On Friday, Binance announced the integration of the Arbitrum One core network and the opening of Ether (ETH) deposits for the second Arbitrum One team.
Arbitrum is a two-team 3rd generation optimistic deployment protocol, powered by off-chain Ethereum nodes, with lower costs and faster transactions than the Ethereum core network.
The announcement indicates that Binance users can now enter any ERC-20 token from the Ethereum network using Arbitrum at a reduced transaction cost. In addition, Binance also stated that in the near future it will allow ETH to be withdrawn on a second team from the Arbitrum One Network, making it one of the first centralized exchanges to support the second team.
On this topic: The Power of Cheap Transactions: Can Solana Expand Ethereum’s Growth?
Ethereum, arguably the most famous blockchain network in the world, has faced network congestion and exorbitant fees that have hindered exponential growth. Arbitrum One offers a solution to this problem with Ethereum’s proprietary multi-layer consensus protocol, which provides unlimited scalability and near-instant transaction times at a fraction of the cost.
Binance’s integration of Tier 2 ETH deposits is an important step forward and comes at a time when decentralized exchanges and online nuclear exchanges are becoming more and more popular in the market. Binance is one of the largest cryptocurrency exchanges in the world by volume, and the Arbitium integration is good news for Ethereum adoption.
On the topic: Why interoperability is the key to innovation and adoption in the future
The Arbitrum One Network team’s second launch did not include ETH withdrawal announcements, but they promised to provide more information when the feature becomes available to traders. However, it has been reported that Binance is preparing to allow users to withdraw their funds directly to Arbitrum.
According to a tweet from Lark Davis, a New Zealand-based crypto investor, Binance is working to allow direct withdrawals of ETH to Arbitrum. According to Lark, the integration will be “massive for Ethereum adoption.” The message includes a screen that shows the reduced transaction costs and time.
The integration of multi-level functionality is an important step forward in the right direction as Ethereum strives to achieve scalability and Ethereum 2.0. It is worth noting that the launch of Ethereum 2.0 will not prevent the two platforms from working on the scalability issue. Instead, technologies such as convolutions or side chains will continue to help Ethereum 2.0 expand beyond its current capabilities once the hash is fully implemented.