Overview
Subsquid Labs selected Arbitrum as the deployment platform for its SQD token and mainnet launch. The decision was based on technical capabilities, ecosystem strength, and cost efficiency.
Key Technical Advantages
Arbitrum’s Architecture: Arbitrum operates as an Ethereum Layer-2 optimistic rollup capable of processing up to 40,000 transactions per second by batching transactions and submitting final state to mainnet.
Security & Verifiability: The platform employs a state transition function that detects invalid transfers and removes them. Anyone can go and verify the state locally by running the state transition function themselves, supporting Web3 verifiability principles.
Censorship Resistance: The sequencer’s power is limited — it can only delay transactions, not censor them. A “delayed inbox” queue allows users to force transaction inclusion if needed.
Why Subsquid Chose Arbitrum
The organization highlighted three primary benefits:
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Trustless Security: Community members can verify correct L2 results independently
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Cost Efficiency: Transaction costs remain below $0.0009 per swap or transfer despite high traffic volumes
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EVM Equivalence: Unmodified Ethereum transactions run directly on Arbitrum, beneficial for a data platform serving multiple EVM chains
Ecosystem Strength
Arbitrum leads Layer-2 platforms with $18 billion in total value locked, processes approximately 22.29 transactions per second, and maintains 740,000 daily active addresses. The 2023 Developer Report identified it as the fastest-growing L2 with 50% YoY Growth.
Broader Vision
While Arbitrum serves as Subsquid’s home network, the organization emphasizes its role as a cross-chain data access layer for all Web3 networks.