Arbitrum Bridge

Bridge

Arbitrum Bridge is the canonical smart contract to move assets to and from the Arbitrum Layer-2 (L2) network. Assets are locked on the source chain and minted on Arbitrum.

Risk Rating
Best
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
The Arbitrum bridge has the ability to send messages between the Layer-1 (Ethereum mainnet) and Layer-2 (Arbitrum network), which allows for trustless moving of assets between the two networks.
What we like less
Arbitrum currently uses a centralized sequencer that is operated by Offchain Labs. It has the ability to control the ordering of transactions which could lead to the sequencer front-running transactions and profiting at the user's expense.
What it means for you
The Arbitrum canonical bridge is one of the safest bridges for you to transfer your crypto assets from Ethereum to Arbitrum in a simple and relatively fast manner.
Information
Exploit/Hacks
Unknown
Info
Key Metrics
Risk Assessment
Best
Protocol Code Quality
  • Code reviewed by several experienced auditors including Trail of Bits and ConsenSys
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 1% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of at least 4 signers, which means the protocol is less susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • Bridge messages are validated by smart contracts on Ethereum, thus inheriting security of the L1 network
  • The Arbitrum Bridge is managed by the Arbitrum chain team, which increases how much oversight the bridge receives as it is key to the well-functioning of the Arbitrum chain
Things to know about Arbitrum Bridge

What is Arbitrum?

Arbitrum is a Layer-2 (L2) blockchain for the Ethereum mainnet that uses optimistic rollups as its scaling method. Rollups are a general method to scaling transactions above the means of the Layer-1 (L1) by essentially 'rolling up' all the transaction on Arbitrum into one transaction recorded on the L1 to save gas fees. Arbitrum is built on top of and secured by the Ethereum blockchain as it processes all transaction on its own sidechain and posts the updated chain state back to the Ethereum mainnet. The Arbitrum rollup is optimistic because the transactions are always assumed to be correct and validators are incentivized to submit only valid transactions. The validity of a transaction can be challenged for up to seven days.

How Arbitrum bridge works

The Arbitrum bridge allows users to transfer native (or canonical) assets directly from Ethereum to Arbitrum via its two-way messaging system. To use the chain, users execute a deposit transaction which transfers funds to the bridge contract on the L1 and credits the same funds to you on the Arbitrum L2 at the specified user address. Withdrawing back from Arbitrum to Ethereum involves burning the asset on L2 and subsequently releasing the locked funds on the L1.

Risks of using the Arbitrum bridge

Due to the inherent design of optimistic rollups, all withdrawals back to the Ethereum mainnet must wait the duration of the challenge period of seven days. The use of a centralized sequencer in the initial stages can influence transaction ordering, and if there are no honest validators, then a malicious actor can steal funds by posting invalid blocks and state commitments.