The largest American Cryptocurrency exchange, Coinbase, has decided to contribute to the latest evolution in the cryptocurrency and Blockchain space. Therefore, this draws attention to the Ethereum 2.0 migration from Proof of Work to Proof of Stake. With the Ethereum 2.0 beacon chain launching on December 1, hours before the launch, Coinbase confirmed this in an official blog post. This simply means that Coinbase will facilitate ETH conversion to ETH2 for users in their respective Coinbase accounts, thus earning staking awards.
On December 1, the Ethereum Beacon Chain will launch, beginning a multi-year upgrade to Ethereum 2.0 (ETH2). Coinbase intends to fully support ETH2 through staking and trading. Read more here:
Enabling Staking and Trading in ETH2
The official blog post further elucidated that the ETH2 tokens will have an undefined locking period on the Beacon Chain. However, the community seems agreeable, resulting in deposits exceeding the minimum goal for contract deposits. The community seems to have surpassed the minimum criteria required to kickstart the migration to the POS algorithm by depositing over 8,55,000 staked ETH. Coinbase also announced that the above features would be accessible to customers depending on various eligible jurisdictions commencing 2021. It further informed that they would communicate more about the features closer to the launch.
The inception of Ethereum in 2015 has led to opening the world full of possibilities. The enlargement of a vivid developer community has resulted in building the foundation of modern finance. It has built a decentralized ecosystem through various dApps like decentralized games, lending platforms, prediction markets, etc.
Furthermore, it pointed out the significant challenges that ETH2 intends to solve in the blockchain space. Firstly it aims at solving limited scalability, which is a major hindrance in the adoption of Ethereum. The second one being higher transaction costs. This is one of the significant pain points of the user. Moreover, limited scalability results in higher costs due to the demand of executing large number of transactions. Additionally, Coinbase intends to contribute to this major milestone for the Ethereum community and thus aims to roll out ETH2 for the entire crypto community.
Recently Coinbase also faced network congestion, thus delaying Bitcoin withdrawals. The recent Compound Oracle attack, which resulted in the liquidation of $100 Million, was due to an error in DAI pegged data supplied by the centralized Coinbase oracle.
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