Coinbase, the largest cryptocurrency exchange in the United States, is preparing to suspend Ethereum-based deposits and withdrawals during its upcoming “merger” upgrade in September.
Coinbase posted a blog post on Tuesday outlining what to expect from both Coinbase and Ethereum after the long-awaited transformation of the network.
Working to ensure a smooth transition:
According to Coinbase’s announcement, the suspension will affect all transactions of Ethereum and coins built under the ERC-20 standard, and the purpose of the suspension is to ensure that the upgrade is properly reflected on Coinbase’s internal systems.
Asset trading on Coinbase is not actually expected to be affected.
From the users' point of view, the integration is expected to be seamless.
Coinbase said in a statement:
We view this event as a major step towards expanding the adoption of the cryptocurrency economy and will support it in many ways that are in line with our mission to increase economic freedom in the world.
“Merge” is the nickname for the long-awaited six-year Ethereum upgrade.
The protocol's consensus mechanism will shift from Proof of Work (POW) to Proof of Stake (POS), reducing power consumption by 99.95%.
The move also paves the way for a roadmap for scaling Ethereum, which will help it address issues related to high transaction costs.
After completing the integration of Goerli's public testnet last week, the merger is finally scheduled to take place on September 15.
Prior to the event, Coinbase advised users to beware of merger scams, which could reach users' money, as thieves can impersonate Ethereum 2.0 by claiming to convert old Ethereum coins to ETH2, or distribute them for free when doing some deceptive steps.
Currently there is no numeric code associated with the upgrade.
Coinbase said:
Your assets will be safe during this period and no upgrade action is required on your part.
What about pooling ethereum?
Coinbase said that any Ethereum deposits currently stored with the platform will be included in users' ETH balance after the merger.
Balances will continue to be offered separately, and withdrawals are not expected to be available until early 2023.
More than 10% of all Ethereum in circulation is currently locked in as ETH restricted to the ETH 2.0 Deposit Contract.
Posted using Tribaldex Blog