On Fri, Binance announced the integration of the Arbitrum One core network and opened Ether (ETH) deposits on the Arbitrum One layer two.

Arbitrum is a third-generation layer-two optimistic rollup protocol that runs on an off-chain Ethereum contract and has lower costs and faster transactions than on the Ethereum mainnet.

The annunciation notes that Binance users can now deposit any ERC-20 token from the Ethereum network with Arbitrum at a reduced transaction cost. In improver, Binance too stated that it volition enable ETH withdrawals on the Arbitrum One Network layer two in the near hereafter, making it one of the first centralized exchanges with layer-two support.

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Ethereum, arguably the virtually prominent blockchain network in the world, has been hampered by network congestion and exorbitant fees, stymieing its exponential growth. Arbitrum 1 offers a solution to this problem past utilizing a multilayered Ethereum consensus protocol that allows for unlimited scalability and near-instantaneous transaction times at a fraction of the cost.

Binance's integration of layer-two ETH deposits is a significant footstep forward, coming at a time when decentralized exchanges and cantankerous-chain atomic swaps are gaining popularity in the market place. Binance is 1 of the world's largest cryptocurrency exchanges by volume, and the Arbitium integration is skilful news for Ethereum adoption.

Related: Why Interoperability Is the Key to Time to come Innovation and Adoption

The launch of the Arbitrum One Network layer two did not include an proclamation for ETH withdrawals, but it did promise that more information would be provided when this functionality is bachelor to traders. However, information technology has been reported that Binance is preparing to let users withdraw their funds directly to Arbitrum.

According to a tweet from Lark Davis, a crypto investor from New Zealand, Binance is working on allowing straight ETH withdrawals to Arbitrum. According to Lark, the integration will exist "MASSIVE for Ethereum adoption." A screenshot showing reduced transaction costs and time is included with the message.

The integration of layer-two functionality is a major footstep forrard in the right direction, as Ethereum strives toward scalability and Ethereum 2.0. It'southward worth noting that the launch of Ethereum 2.0 won't stop layer-two platforms from working to solve for scalability. Instead, technologies like rollups or side bondage will go on to aid Ethereum two.0 calibration across its current chapters one time sharding is completely implemented.