In Brief:
- Binance announced its integration with layer-2 scaling solution Arbitrum.
- Binance users can deposit their ERC-20 tokens from the Ethereum network using Arbitrum.
- The transaction will execute quickly with reduced cost.
Leading crypto exchange, Binance declared the integration of the Arbitrum One core network and opened Ether (ETH) deposit on layer-2 scaling solution, Arbitrum.
Arbitrum is the third generation layer-2 scaling solution, which runs on an off-chain Ethereum contract. Arbitrum allows users to execute faster transactions at low costs than Ethereum mainnet.
With the final Integration, now Binance users will be able to deposit any ERC-20 token from the Ethereum network with Arbitrum at a less transaction cost. Moreover, Binance also indicated that very soon, it will activate ETH withdrawals on the Arbitrum One Network, which will make it the first centralized exchange with layer-2 support.
At present, the Ethereum blockchain adoption is growing day by day which also leads to adoption of its cryptocurrency Ethereum. This growing volume leads to transaction congestion on the network and high gas fees. Arbitrum one uses the Ethereum consensus protocol, which enables unlimited scalability at an instant time at the fraction of cost.
The integration announcement came at the right time as decentralized exchanges and cross-chain atomic swaps are in demand in the market. Binance is the world’s largest crypto exchange platform in the context of volume.
Arbitrum has a great potential to handle congestion of transactions and that is the reason many crypto protocols opt for Arbitrum among other platforms. Currently, 1inch launched its Exchange Aggregator and Limit Order protocols to the Arbitrum layer 2 networks.
