Binance integrates Ethereum Layer 2 network Arbitrum One

Nov 19, 2021 | The Block News | 0 comments

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Crypto exchange Binance announced Friday that it has completed the integration of Arbitrum One, an Ethereum Layer 2 network developed by Offchain Labs.

The integration currently works for ether (ETH) deposits, meaning Binance users can now directly deposit their funds on the exchange through Arbitrum One without using the Arbitrum bridge.

Until now, users had to first move funds from Arbitrum to Ethereum through the Arbitrum bridge. With the direction integration, Binance users will have faster access to funds for trading.

Binance said it has assigned users ETH deposit addresses on the Arbitrum One network. Arbitrum One is live on mainnet but is still in a beta phase.

Binance will also enable withdrawals on Arbitrum at a later date, said the exchange, without specifying a timeline. Once that option is enabled, Binance users will be able to withdraw their funds on Arbitrum faster and at a much cheaper cost.

Arbitrum, being a Layer 2 network, helps reduce transaction costs using Optimistic rollups technology. Rollups allow executing Ethereum transactions off-chain, thereby reducing the network congestion, increasing its speed, and reducing gas fees.

Binance is one of a few major centralized exchanges that have completed integrating a Layer 2 network. OKEx has also integrated Arbitrum’s network. Coinbase recently announced its plans to integrate Polygon’s Layer 2 network but is yet to support it. Coinbase has also said that it will explore Arbitrum, Optimism, and Starkware’s Layer 2 networks over time.

Decentralized protocols, on the other hand, such as Uniswap, 1inch, and Aave, have integrated Arbitrum’s and other Layer 2 technologies into their platforms.

Binance’s Arbitrum integration comes at a time when Binance Smart Chain (BSC) validators are complaining that the network is poorly run.

“BSC is a lost cause,” one GitHub user posted earlier this week, for instance. “There is zero responding to bug reports. Hundreds of people report non syncing nodes or nodes falling out of sync. Response from the ‘developers’ – zero.”

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

News Source from TheBlockCrypto.com

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