Arbitrum Gas Token: The Ultimate Solution for High Ethereum Gas Fees
The Ethereum network has grown into one of the most important distributed ledger technologies in the world today. It is the foundation of a number of popular projects, including decentralized finance applications, crypto gaming and more. Unfortunately, it has also been plagued by high transaction fees and slow transaction times. This has made it difficult for users to make transactions reliably, and has led to a bottleneck of transactions.
In response to this, several solutions have been proposed, such as offchain scaling solutions and Ethereum’s implementation of sharding. One of the most promising of these solutions is the adoption of Arbirtum gas tokens, which will allow users to pay for gas fees with tokens instead of Ether. This article will provide an overview of arbitrum gas tokens, as well as explain why they are the ultimate solution for high Ethereum gas fees.
What is Arbitrum? And Tokens used to pay gas fee on Arbitrum
Arbitrum is a layer 2 (L2) solution for the Ethereum mainnet that aims to relieve network congestion and high gas fees]. The Arbitrum blockchain uses a 2-layer solution to offload much of the computing and data storage from the Ethereum network
Users can pay gas fees on the Arbitrum network using different tokens, not just Ether (ETH), especially when Arbitrum recently launched ARB as its native token. There is no official list of tokens that can be used for paying gas fees, as it may depend on the specific implementation of the token and the contracts that interact with it on the Arbitrum network. However, there are discussions and proposals in the Arbitrum community about allowing users to pay gas fees with different tokens, such as DOPEx
How Do Arbitrum Gas Fees Work?
In Arbitrum, users pay gas fees to cover the cost of operating the two resources consumed to perform a transaction: L1 calldata and L2 resources. The L1 calldata is a fee per unit of L1 calldata attributable to the transaction as part of a batch posted to Ethereum L1 by the sequencer . The fee market in Arbitrum is inspired by Ethereum Improvement Proposal (EIP) 1559 but adapted to fit the L2 requirements.
Gas fees on Arbitrum are lower than those on Ethereum mainnet. The L2 gas price on a given Arbitrum chain has a set floor, which can be queried via ArbGasInfo.getMinimumGasPrice (currently 0.1 gwei on Arbitrum One and 0.01 gwei on Nova). An overview of how typical transaction fees compare across various L2 solutions can be found at https://l2fees.info/ . It is important to note that gas prices quoted in Metamask are 2-3 times higher than the actual gas prices that the transaction executes at, and the actual fee can be viewed in Arbiscan.
The Benefits of Arbitrum Gas Fee
Arbitrum's gas fees are significantly lower compared to Ethereum's gas fees while maintaining the same level of security as Ethereum . The fee market in Arbitrum works differently than on Ethereum's L1 network. Instead, it is inspired by EIP 1559 but has been adapted to fit the requirements of L2. The gas price on a given Arbitrum chain has a set floor, which can be queried via ArbGasInfo.getMinimumGasPrice, currently 0.1 gwei on Arbitrum One and 0.01 gwei on Nova. Querying the eth_gasPrice RPC method is a reliable gas price oracle for Arbitrum, and it returns the current minimal gas price required to have a transaction processed]. Arbitrum's gas fee structure involves paying two parties when submitting a transaction, the poster, if reimbursable, for L1 resources such as the L1 calldata needed to post the transaction, and the validator on the L2 chain who executes the transaction. Compared to Ethereum, Arbitrum's gas fees result in significant cost savings for users
Overall, the benefits of Arbitrum's gas fee structure include significantly lower fees, a reliable gas price oracle, and the ability to maintain the same level of security as Ethereum's L1 network. And it is important to note that users can pay gas fees on the Arbitrum network using different tokens, not just Ether (ETH), especially when Arbitrum recently launched ARB as its native token.