Binance users can now deposit any ERC-20 tokens from the Ethereum network using Arbitrum quickly and at a reasonable cost.
On Friday, Binance announced the integration of the Arbitrum One core network and opened Ether (ETH) deposits on the Arbitrum One layer two.
Arbitrum
is a third-generation layer-two optimistic rollup protocol that runs on
an off-chain Ethereum contract and has lower costs and faster
transactions than on the Ethereum mainnet.
The announcement notes
that Binance users can now deposit any ERC-20 token from the Ethereum
network with Arbitrum at a reduced transaction cost. In addition,
Binance also stated that it will enable ETH withdrawals on the Arbitrum
One Network layer two in the near future, making it one of the first
centralized exchanges with layer-two support.
Related: The power of cheap transactions: Can Solana’s growth outpace Ethereum?
Ethereum,
arguably the most prominent blockchain network in the world, has been
hampered by network congestion and exorbitant fees, stymieing its
exponential growth. Arbitrum One offers a solution to this problem by
utilizing a multilayered Ethereum consensus protocol that allows for
unlimited scalability and near-instantaneous transaction times at a
fraction of the cost.
Binance’s integration of layer-two ETH
deposits is a significant step forward, coming at a time when
decentralized exchanges and cross-chain atomic swaps are gaining
popularity in the market. Binance is one of the world’s largest
cryptocurrency exchanges by volume, and the Arbitium integration is good
news for Ethereum adoption.
Related: Why Interoperability Is the Key to Future Innovation and Adoption
The
launch of the Arbitrum One Network layer two did not include an
announcement for ETH withdrawals, but it did promise that more
information would be provided when this functionality is available to
traders. However, it has been reported that Binance is preparing to let
users withdraw their funds directly to Arbitrum.
According to a tweet from Lark Davis, a crypto investor from New
Zealand, Binance is working on allowing direct ETH withdrawals to
Arbitrum. According to Lark, the integration will be “MASSIVE for
Ethereum adoption.” A screenshot showing reduced transaction costs and
time is included with the message.
The integration of layer-two functionality is a major stride forward in the right direction, as Ethereum strives toward scalability and Ethereum 2.0.
It’s worth noting that the launch of Ethereum 2.0 won’t stop layer-two
platforms from working to solve for scalability. Instead, technologies
like rollups or side chains will continue to aid Ethereum 2.0 scale
beyond its current capacity once sharding is completely implemented.
source link : https://cointelegraph.com/news/binance-opens-layer-2-eth-deposits-with-arbitrum-one-integration
