Binance has announced the integration of the popular Layer 2 scalable solution Optimism Network. The globe’s largest cryptocurrency exchange announced on its official website that the integration is now completed to the users’ excitement.
The integration will address scalability issues and reduce the costs of gas fees, which have been plaguing the Ethereum network. Following the completion, Binance also announced the opening of ether deposits on the scalable network.
What is Optimism?
Optimism is an L2 network built on top of L1 networks like Ethereum to ease scalability and lessen transaction costs on the blockchain. Due to the massive adoption of DeFi and rising transactions, the Ethereum chain has witnessed a significant rise in gas fees and a slow speed in transactions.
Solutions like Optimism and Arbitrum came into the picture to solve various problems regarding scalability and costs. The fees are usually processing and holding costs.
The L2 solutions take the burden off costly mainnet. When a series of crypto transactions are finalized, the outcome is sent to the mainnet and stored. What L2 does is minimize the number of transactions the blockchain needs to verify to cut processing fees and enhance speed.
Arbitrum is the leading L2 solution with a value of about $2.9 billion, almost 5x that of its rival Optimism. However, Optimism is rapidly gaining ground due to the unveiling of its OP token. Rumors reveal that Arbitrum might take a similar step to launch its native token.
ETH 2.0? How Far and How Near?
The forthcoming Ethereum merge is a highly anticipated move yet to materialize. When Ethereum announced the transition from Proof-of-Work to Proof-of-Stake last year, the crypto world was thrown into wild jubilation. The company has assured users of the finalization of the upgrade this year.
The signs are visible. A new version is under work and will be unveiled on Ropsten’s testnet next month. Analysts believe the merge will be completed in August, going by the pace of the development.
If ETH 2.0 is successful, Ethereum will have no significant milestone left on its roadmap. The good news is the network will still depend on L2 solutions to manage the massive transaction volumes.
Binance Asks Terra to Compensate Victims of Crash
The Terra crash was a heavy blow to investors. Nearly 99% of the LUNA’s value was wiped off in one week. Binance was also at the losing end of the crash after investing about $1.6 billion in the token.
Binance boss CZ said he hopes the investors are duly compensated, despite losing money. He said the company would request Terra to pay compensation to the victims.
Alongside LUNA, Terra’s stablecoin UST also shed value. The coin de-pegged to the USD.