The term scalability might be a bit new for crypto enthusiasts and traders out there. It basically refers to the ability of a cryptocurrency to cope with a large number of incoming transactions. As the very of the crypto is rooted in the cyber domain, it needs to have strong virtual protection as well as organization. In other words, it should be as real as it can get online.
The scaling race
The Scaling problem in the crypto market is quite big. For instance, Bitcoin cannot handle more than 7 transactions per second. It might sound okay to a layperson. However, most day traders of cryptocurrency trade at a very high pace. Moreover, the popularity of crypto is rising exponentially. Thus, a sort of scaling race has begun among cryptocurrencies. For this, Binance has integrated Ethereum’s layer-2 protocol “Arbitrum”. By doing so, Binance will now be able to store Arbitrum deposits on its platform (Ethereum). This layer-2 upgrade is done in order for Binance and Ethereum to remain the biggest cryptocurrency and a platform for the same by volume.
Most of the ETH community has reacted positively to this move. For them, it would mean that everyone would be on a more equal level. Before, anyone who was able to pay a bigger commission (at least with Bitcoin) would take priority in the queue of transactions. This move of ETH will make sure that the transactions of everyone in the community become as smooth as possible without any blockage.