INTRODUCTION

Arbitrum's transaction count surpassed that of Ethereum for the first time ever. This dashboard looks at the network activity on Arbitrum. And what it could mean for arbitrum's future. Let's look at a breakdown of this activity by sector Transactions by

WHAT IS ARBITRUM

The Arbitrum network is a layer-2 Ethereum scaling solution, developed by Offchain Labs, a New York-based company aimed at solving the problem of congestion on the Ethereum network. The platform allows smart contracts to execute and validated on it's chain, via a technique known as 'transaction rollups' which are then moved to Ethereum network which acts as an underlying security layer. Transaction fees on Arbitrum are paid in Eth, hence, the arbitrum network incentivizes it's nodes (known as aggregators) with ETH for adding blocks to the Ethereum mainnet (Layer 1) Arbitrum first launched it's Beta version in May 2021, which attracted interest from developers in the deFi space, seeking lower gas fees. The network recently underwent an upgrage known as Arbitrum Nitro to improve throughput and interoperability.

KEY DEFINITIONS

Gas:

Gas on a blockchain is a fee paid by users to transact on the blockchain, cloocted as transaction fees by dApps and paids to nodes to secure the network.

Layer 2:(/h4) Layer 2s are sidechains built on top os the Ethereum network, which solve congestion on Ethereum by offering improved transaction enviroment through lower gas fees and faster transactions.

Smart Contract:

A smart contract is a self executing program that invokes itself on a blockchain when it's preset conditions are met.

Transactions:

Transactions in blockchains refer to smart contract interactions which can be invoked by either Users(wallets also known as Externally Owned Addresses (EOAs) or by other Smart contracts through interacting with other programs. Transaction activity is the repeat occurance of transactions recorded on-chain and can be calculated by contract interactions.

Wallet Activity

Wallet activity refers to transactions by user wallets also known as Externallly Owned Addresses. This is used as a proxy for the number of Users, however, it should be noted that it does not imply that wallets = users

Volume

Volume is the monetary value of transactions on-chain and is recorded by the

ARBITRUM FLIPS ETHEREUM (TRANSACTION ACTIVITY)