Binance opens layer-2 ETH deposits with Arbitrum One integration

Published at: Nov. 19, 2021

Today, Binance announced the integration of the Arbitrum One core network and opened Ether (ETH) deposits on the Arbitrum One Layer 2.

Arbitrum is a third-generation layer-2 optimistic rollup protocol that runs on an off-chain Ethereum contract and lowers costs and speeds up 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 2 in the near future, making it one of the first centralized exchanges with layer-2 support.

Related: The power of cheap transactions: Can Solana's growth outpace Ethereum?

Ethereum, the 2nd largest cryptocurrency 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 L2 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 2 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.

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

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 "huge for Ethereum adoption." A screenshot showing reduced transaction costs and time is included with the message.

The integration of L2 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 now. Instead, technologies like rollups or side chains will continue to aid Ethereum 2.0 scale beyond its current capacity once sharding is completely implemented.

Tags
Blockchain
Ethereum
Cryptocurrency Exchange
Scalability
Binance
Layer2
Ethereum 2.0
Related Posts
Binance temporarily halts Polygon deposit and withdrawal to sync nodes
Binance, the world’s biggest crypto exchange by trading volume, announced earlier on Tuesday that it will be temporarily pausing deposits and withdrawals for Polygon (MATIC) Network. The announcement came in the wake of the Polygon network’s outage since March 11 after a network upgrade. The crypto exchange noted that it would reopen the deposit and withdrawal features once the network becomes stable. Polygon network is a layer-2 Ethereum scaling solution that boasts millions of users and an evolving ecosystem. The network underwent an essential upgrade on one of the three layers on March 11, but due to a suspected bug, …
Blockchain / March 15, 2022
Polygon’s focus on building L2 infrastructure outweighs MATIC’s 50% drop from ATH
After a devastating 50% correction between Dec. 25 and Jan. 25, Polygon (MATIC) has been struggling to sustain the $1.40 support. While some argue this top-15 coin has merely adjusted after a 16,200% gain in 2021, others point to competing scaling solutions growth. Either way, Polygon (MATIC) remains 50.8% below its all-time high at an $11 billion market capitalization. Currently, the market cap of Terra (LUNA) stands at $37 billion, Solana (SOL) is above $26 billion, and Avalanche (AVAX) is at a $19 billion market value. A positive note is that Polygon raised $450 million on Feb. 7, and the …
Decentralization / March 10, 2022
Vitalik: Crypto payments will 'make sense' as tx costs fall to mere cents — KBW 2022
Ethereum co-founder Vitalik Buterin has argued that crypto payments will once again “make sense” as transaction costs will soon fall to fractions of a cent due to layer-2 rollups. The Cointelegraph team currently on the ground at Korea Blockchain Week (KBW) quoted Buterin as stating that the final hurdle to getting transactions down to fractions of a cent at scale is blockchain data compression. He pointed to “solid work happening” with roll-ups at the moment such as Optimism’s layer-2 scaling solution for Ethereum, which has worked to get the size and cost of data in blockchain transactions down by introducing …
Blockchain / Aug. 8, 2022
Ethereum scaling network Arbitrum set for major upgrade on Aug. 31
Ethereum layer-2 scaling solution Arbitrum is set to undergo one of its most significant upgrades on Wednesday, set to increase transaction throughput, slash transaction fees and simplify cross-chain communication between Arbitrum and Ethereum. Referred to as the “Nitro” upgrade, Arbitrum reconfirmed the date of the upgrade in a Twitter post on Aug. 29, confirming that the upgrade will take effect on Aug. 31 at 10:30 AM Eastern Time, while noting a two to four hours of network downtime period is to be expected. Reminder — Arbitrum One is upgrading to Nitro on Wednesday 8/31. There will be 2-4 hours of …
Adoption / Aug. 30, 2022
Crypto recruitment execs reveal the safest jobs amid layoff season
Despite a wave of heavy crypto layoffs to start the new year, employees in technical and engineering roles, as well as senior management, will likely continue to see “strong demand” for their skills, recruitment professionals believe. It’s been a tough first few weeks of 2023 for crypto businesses and their staff. Within just two weeks, the market has already seen more than 1,600 crypto-related job cuts as a result of continued market volatility and uncertainty. However, not all departments have seen the same level of cuts. SAFU: Senior-level tech and engineering Rob Paone, founder and CEO of crypto recruitment firm …
Blockchain / Jan. 18, 2023