Fast and cheap Ethereum hits another exchange with Arbitrum and Optimism

Fast and cheap Ethereum hits another exchange with Arbitrum and Optimism

Key facts:
  • Optimism can be used to deposit funds to the exchange and Arbitrum can be used to withdraw them.

  • Currently, these rollups reduce a rate reduction greater than 80%.

KuCoin cryptocurrency exchange already supports transactions with Arbitrum and Optimism, two scalability solutions for the Ethereum network. With these additions, the platform now allows trading with ether (ETH) paying much lower commissions than usual on this network.

In a release issued by the exchange itself, it is detailed that Arbitrum is available for withdrawals from the accounts in it. Meanwhile, also he has communicated what it is possible to use Optimism to deposit the cryptocurrency on the platform. For both cases, it is explained, the user must enter the configuration of his account and select the network in which he is going to operate.

In this way, KuCoin joins the list of cryptocurrency exchanges that support these scalability solutions to use Ethereum. As this newspaper has reported, other platforms such as Huobi, Binance, Ramp Network and Uniswap already allowed the use of these tools.

Advertising

Fast and cheap Ethereum hits another exchange with Arbitrum and Optimism

Arbitrum and Optimism are second layer solutions for the Ethereum network. This means that they do not work over your main network, but they do interact with it. More precisely, it is about two rollupsinstruments that allow “wrapping” or “rolling up” (hence its name roll-up) many transactions and then add them all together to the block chain.

Fast and cheap Ethereum hits another exchange with Arbitrum and Optimism
Arbitrum and Optimism, now available on the KuCoin exchange. Source: Screenshot/ kucoin.com

What is achieved with this? Faster and cheaper transactions. each type of roll-updepending on whether it is zero knowledge (zk or zero knowledge) or optimistic type, promises a certain number of transactions per second (TPS).

According to etherscan, currently Ethereum’s TPS is 13.1. Instead, as CriptoNoticias has reported, some rollups They promise up to 20,000 TPS, beyond the fact that their use has not spread that much yet and they have not come to demonstrate that potential.

Advertising

Fast and cheap Ethereum hits another exchange with Arbitrum and Optimism

Rollups as a resource to use cheaper Ethereum

Beyond the number of transactions, which is undoubtedly an important advantage in terms of Ethereum’s scalability, one of the main premises of rollups is to solve the problem of rates when using this network. According to data from ycharts.com, average Ethereum fees at the close of this note reach USD 2.1.

Comparative table with the transaction cost according to the ethereum rollup used
Some rollups allow you to send and receive ETH paying just pennies in fees. Source: l2fees.info

Instead, as you can see in the graph above, these commissions decrease considerably when using rollups. Taking into account the average fee of USD 2.1, Arbitrum offers a reduction of more than 80%, while Optimism raises the savings to 90%. These solutions can even be applied for the exchange of tokens and the interaction with smart contracts, two functionalities of Ethereum that are usually more expensive than the shipment of the ether cryptocurrency.

See also  Main Ethereum software is now ready for the merger

Leave a Comment

Your email address will not be published.