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Forum > Why Arbitrum Is More Cost-Effective Than Ethereum?
Why Arbitrum Is More Cost-Effective Than Ethereum?
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Lyra Bennett
63 posts
Sep 15, 2025
5:23 AM
Entrepreneurs are most likely to prefer a high-speed, low-transaction-cost blockchain network in 2025. As a result, blockchain networks like Arbitrum are gaining increasing attention. Arbitrum is more cost-effective compared to popular blockchains like Ethereum. So let’s explore the reason behind it.

Arbitrum utilizes rollup technology, which bundles hundreds, if not thousands, of transactions off-chain and sends them as a single batch to Ethereum. Due to this, the transaction fees are reduced drastically as transactions are shared among many users. This makes the transaction cost 10x cheaper than Ethereum.

Arbitrum handles most computation, and storage happens off the chain. This drastically reduces the cost, which makes it far cheaper than Ethereum. Since Arbitrum is using optimistic rollups, it assumes all the transactions are valid unless someone proves them wrong, avoiding unnecessary checks and saving processing power. So, as an entrepreneur, you can go with Arbitrum blockchain development to reduce costs.


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