Binance integrates Ethereum Layer 2 scaling solution Optimism

May 22, 2022 0 Comments

The world’s largest cryptocurrency exchange Binance announced on Friday that it has integrated the layer 2 scaling solution Optimism, allowing users to deposit ETH to Optimism without having to deposit on Ethereum mainnet.

Using optimistic rollups, Optimism is a layer 2 scaling solution for Ethereum aimed at helping reduce costs and improve transaction speeds.

Data from Defi Lama, Ethereum so far is still the primary chain for various Defi and NFT activities, with a total value locked (TVL) standing at $70.3 billion and nearly 486 different DeFi protocols using the technology.

However, the cost on the Ethereum network routinely remain high due to network congestion and market volatility.

The transaction costs are the cost of processing and storing information.

The gas cost of Optimism, for example, is currently 98 times lower than that of Ethereum, according to data from Dune Analytics. 

Optimism and Arbitrum are currently Ethereum’s two leading Optimistic Rollup solutions, which have advantages over Ethereum’s layer 1 networks in terms of speed and transaction costs.

According to on-chain data tracked by Defi Llama, Optimism has a total value locked of USD304.1 million on its chain, and nearly 40 different Defi projects using its technology.

Besides Optimistic Rollups, ZK- rollups is another layer 2 scaling solution of Ethereum.

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