Binance integrates Ethereum Layer2 Network Optimism

Binance is optimistic about the future of Ethereum’s Layer 2. 

The most popular cryptocurrency exchange AnnouncedFriday’s integration of Optimism was added to the November 2021 Arbitrum integration. Customers will be able to deposit ETH directly into Optimism and then use a bridge in order to migrate onto Layer 2. That means they’ll be able to move their assets and access the Ethereum network at a lower cost. 

Optimism is a Layer 2 project that helps Ethereum scale. It utilizes Optimistic Rollups technology to reduce Ethereum’s traffic. The new network processes transactions and sends them to Ethereum mainnet. Optimistic Rollups are faster and cheaper than Ethereum, but they have long mainnet withdrawal times of up to a day. Optimism and Arbitrum are currently Ethereum’s two leading Optimistic Rollup solutions, already hosting the likes of Aave and other top DeFi projects. Arbitrum is currently leading the Layer 2 race over Optimism with about $2.76 billion in total value locked to Optimism’s $500 million. Optimism was the focus of attention last month as it launched its OP token. Rumours suggest that Arbitrum may follow suit with its own token. 

ZK-Rollups, another Layer 2 technology Ethereum is counting on to be more user-friendly, is also called Optimistic rollups. By leveraging a cryptographic technology known as zero-knowledge proofs, ZK-Rollup solutions offer a way to bundle many transactions together and commit them to Ethereum’s Layer One as a single proof. StarkWare, zkSync, and StarkWare are examples of ZK Rollups-related projects. 

While Ethereum’s Layer 2 space is gaining momentum, Ethereum itself also has a big few months ahead. This year, the top smart contract network is expected to ship its long-awaited “Merge” to Proof-of-Stake. While the launch date of the upgrade is not yet known, recent hints from Ethereum Foundation suggest that it may be available as soon as August. Ethereum has completed several Merge testsnets and will ship the update to the Ropsten network around Jun. 8. 

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