Binance’s Arbitrum One integration offers a real alternative for depositing ERC-20 tokens, making the process cheaper for users.
Binance recently announced that it has integrated into Arbitrum One’s core network and has opened Layer 2 ETH deposits on Arbitrum One Layer 2. Development means Binance users can now deposit all ERC tokens quickly. 20 of the Ethereum blockchain using Arbitrum. In addition, these users will be able to do so at a relatively affordable transaction price. In addition, the leading crypto exchange has also suggested plans to facilitate Ether (ETH) withdrawals on Arbitrum One Network Layer 2 soon.
Although Binance did not specify this, it did promise to provide more information when the feature becomes available. If Binance chooses to go ahead, it will become one of the first centralized crypto exchanges with Layer 2 support.
Important is Binance’s integration of layer 2 ETH deposits. Indeed, several atomic swaps and decentralized exchanges are now enjoying greater popularity in the market.
Arbitrum One, developed by Offchain Labs, is the beta backbone of a scaling and stacking solution for the Ethereum network. His new initiative with Binance is a welcome relief for users who had to log into Arbitrum through a different network, which turned out to be costly. Binance currently has one of the highest volumes of digital currency transactions in the world, and the integration of Arbitrum portends the adoption of Ethereum. This further frees up the protocol to accommodate other tasks. As one decentralized financial operator explained:
“This is pretty big news because it will allow more people to use Arbitrum without having to touch Ethereum.”
Binance initiative with Arbitrum One is a step in the right direction
In recent times, the growth of the Ethereum network has been hampered by several issues. At the top of this list is network congestion and very high transaction costs. However, the integration of Binance with Arbitrum One helps to significantly improve the outlook for the network. This is because Arbitrum One uses a multi-layered Ethereum consensus protocol that can accommodate unlimited scalability. Additionally, Arbitrum One also performs this quickly and several times cheaper than the current Ethereum transaction cost.
Lark Davis, a crypto investor from New Zealand tweeted that Binance is working to allow users to make direct withdrawals from ETH to Arbitrum. In Lark’s own words, such integration will be “massive for Ethereum adoption.” Added to Lark’s tweet is a screenshot showing the reduced transaction fees as well as the time.
Ethereum’s integration of Layer 2 functionality comes in the midst of the network’s gradual transition to scalability and Ethereum 2.0. It’s been a long and difficult journey, prompting the Ethereum network to “move the goal post” on more than one occasion. However, it remains firmly on track as technologies such as rollups or side chains continue to help the Ethereum 2.0 ladder.
Finally, it’s important to note that the launch of Ethereum 2.0 will not prevent the Layer 2 platform from working to resolve scalability at this time.
At the time of going to press, ETH is currently trading at $ 4,123.
Tolu is a Lagos-based cryptocurrency and blockchain enthusiast. He likes to demystify crypto stories down to the essentials so that anyone, anywhere, can understand without much background knowledge. When he’s not in the thick of crypto stories, Tolu enjoys music, loves to sing, and is a movie buff.