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1. What is Arbitrum and why was it created?
Arbitrum is the most important and widely used Layer 2 scaling solution in the crypto world, developed by Offchain Labs to address Ethereum network limitations: high fees and congestion during times of heavy usage.📊
It’s not a new chain competing with Ethereum: it’s the perfect complement. It maintains 100% of the original network’s security, decentralization, and reliability, but processes thousands of transactions per second and then records the final result on Ethereum. Its native token (ARB) is the heart of the ecosystem: it’s used to pay transaction fees, vote on decisions, and access exclusive services.🚀

You've heard about Layer 1, Layer 2, and Layer 3 in crypto but don't know what they mean
In this article, I'll break it down easy with real examples
What is Layer 1
It's the main or base blockchain
Doesn't need another network to operate
It has its own security and consensus
Examples of Layer 1
Bitcoin BTC
Ethereum ETH
Solana SOL
Cardano ADA
BNB Chain BSC
Advantages of Layer 1
It's super secure
It's decentralized
It's the foundation of the entire ecosystem
Disadvantages of Layer 1
It's slow when there's heavy traffic
Fees can be as high as Ethereum's