Arbitrum Nitro excels at maximizing theoretical throughput by leveraging its unique multi-threaded sequencer architecture and fraud-proof system. This design allows it to process a high volume of transactions off-chain before submitting compressed batches to Ethereum. For example, during peak demand, Arbitrum One has demonstrated sustained periods of 40-100+ TPS, significantly higher than Ethereum's base layer, while maintaining sub-dollar transaction fees for users.