Binance Integrates Layer 2 Solution, Arbitrum

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Evening

So today Binance announced integration of Arbitrum One mainnet, a third-generation layer-two optimistic rollup protocol. This will allow Binance users to deposit any ERC-20 token using Arbitrum at a fraction of cost.

Arbitrum uses a technique called rolling up to record batches of transactions posted on Ethereum main chain and process them on a scalable layer 2 sidechain. The whole process unburdens the Ethereum main chain by taking away complex computations and heavy data storage.

As per Binance withdrawals to Arbitrum will also be allowed in near future. This makes Binance the first centralized exchange a layer 2 scaling solution support.

Ethereum network has been borked by network congestion and exuberant transaction fees impeding its exponential growth. Arbitrum One offers solutions by utilizing a multilayered Ethereum consensus protocol that allows almost unlimited scalability and instantaneous transaction settlement at a fraction of cost. Binance is world's largest crypto exchange and Arbitrum integration is a huge for Ethereum, especially in these times when a number of promising chains are emerging.