Why Choose Arbitrum Over Base, Optimism, or Others?

Compared to Base:
Base, built on Optimism’s OP Stack and backed by Coinbase, offers simplicity and integration with Coinbase’s user base, making it user-friendly for newcomers. However, it sacrifices some decentralization due to its reliance on Coinbase’s infrastructure and lacks the advanced customization of Arbitrum’s Orbit or the cost efficiencies of multi-round fraud proofs. Someone might choose Arbitrum over Base for lower fees, greater decentralization, or the ability to build tailored chains.

Compared to Optimism:
Optimism’s single-round fraud proofs are simpler and faster to finalize (typically a 7-day challenge period), but they can be more expensive on L1 during disputes. Optimism also emphasizes EVM equivalence, which eases developer onboarding but limits language flexibility compared to Arbitrum’s Stylus. Users might prefer Arbitrum for its lower costs, faster block times, and broader developer tools, especially if they’re building complex or non-EVM-native applications.

Compared to Other L2s (e.g., zkSync, StarkNet):
Zero-knowledge (ZK) rollups like zkSync and StarkNet offer instant finality and potentially higher scalability, but they’re less EVM-compatible and require more developer effort to adapt existing Ethereum dApps. Arbitrum’s optimistic rollup approach strikes a balance: it’s immediately usable with Ethereum tools, offers low fees, and provides high throughput without the complexity of ZK tech. It’s a practical choice for projects needing quick deployment and cost savings now, rather than betting on ZK’s long-term potential.

Why we like it

High Throughput and Fast Transaction Finality: Arbitrum One, powered by the Nitro upgrade, achieves block times of 100-250 milliseconds, far faster than Ethereum L1’s 12-second average. This speed is a game-changer for Palisade, enabling rapid execution of client instructions—like transferring assets between wallets, settling trades, or interacting with DeFi protocols. For time-sensitive custodial tasks, such as responding to market volatility or fulfilling withdrawal requests, Arbitrum One’s performance ensures Palisade can deliver a superior service experience.
Cost Efficiency Tailored for Custodial Workloads: Arbitrum One significantly reduces transaction costs compared to Ethereum’s Layer 1 (L1), often by 90-97%, thanks to its optimistic rollup design. For a custodian like Palisade, which may need to handle frequent operations—such as depositing client assets, executing withdrawals, or managing staking contracts—this cost reduction is substantial.
Full EVM Compatibility for Seamless Integration: Arbitrum One is fully compatible with the Ethereum Virtual Machine (EVM), meaning Palisade can deploy existing Ethereum smart contracts, tools, and workflows without modification. This compatibility simplifies integration for a custodian already managing Ethereum-based assets, reducing development overhead. For example, Palisade can custody ERC-20 tokens, NFTs, or DeFi positions on Arbitrum One using the same infrastructure as Ethereum, unlike zero-knowledge (ZK) rollups (e.g., zkSync), which may require additional adaptation.

How to use it

To use Arbitrum on Palisade, simply create an Arbitrum wallet from the Palisade Console:

Once the Arbitrum Wallet is created, you may fund it and use it like any other wallet on Palisade. Being an EVM Wallet, it enables you to use Wallet Connect, including being able to deploy and interact with smart contracts, all through Palisade Console as well as the Palisade API.

Did you know?

Early in its development, the team at Offchain Labs considered naming the project "Arbitron" before settling on "Arbitrum." The name "Arbitrum" reflects its focus on arbitration-like fraud proofs to settle disputes, but "Arbitron" had a sci-fi ring that some team members found appealing. Ultimately, they chose a name that better aligned with the technical ethos of the project.

Another little known fact is that Arbitrum One’s technology stems from a 2018 research paper by Ed Felten, Steven Goldfeder, and Harry Kalodner, then at Princeton University. The trio explored optimistic rollups as a way to scale Ethereum without sacrificing security. This academic origin sets it apart from many blockchain projects that emerge from purely commercial or developer-driven initiatives.