Binance integrates Arbitrum One, opens layer-two ETH deposits

By: Daniela Kirova
Daniela Kirova
Daniela was born in Bulgaria, grew up in Chicago, and then moved to Michigan to attend the University of… read more.
on Nov 19, 2021
  • Binance users can deposit any ERC-20 tokens from the Ethereum network using Arbitrum
  • Ethereum’s rapid growth has been stifled by issues like network congestion
  • Binance’s integration of layer-two ETH deposits is a giant leap forward

Binance (BNB/USD) announced Arbitrum One core network integration and opened Ether (ETH/USD) deposits on the Arbitrum One layer two, CoinTelegraph reported. Now, it’s possible for Binance users to deposit any ERC-20 tokens from the Ethereum network using Arbitrum quickly and affordably.

Lower costs, higher speeds

Arbitrum is a third-generation layer-two protocol with higher speeds and lower costs than the Ethereum mainnet. It runs on an off-chain Ethereum contract. Binance added that it would enable ETH withdrawals on the Arbitrum One Network layer two in the near future. This would make it among the first CEXs featuring layer-two support.

Arbitrum solves issues with network congestion

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While it remains the most prominent blockchain network across the globe, Ethereum’s rapid growth has been stifled by issues like network congestion and huge fees. By using a multilayered Ethereum consensus protocol that allows for near-instant transactions and unlimited scalability at a fraction of the cost, Arbitrum will solve these issues.

A giant leap forward for Binance

At a time when cross-chain atomic swaps and decentralized exchanges are gaining popularity in the market, Binance’s integration of layer-two ETH deposits is a giant leap forward. The Arbitium integration is good news for Ethereum adoption, and Binance is the biggest cryptocurrency exchange by volume in the world.

Funds withdrawn directly to Arbitrum

Reportedly, Binance will allow users to withdraw their funds directly to Arbitrum. So far, there has been no announcement about ether withdrawals with the launch of the Arbitrum One Network layer two.

According to New Zealand crypto investor Lark Davis, Binance is working on allowing direct ETH withdrawals to Arbitrum. He tweeted:

HOLY COW!!!!! Binance about to enable layer two withdrawals directly to Arbitrum, this is MASSIVE for Ethereum adoption!

Rollups and side chains will still help ETH scale

As Ethereum strives toward scalability and Ethereum 2.0, layer-two functionality integration is a huge step in the right direction. Still, the launch of Ethereum 2.0 won’t stop layer-two platforms from contributing to improved scalability.

Technologies like side chains and rollups will keep helping Ethereum 2.0 scale following full implementation of sharding.  

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