Time series analysis

1. Over the past six months, Arbitrum has seen a continuous increase in transaction volume, from 158,114 ETH in September to 3,228,001 ETH in October and 3,293,091 ETH in January.
2. In contrast, transaction volume on Optimism has been more volatile, with a peak of 407,807 ETH in November, down from 743,982 ETH in August.
3. The median transaction volume on Arbitrum has increased from 0.08 ETH in September to 0.12 ETH in October and 0.10 ETH in January.
4. On Optimism, the median transaction volume rose from 0.05 ETH in September to 0.15 ETH in October and 0.07 ETH in November.
5. Transaction count on Arbitrum has increased steadily since September, from 111,064 to 250,109 in October and 193,843 in January.
6. Transaction count on Optimism has been more volatile, peaking at 154,470 in January, down from 241,568 in August.
7. Unique senders on Arbitrum have increased from 49,307 in September to 81,369 in October and 79,082 in January.
8. Unique senders on Optimism have increased from 28,793 in September to 80,789 in January.
9. Average transaction fee on Arbitrum has increased from 0.00004315 in September to 0.00006419 in October and 0.00007693 in January.
10. Average transaction fee on Optimism has increased from 0.00008556 in September to 0.00010818 in October and 0.00014309 in January.
11. Median fee amount on Arbitrum has increased from 0.00003365 in September to 0.00005164 in October and 0.00006633 in January.
12. Median fee amount on Optimism has increased from 0.00005395 in September to 0.00008469 in October and 0.00010175 in January.

What is Ethereum?

Ethereum is a decentralized, open-source platform that allows developers to create and deploy distributed applications (DApps) and smart contracts. Ethereum is built on a blockchain technology, which is a decentralized, immutable ledger. This allows developers to securely build, deploy, and manage applications without any centralized control. Ethereum also makes use of a cryptocurrency called Ether, which is used to pay for the costs associated with the use of the platform, such as transaction fees and storage fees. Ethereum is a platform for developers to create smart contracts, which are self-executing contracts that execute automatically when certain conditions are met. Smart contracts are written in a programming language called Solidity and are stored on the Ethereum blockchain. Smart contracts can be used for a variety of applications, such as creating digital tokens, issuing loans, creating decentralized autonomous organizations (DAOs), and more. Ethereum also makes use of distributed computing and distributed storage to create a secure, trustless network. This ensures that no single entity can control or manipulate the network, and that all transactions and contracts are executed in a secure and transparent way. Ethereum also makes use of decentralized applications (DApps) to allow developers to create and deploy applications without having to rely on a single entity. Overall, Ethereum is a powerful platform that provides developers with the tools to create secure, distributed applications and smart contracts. It is an essential part of the blockchain technology that is revolutionizing the way we build and manage applications.

What is Arbitrum?

Arbitrum is a blockchain protocol that is designed to provide a higher level of scalability, security, and privacy compared to existing blockchain networks. It uses zero-knowledge proofs to ensure that transactions are secure and private, while also providing a layer of scalability by sharding the blockchain. The protocol is built on Ethereum, and is designed to provide Ethereum-compatible smart contracts with improved transaction throughput and faster finality. Arbitrum also provides a secure, off-chain environment with a built-in incentive system, enabling users to execute transactions with low costs and reduced risk. This enables the development of more complex and secure smart contracts and decentralized applications. All transactions are stored on the Ethereum blockchain, ensuring that the data is secure and immutable. Arbitrum is a promising protocol for developers, businesses, and users alike, providing a platform for secure, scalable, and private transactions.

What is Optimism?

Optimism Network Layer 2 is an open-source platform that enables developers to build and deploy decentralized applications (dApps). Layer 2 enables developers to build applications on top of the Ethereum blockchain, allowing them to take advantage of its underlying security and scalability. Layer 2 also enables developers to interact with the Ethereum network without the need for a full node, thus reducing transaction costs and improving the speed of interactions. Furthermore, Layer 2 allows developers to create applications with the same features as traditional applications, such as user authentication, data storage, and access control. By using Optimism Network Layer 2, developers can create applications that are accessible to anyone with an internet connection, while also taking full advantage of the trustless, secure, and immutable nature of the Ethereum blockchain.

How do Optimism and Arbitrum compare to each other?

Optimism and Arbitrum are two different blockchain-based layer 2 scaling solutions. Both are solutions to the problem of scalability, which is the ability of a blockchain network to handle increasing amounts of data or transactions. Optimism is a layer 2 scaling solution that uses an optimistic rollup mechanism to offload transactions off the main Ethereum blockchain. It is a type of Ethereum scaling solution that uses a combination of off-chain computation and on-chain settlement. This allows for the processing of many transactions in parallel, while still retaining the security guarantees of the underlying blockchain. Optimism works by taking transactions off the main Ethereum blockchain and executing them on a sidechain, which is called an Optimistic Virtual Machine (OVM). The OVM then produces a hash which is used to verify the correctness of the sidechain and is sent back to the mainchain for settlement. Arbitrum is another type of layer 2 scaling solution. It is a second-layer scaling solution that uses a combination of on-chain and off-chain execution. Arbitrum uses a concept called “checkpointing” which allows for the execution of many transactions in parallel off-chain and then checked and settled on-chain. This allows for the processing of many transactions in parallel, while still retaining the security guarantees of the underlying blockchain. Both Optimism and Arbitrum are solutions to the scalability problem and offer their own advantages and disadvantages. Optimism is designed to be a simpler and more user-friendly solution, while Arbitrum is designed to be faster and more secure. Optimism is also better at handling large numbers of transactions, while Arbitrum is better at handling complex transactions. In conclusion, Optimism and Arbitrum are both viable layer 2 scaling solutions that offer different advantages and disadvantages. Depending on the specific use-case, one may be preferable over the other.

Methodology//Definitions

All of these metrics will be taken by week, beginning the first week of August (2022-08-01).

==Week==: The timeframe used to measure the performance of the Arbitrum network during a given week

==Transaction Volume ETH:== The total amount of Ether (ETH) transactions made

==Avg Transaction Volume ETH:== The average amount of Ether (ETH) transactions made during a given week.

==Median Transaction Volume ETH:== The middle amount of Ether (ETH) transactions made during a given week.

==Transaction Count:== The total number of transactions made during a given week.

==Block Count:== The total number of blocks generated on the Arbitrum network during a given week.

==Unique Senders:== The total number of unique senders of transactions during a given week.

==TX Fee==: The fees associated with each transaction made during a given week.

==Avg Fee:== The average fee associated with all transactions made

==Median Fee Amount:== The middle fee associated with all transactions made during a given week.

==Cumulative TX Volume:== The total amount of Ether (ETH) transactions made

==Cumulative TX Count:== The total number of transactions

==Cumulative Block Count:== The total number of blocks generated

==Cumulative Unique Sender Count==: The total number of unique senders of transactions

==Cumulative TX Fee:== The total amount of fees associated with all transactions made

==Additionally==, the non cumulative metrics will be shown for the Ethereum mainnet, L1. The purpose of this will be to compare and contrast the differences across the L2s vs. the L1.

Cumulative analysis

1. From September 26th, 2020 to January 9th, 2021, the cumulative transaction volume on the Arbitrum network increased by 54%, from 7,757,002 to 12,262,709, while the cumulative transaction volume on the Optimism network only increased by 18%, from 1,275,284 to 2,993,992.
2. During the same time period, the cumulative number of transactions on the Arbitrum network increased by 170%, from 813,082 to 3,656,473, while the cumulative number of transactions on the Optimism network only increased by 57%, from 404,081 to 2,102,233.
3. The cumulative transaction fees on the Arbitrum network increased by 337%, from 58.11 to 202.05, while the cumulative transaction fees on the Optimism network increased by 488%, from 36.39 to 215.
4. From August 1st, 2022 to November 28th, 2022, the cumulative transaction volume on the Arbitrum network increased by 168%, from 152,380 to 1,089,711.6, while the cumulative transaction volume on the Optimism network increased by 62%, from 324,880.6729 to 2,568,176.872.

Metrics since Aug 1st:

Conclusions

\n The Ethereum mainnet is the original, public Ethereum blockchain, where users can securely access the Ethereum network and interact with its decentralized applications. It is the most widely used Ethereum network, with a large number of users and developers. The Ethereum mainnet is a Proof-of-Work network, meaning that miners are responsible for processing transactions and securing the network. Ethereum also has a number of scaling and other optimization solutions, such as sharding, to improve its throughput. In contrast to Ethereum's mainnet, Arbitrum and Optimism are both Layer 2 scaling solutions for Ethereum. These solutions allow users to move a subset of their transactions off the mainnet and onto a more optimized network. Arbitrum is a Layer 2 solution built on top of the Ethereum mainnet, while Optimism is a Layer 2 solution built on its own blockchain. Both solutions aim to increase the scalability and throughput of Ethereum transactions, while reducing transaction costs. Arbitrum and Optimism have the potential to dramatically increase the speed of transactions and reduce fees for users. However, they still rely on the Ethereum mainnet for security. This means that users will need to trust the underlying Ethereum mainnet to ensure that their transactions are secure and valid. Additionally, both Arbitrum and Optimism are still relatively new technologies, and their security and scalability have not been thoroughly tested. In summary, the Ethereum mainnet is the most widely used Ethereum network, and is the foundation for the two Layer 2 scaling solutions, Arbitrum and Optimism. While Arbitrum and Optimism have the potential to significantly improve the scalability and throughput of Ethereum transactions, they still rely on the Ethereum mainnet for security. As such, users should trust the underlying Ethereum mainnet when using these solutions.

Metrics since Aug 1st: analysis

1. Arbitrum had higher transaction volume compared to Optimism, with 12,263,530 ETH compared to 2,994,457 ETH. This suggests that Arbitrum is used more frequently for transactions than Optimism.
2. Despite having a lower transaction volume, Optimism had a higher average transaction volume at 1.32 ETH compared to Arbitrum’s 3.19 ETH. This suggests that the transactions on Optimism tend to be higher value than those on Arbitrum.
3. Optimism’s median fee amount of 0.00007472 ETH was lower than Arbitrum’s median fee amount of 0.00004266 ETH. This could suggest that it is more cost effective to use Optimism for transactions than Arbitrum.
4. Arbitrum had a higher number of unique senders at 876,992 compared to Optimism’s 610,768. This indicates that more people are using Arbitrum than Optimism for transactions.
5. Arbitrum had a higher transaction fee of 216.11 ETH compared to Optimism’s 238.18 ETH. This suggests that Arbitrum is more expensive to use for transactions than Optimism.
6. Optimism had a higher average fee amount at 0.00010526 ETH compared to Arbitrum’s 0.00005629 ETH. This could suggest that transactions on Optimism are more expensive on average than transactions on Arbitrum.
7. Optimism had a higher transaction count of 2,262,721 compared to Arbitrum’s 3,839,088. This suggests that the number of transactions on Optimism is relatively high compared to those on Arbitrum.

Individual statistics- Optimism

Individual statistics- Arbitrum

L1 comparison- Ethereum Mainnet