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Binance Has Integrated Arbitrum and Enabled ETH Deposits.

Binance Has Integrated Arbitrum and Enabled ETH Deposits.
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Binance, on November 19, 2021, has completed the integration with Arbitrum and also enabled the layer 2 $ETH deposits. https://twitter.com/binance/status/1461565999832973313?s=21

It means that the users will now be able to deposit their ETH tokens to their Binance accounts through their Arbitrum account. Also, the withdrawal for Arbitrum One network will be opened soon by Binance, says the announcement. Note that, Binance does not support the withdrawals on Arbitrum currently.

How is it beneficial for users?

Arbitrum is an optimistic rollup that allows the Ethereum participants to settle the transactions away from Ethereum Mainnet. Arbitrum scales the Ethereum network and results in quick and cheaper transactions.

This integration means that the Arbitrum users now have one more solution to move their funds into Layer-2.

Previously, the users had to go through the Ethereum mainnet to transfer funds using the Arbitrum bridge. Hence, the users can now benefit from the speed and cost-efficiency of Arbitrum, and they can directly use the platform from Binance, the world's largest crypto exchange. So, the Binance users can potentially save costs and interact with Decentralized finance projects on Arbitrum Network. Note that Arbitrum hosts many DeFi projects due to its speed and cost-effectiveness.

About Arbitrum

Arbitrum is a Layer 2 network that helps in the reduction of transaction costs and increases the speed with the use of Optimistic rollup technology. It allows the off-chain execution of the Ethereum transactions, hence reducing network congestion and increasing speed.

Many centralized exchanges, such as Binance and OKEx, and decentralized protocols, including inch, Aave and Uniswap, have integrated Arbitrum into their platforms. Coinbase also might explore the platform with time.

The primary reason for using the Arbitrum network lies in its technology that drastically reduces transaction costs and gas fees and increases speed.

Ethereum is the most popular platform for the majority of the DeFi projects in the market. But, there is always a concern about the high transaction fees and the low speed. The low speed of the network is due to the high degree of usage, which ultimately results in higher gas fees. Hence, Layer 2 solutions are often used as scalability solutions.

Note that Arbitrum is one such Optimistic rollups based scaling solution which makes use of the Ethereum consensus mechanism. The transactions are moved off layer 1, and only the required part is posted on the layer 1 chain once the transaction is completed.

Closing thoughts

This step can work wonders for Arbitrum because their number of users might increase. Until now, it was expensive for the users because they had to bridge Arbitrum through a different network. But, now, they can use the platform without the need for Ethereum.