The decentralized protocol Ethereum has garnered much hype in recent times as it is fast becoming the second most significant cryptocurrency after Bitcoin.
Coinbase, the US-based cryptocurrency exchange, announced supporting Ethereum 2.0 staking on its platform on November 30, allowing its customers to convert their ETH tokens to Eth 2 Tokens and earn the staking rewards.
Coinbase Supports Ethereum 2.0 Staking
The move is considered a substantial step from the popular crypto exchange as it heads to completely embrace the Ethereum 2.0 network upgrade.
Ethereum 2.0 ‘Proof of Stake’
Coinbase announced on its official blog that the “Ethereum 2.0 Staking rewards are coming soon” as Ethereum launches the 2.0 upgrade on December 1.
With its 2.0 upgrade successfully confirmed, major crypto wallets and exchanges are gearing up for its full support as the Upgrade is set to stop the ETH mining for ‘Proof of Stake’ consensus for validating. As the Ethereum 2.0 beacon chain is slated for December l launch, the multilayer upgrade on the blockchain would start the transition of Ethereum from the “Proof of work” to “Proof of stake ”network.
As per the Ethereum team, this reduces the risks of centralization and enables the system to more stringently defend itself against the attacks.
The exchange aims to support the upgrade by facilitating staking and trading on its platform. The announcement further noted that the Eth 2 tokens would be locked on the beacon chain; the exchange would allow users to trade in ETh2 and ETH tokens and other crypto supported on its platform to avail better liquidity.
The features would be rolled out for the various regions eligible as per the jurisdictional rules starting 2021. Coinbase further added that as the Ethereum protocol grows into a highly adapted and evolved decentralized lending protocol solving the challenges of low scalability and high gas prices in blockchain, the company is excited about the Eth2 Milestone.
Coinbase announced support for Ethereum 2.0 staking just a few days after the competitor exchange Kraken announced the same on November 24 in a tweet, congratulating Ethereum for reaching the staking target and launching the Ethereum 2.0 Beacon chain.
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