Binance integrates Ethereum layer-2 protocol “Arbitrum” as scaling race heats up 🚨 This article is 3 years old...
Binance integrates Ethereum layer-2 protocol “Arbitrum” as scaling race heats up
Binance now supports Arbitrum deposits on its platform in bid to remain the top crypto exchange in the world.
2 min read
Updated: Nov. 21, 2021 at 6:55 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Binance, in its latest effort to maintain its lead as the largest crypto exchange by trading volume, became one of the first centralized exchanges to integrate a layer-2 support for its Ethereum deposits by integrating the recently launched Arbitrum One core network. This was revealed in a press statement issued by the exchange earlier today.
Binance integrates Arbitrum
The CZ-led exchange revealed that it completed the integration of the Arbitrum One mainnet into its system and that its users can now deposit Ethereum using the new mechanism while also revealing that withdrawals would be made available in the nearest future via the same mechanism.
With this integration, it means users of Arbitrum have an additional solution to how to move their funds into layer-2, unlike in previous times when they have to send their tokens from Ethereum’s L1 through Arbitum Bridge or make transfers through other chains such as Celer Bridge or Synapse and others.
Arbitrum is a layer-2 optimistic rollup geared towards helping the blockchain of the second largest crypto asset by market cap be more scalable and at the same time help it to drastically reduce its record high transactions fee.
With Arbitrum, Etheruem’s network congestion would be greatly reduced as it uses a multilayered Ethereum consensus protocol to solve the challenges hampering the network’s growth.
ETH community reacts positively
Members of the Ethereum community and the crypto community at large have reacted positively to news Binance integration of Arbitrum.
HOLY COW!!!!! Binance about to enable layer two withdrawals directly to Arbitrum, this is MASSIVE for #ethereum adoption! pic.twitter.com/h069X4gfZM
— Lark Davis (@TheCryptoLark) November 19, 2021
Popular crypto investor and influencer, Lark Davis, tweeted that the adoption of Arbitrum by Binance is a massive news for Ethereum adoption while also posting a screenshot of the integration.
Another trader in his view opined that the integration means “game over for Matic” because “transactions can can happen away from Ethereum main net and take advantage of lower fees.”
Notably, the ETH network is seeing more layer-2 protocols being developed lately as developers continue to work towards making Ethereum a more scalable ecosystem.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.