Yes, Arbitrum uses Ethereum. Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.
Arbitrum is a second-layer solution that runs on top of Ethereum. It is designed to enable scalable, private and secure smart contracts.
Arbitrum uses an innovative technique called “rollup” to achieve these goals.
Rollup is a type of sidechain that allows multiple transactions to be bundled together and executed off-chain. This reduces the load on the Ethereum blockchain, and enables Arbitrum contracts to run much faster and at lower cost than traditional Ethereum contracts.
Arbitrum also features built-in mechanisms for dispute resolution, making it ideal for use in applications where trust is essential, such as financial contracts, insurance and supply chain management.
The combination of scalability, privacy and security makes Arbitrum an attractive option for developers looking to build the next generation of decentralized applications.