sacrificial lamb is its scalability.
What is Scalability?
Blockchain scalability refers to the capability of a blockchain to facilitate voluminous transactional throughput and future growth. This implies that the blockchain's performance won't suffer as use cases and adoption increase if scalability is adequately catered for. The more a particular blockchain is adopted, its performance becomes poorer due to its lack of scalability because more adoption automatically means more transactions than it can process.
According to the blockchain trilemma, enhanced scalability is feasible but will compromise the blockchain's security and decentralization, or both. To mitigate the downside of sacrificing either of these features, blockchains resolve to a Layer-two–L2– innovation to do the work of the sacrificed feature efficiently.
What is a Layer 2 Protocol?
A layer two network or protocol refers to a network that runs on top of a blockchain protocol to increase the scalability and efficiency of the main network, also known as Layer 1. For instance, the Arbitrum network is a Layer-2 solution designed to increase transaction speeds on the Ethereum network. So Ethereum is the layer 1 protocol while Arbitrum is its layer 2 protocol.
What is Arbitrum?
Arbitrum is a layer-2 side chain designed to increase the speed and scalability of Ethereum smart contracts while providing more privacy features. The side chain simplifies Ethereum's transactions and also supports the Ethereum Virtual Machine–EVM– while under the protection of Ethereum's main chain security. i.e., the side chain enjoys the tenacity of the main chain by protecting it. The Ethereum main chain manages 14 TPS while Arbitrum scales 40,000 TPS with a lower gas fee.
Arbitrum was designed to address Ethereum's shortcomings like lengthy transactions and expensive gas fees. Arbitrum uses the Optimistic rollup to execute Ethereum's transactions and relay the output to the main chain–Ethereum Blockchain. Rather than confirming transactions one after the other, the optimistic rollup sums up batches of transactions into a single transaction and processes it once.
To use the Arbitrum chain, you need a compatible digital wallet like MetaMask. The reason for the choice of MetaMask is because the MetaMask wallet is a digital wallet for Ethereum standard tokens–ERC-20 and ERC-721. However, the MetaMask wallet doesn't have Arbitrum by default; users will have to add Arbitrum to the wallet.
How to Add Arbitrum to MetaMask
Before adding Arbitrum, ensure you have your MetaMask on standby for easier access; install the browser extension to your Pc. You can set up a wallet here if you don't have one.
· After setting up your wallet or having it on standby by signing in with your password, click on the network drop-down bar as indicated below. Then click on the “Add Network” bar.
· Add the following details in respective field as required. Then click on the “Save” icon.
Network Name: Arbitrum One
New RPC URL: https://arb1.arbitrum.io/rpc
Chain ID: 42161
Currency Symbol: ETH
Block Explorer URL: https://arbiscan.io/
· You will receive a success message at the bottom right corner of your Pc stating you’ve successfully added Arbitrum One.
Now that you've added Arbitrum to your MetaMask, you can receive Arbitrum tokens, but the tokens won't display in your wallet until you the tokens manually.
How to Add Arbitrum Tokens to MetaMask
· The first step is to go to Arbiscan.io and search for the details and contract of the tokens you intend to add. If you can’t find a token on Arbiscan, the contract address can be gotten from the project’s website. Ensure you visit the official website to avoid fake contracts from scammers.
· After getting the smart contract address, input it in the search field provided on Arbiscan and search.
· Then go back to your MetaMask and click on “Import tokens,” fill up the required fields and click on the “Add Custom Token” bar.
Then your token is added successfully. You can use this same procedure to add as many as your choice of tokens to MetaMask.
It is worth noting that you'll need ETH to offset the transaction fee for either swapping and sending cryptocurrencies or collecting NFTs.