Binance Adds Layer-2 ETH Scaling Solution To Increase Transaction Speed

Optimism, the most popular ETH scaling solution, has been integrated into the industry’s biggest crypto exchange, Binance. The company has been receiving an influx of users who carry thousands of transactions daily. This solution will help speed up transaction rates.

Binance Adds Layer-2 Scaling Option For ETH 

Binance, the most important crypto exchange worldwide, made the announcement on its website that it has implemented the layer-2 solution.

However, at the present moment, the exchange platform only supports deposits. The exchange has said that withdrawals will not be accessible until the platform reaches its maximum liquidity.

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According to the statement included in the release, “Binance will offer withdrawals for Ethereum on Optimism’s Network whenever there are sufficient funds in our wallet.”

The Optimism solution for Ethereum aims to reduce costs and increase transaction speed. Optimism addresses the Achilles heel of many blockchain networks, which is their slow transaction rate.

As long as ETH remains the principal hub for various NFT and DeFi operations, the expenses on the blockchain network frequently soared whenever the market experienced volatility, when a famous NFT dropped in price, or when a new yield farm came up.

Scaling methods such as Arbitrum, Polygon, and Optimism came into being to resolve these specific problems.

Transaction fees on a blockchain network are essentially just the expenses of processing and maintaining the information involved in the transactions. These techniques effectively move the activity away from the more expensive mainnet. 

After a string of transactions or cryptographic operations have been completed, the outcomes of these activities (such as owners of coins and the amount) are then transmitted to the mainnet and safeguarded there. These reduce the information that a primary layer blockchain has to authenticate and secure, which helps to alleviate congestion.

According to statistics provided by Dune Analytics, the gas cost for Optimism transactions is presently around ninety-eight times less than that for ETH transactions.

Positive Prospects For The Expansion Of Optimism 

As per the statistics provided by Defi Llama, the TVL for Optimism now sits at $304.1 million, and there are over 40 distinct DeFi programs that are using the tech. This indicates that optimism’s popularity has been on the rise recently.

In addition to Binance, several other crypto exchanges have recently begun to investigate the possibility of incorporating layer-2 networks.

Arbitrum is another ETH scaling option, and FTX, the rapidly expanding exchange that Sam Bankman-Fried is leading, has just adopted it. In April, KuCoin also launched support for the optimistic cryptocurrency.

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