The integration of the layer-two functionality will be a big step in the right direction as Ethereum strives for scalability and Ethereum 2.0. It’s worth noting that the introduction of Ethereum 2.0 won’t stop the secondary platform from addressing scalability issues. Once sharding is fully implemented, technologies like aggregation or sidechains will continue to help Ethereum 2.0 expand its current capacity
Binance Opens Layer 2 ETH deposits
According to an announcement on November 19, Binance has integrated the Arbitrum One core network and the opening of Ether (ETH) deposits on layer 2 of Arbitrum One.
The announcement states that Binance users can now use Arbitrum to deposit any ERC-20 token from the Ethereum network at lower transaction costs. In addition, Binance also stated that in the near future it will allow ETH withdrawals on the layer-two of Arbitrum One Network, making it one of the first centralized exchanges to support layer two.
Arbitrum is the third generation layer two optimistic aggregation protocol that runs on the off-chain Ethereum contract and has lower costs and faster transaction speed compared to the Ethereum mainnet.
Arguably the most famous blockchain network in the world, Ethereum has been hampered by network congestion and high fees, which is hindering its exponential growth. Arbitrum One offers a solution to this problem through the use of a multi-layered Ethereum consensus protocol that allows for unlimited scalability and near-instant transaction time at a very low cost.
Binance’s integration of layer 2 ETH deposits is an important step forward as decentralized exchanges and cross-chain atom swaps become increasingly popular in the market. Binance is one of the world’s largest cryptocurrency exchanges by trading volume, and the Arbitium integration is good news for the Ethereum rollout.
Layer 2 ETH Withdrawals Unavailable
The start of layer 2 of Arbitrum One Network did not include the announcement of ETH withdrawals but does promise that more information will be provided when traders can take advantage of this feature. However, Binance is reportedly preparing to allow users to withdraw funds directly to Arbitrum.
Binance is working to enable ETH to withdraw directly from Arbitrum, according to a tweet from Lark Davis, a cryptocurrency investor in New Zealand. According to Lark, the integration will be a “mass adoption of Ethereum”. The message includes screenshots showing reduced transaction costs and time.