The use of Ethereum 2.0 comes to Coinbase

Coinbase, the US digital currency exchange, explained his plans to support Ethereum 2.0 stake rewards, possibly create the conditions for an even more comprehensive introduction of the smart contract platform.

In an official publication Coinbase plans to roll out Eth2’s stakeout, trading and conversion services from early 2021. As soon as Eth2 is supported, existing Coinbase clients can convert their Ether (ETH) tokens into ETH2 and earn bonuses.

The company said:

“While set ETH2 tokens remain blocked in the blockchain, Coinbase will also enable trading between ETH2, ETH and all other supported currencies that offer our customers liquidity.”

The use of Ethereum 2.0 comes to Coinbase
The use of Ethereum 2.0 comes to Coinbase

Coinbase indicated that “Each function will provide more details near the launch.”

The news comes on the eve of the eagerly awaited launch of Ethereum’s beacon chain, which will usher in a multi-year update of the blockchain network. The update will move Ethereum from its existing proof-of-work consensus to a proof-of-stake network. Ethereum’s development team claims that demonstrating its use reduces centralization risks and allows for stronger defense against 51% attacks.

Eth2 Phase 0 was confirmed last week after Ethereum’s deposit agreement hit the minimum threshold of 524,288 ETH. At the time of this writing, 855,264 ETH had been sent to the 2.0 deposit agreement.

Ethereum holders who choose to use their coins can only withdraw or transfer their stake after completing phase 1. This process can take years. Several companies, including Darma Capital, are planning the offer Intermediate stocks that allow users to continue to access their capital.

As the second largest cryptocurrency by market capitalization Ethereum is one of the most liquid assets of all cryptocurrencies. It is currently in third place by daily volume, according to Coinbase Pro processes one of the largest volumes for the ETH / USD pair.

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