How is Cryptocurrency Development on Arbitrum an Effective Solution for Businesses?

Cryptocurrency Development on Arbitrum

Key Takeaways:

  • Explore the factors making Arbitrum a rich spot for crypto projects to thrive in modern-day market conditions.
  • Discover the aspects that make cryptocurrency development on Arbitrum a viable business endeavor. 
  • Check out how you can create crypto tokens on Arbitrum with the assistance of experienced professionals.

The crypto market has been evolving steadily, marking a progressive path toward global adoption. With hundreds of blockchains thriving in the digital ecosystem, we should remember that only a few witness ample transactions to make them recognized on a global level. Arbitrum is one of those networks gaining the spotlight in recent times owing to its high efficiency and strong foundation put forth by Ethereum. With the number of projects opting for the layer-2 network increasing, it is only a matter of time before it conquers the top spots of the market. This blog discusses various aspects of cryptocurrency development on Arbitrum and how feasible it is from a business perspective.

Arbitrum: Recapping the Blockchain’s Significance

Arbitrum is a layer-2 blockchain built by Offchain Labs on Ethereum, which has technical superiority compared to other second-layer solutions developed on the network. The blockchain is based on optimistic rollups that trust that all entries are initially genuine, after which a contesting period is given to contest the authenticity of transactions. 

  • Arbitrum improves the scalability of the Ethereum blockchain by using optimistic rollups that bundle numerous transactions into one and work in the manner discussed earlier. In such a way, the blockchain taps into its node community to double-check transactions, which is one of the common Web3 ethos prevalent for a long time.
  • The layer-2 blockchain also supports smart contracts written for Ethereum and the Ethereum Virtual Machine (EVM), meaning businesses can easily enter this network without a hitch. With such technological support, the blockchain attracts driven entrepreneurs who launch their businesses on the network to gain the desired yields in the competitive landscape.
  • The blockchain has its own native token, ARB, which is used for network governance purposes. People holding these tokens can participate in decision-making activities to have their say on new proposals put forth for improving the blockchain over time. The token has a considerable investor base and a market cap exceeding $2.16 billion.

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Aspects Which Make Cryptocurrency Development on Arbitrum Beneficial

With all we saw above, cryptocurrency development on Arbitrum sounds like a great opportunity to capitalize as market attention slowly shifts to the layer-2 blockchain. The blockchain provides numerous benefits that intrigue entrepreneurs and established crypto brands to extend their services to this exciting network. The below subsections discuss some of those elements in detail.

Amazing Scalability and Speeds

Since the Arbitrum blockchain operates using optimistic rollups, it offers amazing levels of scalability and processing speeds, as witnessed by its transaction throughput. With exclusive off-chain mechanisms in charge of collecting and bundling transactions, registering data on a blockchain becomes easier than ever. Such provisions are essential for a blockchain that aims to cater to micro-transactions and daily applications. 

Lowered Transaction Costs

Given how quickly transactions are processed, you might wonder about the costs incurred for the process. However, Arbitrum’s off-chain mechanism ensures processing costs are drastically reduced compared to Ethereum, opening the gates for transactions of all scales to become possible without long wait times and high gas fees.

Elevated User Experiences

As concerns regarding transaction processing and costs are alleviated, user experience automatically improves on the network. This holds true for both businesses and end-users, as better customer relationships can be fostered through products that work efficiently. Also, the availability of detailed documentation and learning material is helpful for developers and the general audience to understand Arbitrum better.

Foundational Security from Ethereum

Since Arbitrum derives its foundation from Ethereum, high levels of safety are guaranteed. Ethereum is well-known for its robust framework, which ensures any hacking attempt is futile. Along with high levels of operational efficiency, such security facets make Arbitrum a preferred solution for decentralized finance (DeFi) platforms.

Cost-Effective for Business Operations

Using Arbitrum to develop cryptocurrencies is a top-notch option for businesses looking to optimize operational costs while delivering quality products. Since the blockchain incurs lesser transaction fees, crypto projects can save ample money and direct it to more technical aspects like smart contract audits, maintenance, and promotional strategies.

Interoperable Potential Across Networks

Since Arbitrum supports the EVM, smart contracts and cryptocurrencies created on the network can easily be interoperable with various blockchains. Such potential opens the scope for businesses to unleash projects that can explore their presence in different networks to garner a supportive community. Even today, multiple projects based in Arbitrum have extended their capabilities to multiple layer-1 blockchains.

Budding Crypto Ecosystem

While the global crypto ecosystem has an established presence, Arbitrum’s own ecosystem is still budding, meaning cryptocurrency projects can freely enter the niche market and make an instant impact. With the layer-2 blockchain offering sublime benefits to businesses, it would be a no-brainer to build on it to form a formidable business over time.

Potential to Explore Innovative Solutions

For the same reason mentioned above, cryptocurrency projects can seamlessly try out innovative solutions on Arbitrum. The blockchain has comparatively less user traffic, making it easier and more affordable for businesses to test tokens with novel utilities and properties, given how much the crypto market has evolved technologically over the years.

How Can You Develop Your Cryptocurrency on Arbitrum with Experts?

If you intend to develop a cryptocurrency project on Arbitrum, opting for expert services from esteemed companies like Blockchain App Factory is essential. In case you are working with our professional to create Arbitrum-based cryptocurrencies, here is the process we follow to launch your tokens:

  1. Consult with experts to understand the project’s needs and frame the development plan.
  2. Design various technical and economic aspects of the cryptocurrency token.
  3. Develop the token’s smart contracts using the necessary programming languages.
  4. Test the smart contract programs for errors and resolve them if any are found.
  5. Launch the cryptocurrency on the Arbitrum mainnet for public use.
  6. Maintain and upgrade the token contracts as necessary for optimal performance.


Therefore, we have seen the intricacies involved in cryptocurrency development on Arbitrum, the revolutionary layer-2 blockchain built upon Ethereum. With the crypto market looking for efficient technological solutions to offer better user experiences, Arbitrum has been branded as one such blockchain with its novel nature. The network is the best option to choose if you are looking to build a cryptocurrency project that aims beyond the traditional confines of the crypto space. Don’t worry if you need expert assistance; our professionals at Blockchain App Factory can provide ample aid to develop your Arbitrum crypto project. Connect with us now to begin building your dream crypto venture!

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