Company Updates, Crypto Payments
CoinGate Launches Payments on Arbitrum Network
Last updated: June 15, 2023 2 min read
Want to go shopping on CoinGate using ETH, but the transaction fees are too high? Use Arbitrum.
As Ethereum gas fees continue to be a significant hurdle for users and developers alike, several layer 2 solutions are battling for dominance in the mission to reduce fees and speed up transaction times.
Among them, Arbitrum stands out with its innovative use of optimistic rollups, a breakthrough in achieving scalability on the Ethereum blockchain.
What is Arbitrum?
Developed by Offchain Labs, Arbitrum is a layer 2 platform that executes transactions off-chain for superior performance while maintaining the security and decentralization of the Ethereum mainnet.
Launched in September 2021, Arbitrum offers a faster and more affordable alternative to the Ethereum mainnet.
Arbitrum Arrives on CoinGate
With high Ethereum gas fees being a common pain point for crypto enthusiasts, CoinGate’s introduction of payments on the Arbitrum network provides a breath of fresh air.
Users can now spend ETH and USDT (ERC-20) at CoinGate’s merchant websites and a gift card store using Arbitrum network, thus allowing users to benefit from significantly lower transaction fees and faster processing times.
For a rough comparison, the cost of sending ETH on Arbitrum is approximately $0.05 per transaction, compared to a current ~$0.75-$1 on Ethereum.
How to Use Arbitrum?
Using Arbitrum at CoinGate is straightforward and intuitive – you just need to select the Arbitrum network before making a payment.
Arguably the more difficult part is connecting your Ethereum wallet (like MetaMask) to the Arbitrum network, then depositing ETH or ERC-20 tokens like USDT from the Ethereum mainnet to the Arbitrum network using the Arbitrum bridge.
Once you take care of that, the rest is a breeze. Thus, we expect Arbitrum to be a popular payment rail on our invoice, knowing how compelling it is for anyone eager to enjoy the benefits of the Ethereum network without the burden of high gas fees.