What Is Arbitrum?

Arbitrum is a layer 2 solution designed to improve the capabilities of Ethereum smart contracts — boosting their speed and scalability, while adding in additional privacy features to boot.

The platform is designed to allow developers to easily run unmodified Ethereum Virtual Machine (EVM) contracts and Ethereum transactions on a second layer, while still benefiting from Ethereum's excellent layer 1 security.

It’s built to address some of the shortcomings of current Ethereum-based smart contracts — such as poor efficiency and high execution costs — which have damaged the Ethereum user experience and frequently make transacting an expensive task.

Arbitrum uses a technique known as transaction rollups to record batches of submitted transactions on the Ethereum main chain, and execute them on a cheap, scalable layer 2 sidechain while leveraging Ethereum to ensure correct results. This process helps to offload most of the computational and storage burden Ethereum currently suffers from, while enabling new classes of powerful layer 2-based DApps.

New York-based development firm Offchain Labs is currently building the Arbitrum product, as well as an entire suite of scaling solutions. The initiative is spearheaded by Offchain Labs co-founders Ed Felten, Steven Goldfeder and Harry Kalodner. Ed is a professor, Steven received his Ph.D, and Harry is a Ph.D. candidate at Princeton University. All three are blockchain experts with a passion for making cryptocurrencies more capable.

About me:

Author: Hojjat        Discord: hojjat7878#8809        Twitter: @hojjat8d        Email: hojjat78delshad@gmail.com

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In this dashboard, we have reviewed the news published by Arbitrum, in which we have found suspicious cases.

This dashboard is divided into the following three parts:

1_ Arbitrum vs Ethereum

2_ Top 10 Projects in Arbitrum

3_ Top 10 Users in Arbitrum

The following tables were used to create this dashboard:

1_ arbitrum.core.fact_transactions

2_ ethereum.core.fact_transactions

3_ arbitrum.core.dim_labels

To get the number of transactions, the counting of the TX_HASH column has been used, and to get the volume of transactions, we have used the sum of the ETH_VALUE column, and to get the number of users, we have used the sum of the FROM_ADDRESS column.

Arbitrum vs Ethereum

1. The first section here provides a simple side by side comparison of Arbitrum’s and Ethereum’s overall stats. The first graph on the left represents number of daily users, then we have daily volume of transactions and finally in the third graph we have the number of transactions of each.
2. Now there is no need to explain that during the entire timespan daily number of users and daily volume of transactions of Ethereum are so much more and beyond comparable to Arbitrums, but in the final graph from Feb 19 forward we witnessed a huge increase in the number of transactions of Arbitrum surpassing Ethereum specially on Feb 21st of 2023 when Arbitrum reached its highest peak of transactions.

Top 10 Projects in Arbitrum

1. In the first raw of graphs in this sections we can see the top ten projects based on their amount of volume, in the top three spots we have Sushiswap, Binance and Uniswap respectively. The daily volume columns on the next graph shows that on Feb 21st Uniswap reached its peak of volume and on the next day (Feb 22nd) Binance owned most of the volume of that day. Finally in the following day, Feb 23rd, Sushiswap reached its highes amount of volume in the entire timespan.
2. In the following two rows we have the top ten projects based on number of users and transactions, as you can see similar to the volume section Sushiswap and Uniswap are both in the top three spots but instead of Binance here we have Hop protocol with over 140k users and over 420k transactions.
3. The final graph on the left side of this text box shows that Binance has the highest average of transactions volume in Arbitrum specially on Feb 21st of 2023.

Top 10 Users in Arbitrum

1. The reason why Arbitrum was able to recently surpass Ethereum in terms of number of transactions can be seen inside the graphs bellow.
2. As you can see in the first column graph we have the top ten users based on number of transactions and the first user stands out with an enormous number of over 2.1M transactions.
3. What is interesting here is that this user does not even exist in the top ten users by volume and the only thing we can mention about him is the high number of transactions from this address which is also broke down in the second column graph in the first row.

Conclusion:

First it was shocking for almost everyone to here a blockchain such as Arbitrum being able to outnumber Ethereum, the whole point of this dashboard is to cover the situation to see what exactly is going on. Now as an author I have no intentions of pointing fingers without evidence but i believe based on the information given in the first and final section of this dashboard, something sounds strange about the situation of Arbotrum. First of all the number of transactions rose in such a hurry and in extreme numbers, secondly as you can see in the final section about more than 90% of recent transactions only belonged to one address and there is no need to mention that this address does not exist in the top ten based on the volume of transactions.

All of this brings up the hypothesis of Arbitrum trying to intentionally gain more transactions by doing unnecessary low volume transactions since the number of users of this block chain are so low they are not even comparable with Ethereum as we mentioned in the first section of this dashboard in the first column graph.