Its dAppening! Ethereum Layer 2 Goes Live On Binance
As noted by the widely popular crypto analyst Lark Davis, crypto exchange Binance has started to allow users to make direct withdrawals to Layer Two Ethereum Networks. Binance first announced plans to integrate the Arbitrum One Network and simultaneously open deposits for ETH on Arbitrum One Layer 2 back in November of 2021. After the most recent developments, users now have the ability to make withdrawals as well as deposit ETH to their Binance accounts using the Arbitrum One Layer 2 solution.
By Andrew Senior
January 14th, 2021
Taking into account the sky-rocketing fees associated with Ethereum, the demand for Layer 2 solutions saw a dramatic uptick over the course of 2021.
Binance will allow more people to use the Ethereum Layer 2 solutions like Arbitrum One without the need to use the Ethereum mainnet, saving users time and cutting down on costs. In the past, users were forced to utilize a completely different network and later bridge Arbitrum, an expensive process.
Offchain Labs developed Arbitrum One to boost the throughput on Ethereum and works by executing transactions outside the Ethereum mainnet while simultaneously storing data on it. The Arbitrum One blockchain leverages optimistic rollups which also help in reducing network congestion and gas fees while eliminating bottle-necks and increasing speed.
Binance is one of the few crypto exchanges currently supporting Layer 2 Ethereum solutions for deposits and withdrawals. Unlike centralized exchanges, which have been opened to adopt Layer 2 Ethereum solutions, decentralized exchanges like Uniswap, Aave, and 1inch, have already integrated Ethereum Layer 2.
The demand for Ethereum Layer 2 is only going to grow in large part due to the higher gas fee on Ethereum. As demand continues to increase, more centralized exchanges like Coinbase should begin offering their own solutions.
Disclaimer: The information above does not constitute investment, financial, trading or any other sort of advice and you should not treat any of the content on this site such. We do not recommend the purchase, sale, or holding of any cryptocurrency or other product. None of our content should be deemed as an offer to purchase, sell, or hold a cryptocurrency or other product or service. Please consider doing your own research and prioritize consulting a certified financial professional before making any investment decisions.