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Information about Arbitrum (ARB)
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.
Arbitrum is powered by the Nitro proprietary technology stack. Nitro’s next-generation rollup architecture provides 7x more throughput than Ethereum and lower fees without sacrificing any security. Arbitrum is currently at the top of Ethereum’s Layer-2 chain list with a TVL of more than $1.8 billion.
ARB is a native token of the Arbitrum ecosystem, operating on Arbitrum according to ERC20 standard.
Offchain Labs, the developers behind Arbitrum, announced the shift to a decentralized autonomous organization (DAO) structure — the Arbitrum DAO. ARB holders can vote on proposals that affect the features, protocol upgrades, funds allocation and election of a Security Council.
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Lobby Finance’s involvement in purchasing votes on the Arbitrum platform has exposed vulnerabilities in token-weighted voting, raising questions about the democratic integrity of DAOs. The incident underscores how financial incentives can distort major decisions within decentralized governance.
In response to the vote-buying controversy, the Arbitrum Foundation is actively engaging in discussions about governance reforms. Proposed solutions aim to strengthen voting integrity by disqualifying purchased votes and implementing better protocols to ensure transparency and security in future elections.
RedotPay, based in Hong Kong, concluded a 40 million USD Series A funding round led by Lightspeed. The company enhances the use of cryptocurrency in daily transactions and launched Visa cards compatible with Solana and Arbitrum.
The firm has partnered with StraitX and Visa to advance crypto payment options in Singapore. However, there are concerns regarding restricted services for users located outside Hong Kong.
CertiK has identified a signature verification exploit on Arbitrum, leading to a theft of approximately 140,000 USD. This security breach allows attackers to bypass checks and drain funds from unverified smart contracts.
In response, CertiK has advised users to revoke contract approvals to prevent further losses. This incident underscores a troubling trend of increasing vulnerabilities in the cryptocurrency sector.
Arbitrum’s value has dropped from a local high of 0.8 USD to 0.34 USD over the past three months. Currently, 0% of ARB holders are in profit, resulting in 99% at a financial loss.
The persistent downtrend signals a bearish market. Analysts suggest potential recovery may occur as historical trends indicate that such low profitability can lead to a buying opportunity, and recent buying activity hints at this.
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