Binance integrates Arbitrum One mainnet to enable off-chain Ethereum (ETH) transactions
Binance has just announced that the crypto exchange completed the integration of Arbitrum One mainnet, a scaling solution for the Ethereum network developed by Offchain Labs. The system now allows users to deposit any ERC-20 token via Arbitrum One Layer 2 at a reduced transaction cost.
Better and faster
All users have been assigned Ethereum deposit accounts.
The integration of the third-generation Layer 2 rollup protocol that runs on an off-chain Ethereum contract means lower costs as compared to the Ethereum mainnet. Previously traders had to move funds from Arbitrum to Ethereum using the Arbitrum bridge. Now, they get to enjoy faster transactions.
Arbitrum is the second largest Layer 2 solution after Polygon on the Ethereum network; the market saw an unprecedented growth of the mainnet in the past few months.
The announcement notes that Binance will enable withdrawals to this network sometime in the near future. The deadline was not specified.
Layer 2 solutions have been quite popular in the crypto community lately due to Ethereum network congestion issues and unreasonably high transaction fees. They work by executing transactions outside Ethereum’s Layer 1 chain while storing all other data available on it.
Binance is just one of major crypto exchanges that has adopted the network, just like OKEx did a few months ago. Coinbase recently announced its plans to integrate Polygon’s Layer 2 network but is yet to deliver on the promise. The exchange has announced that it’s currently exploring other options.
Promoting the Ethereum network
Analysts were quick to predict that the integration will accelerate Ethereum adoption worldwide. For example, Lark Davis, a crypto trader from New Zealand, shared his excitement on Twitter, saying that the move will be “massive for Ethereum adoption”. He also included a screenshot showing reduced transaction costs.
Ethereum is currently working on addressing scalability issues. When Ethereum 2.0 will be launched, Layer 2 platforms will continue to work on solving those problems, as well as to aid Ethereum 2.0 scale beyond its current capacity once sharding is completely implemented.
Binance announced Friday, 19th November, that it has completed the integration of Arbitrum One. The Layer 2 network will help to reduce transaction costs using optimistic rollups technology.
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