Arbitrum is an Ethereum Layer 2 (L2) scaling solution using optimistic rollups. It batches transactions off-chain, compresses them, and posts to Ethereum periodically. Gas costs drop 100-1000x because you're not computing on expensive mainnet—you're computing on a cheaper layer and verifying on mainnet. Users deploy smart contracts to Arbitrum using the same Solidity syntax as Ethereum. Wallets (MetaMask, Wallet Connect) switch between mainnet and Arbitrum automatically. The developer experience is nearly identical to Ethereum.