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Arbitrum vs Optimism

Layer 2sintermediate6 min read
The two largest optimistic rollups, side by side. Fraud proof architecture, governance, ecosystem, and where each is heading.

Arbitrum and Optimism are the two dominant optimistic rollups on Ethereum. They started with different fraud proof designs and diverged further as their ecosystems matured.

Fraud proofs

Arbitrum uses multi-round interactive fraud proofs. Disputants narrow down the disagreement in a bisection game, and only the final step gets executed on L1. Cheaper on the happy path, more complex protocol.

Optimism uses single-round fraud proofs (as of Cannon and beyond). Simpler to reason about, potentially more expensive to challenge.

Ecosystem

Governance

Both have on-chain governance with their own tokens (ARB, OP). Optimism pioneered the retroactive public goods funding model (RetroPGF). Arbitrum runs its DAO and has funded major grants (Arbitrum DAO Foundation).

App-chain paths

Arbitrum Orbit lets projects launch their own L3 that settles to Arbitrum. Optimism's Superchain lets you launch a chain in the OP Stack ecosystem. Both have real traction: Orbit chains include XAI (gaming) and Arbitrum Nova.

Which to build on

Building DeFi that needs deep pools: Arbitrum. Building consumer + social with Coinbase distribution: Base (on OP Stack). Deploying an appchain: pick the ecosystem that already has your target users.

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