Cryptocurrency exchange Coinbase has released guidelines ahead of the long-awaited Ethereum (ETH) Merge upgrade. The Ethereum Merge will transition the network to a Proof-of-Stake (PoS) protocol from an existing Proof-of-Work (PoW) protocol.
The upcoming Merger is aimed at improving energy consumption and reducing carbon footprints that are produced by the existing PoW technology. The upgrade also intends to enhance the speed, efficiency, and scalability of the ethereum
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network so that it can go around the bottlenecks and process more transactions simultaneously.
Coinbase Gets Involved
On August 16, coinbase
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published a blog post stating that the exchange is set to briefly pause all withdrawals and deposits involving Ethereum until the entire Merge migration scheduled for around September 15 is completed.
The exchange declared that the move is just a precautionary measure to ensure smooth trading of ETH and other ERC-20 tokens after the migration is executed. Coinbase approved of the transition by stating that Ethereum will provide the users with a seamless experience thereafter.
Coinbase stated in the blog:
“During the Merge, Coinbase will briefly pause new Ethereum and ERC-20 token deposits and withdrawals as a precautionary measure. Although the Merge is expected to be seamless from a user perspective, this downtime allows us to ensure that the transition has been successfully reflected by our systems.”
Investor Interest Spikes
Notably, the Merge was initially scheduled for September 19. However, the date was revised in an update shared by Ethereum co-founder vitalik buterin
co-founder at ethereum, Bitcoin Magazine
Vitalik Buterin is a professional programmer and writer who is famous as the Co-Founder of Ethereum. Buterin along with Gavin Wood, Charles Hoskinson, Joseph Lubin, and Anthony Di launched Ethereum in 2014. He co-created Ethereum when he understood that he could construct a new, possibly enhanced version by iterating on the Bitcoin blockchain.
He has been involved in the Bitcoin community since 2011, writing and co-founding articles for Bitcoin magazine. Vitalik linked Bitcoin to a calculator and a future blockchain to a smartphone and used the same method of improving the system’s strength by making it more general purpose to blockchain network space.
He was honored with the Thiel Fellowship Award in 2014 for bringing his innovative scientific and technical projects to reality, won the World Technology Network prize, Fortune 40 under 40 lists, and appeared on the Under 30 list of Forbes at the age of 23.
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. As reported by Finbold, the date was revised due to fixing the number of hashes left to mine.
Nevertheless, the Merge is considered a catalyst for Ethereum’s rally. The asset has been recording an increased interest from investors ever since the announcement of the upgradation. CEO of cryptocurrency investment firm Galaxy Digital, Mike Novogratz, said that he considers the Ethereum upgrade as a point for attracting capital inflow into the asset.
Will The Other Assets Be Impacted By The Change?
Coinbase highlighted that other assets would not be impacted by a break in ETH transactions.
“We do not expect any other networks or currencies to be impacted and expect no impact to trading for ETH and ERC-20 tokens across our centralized trading products.”
The exchange also cautioned users of possible scammers intervening during the merge. Coinbase stated, “It’s important to always be on high alert for scams, but especially leading up to the Merge. We recommend you don’t send your ETH to anyone in an attempt to “upgrade to ETH2” as there is no ETH2 token. Your assets will be safe and secure during this period and no action is required to upgrade on your part.”
On August 10, Ethereum completed the Goerli public testnet merge which was its final trial before the migration from Proof-of-Work (PoW) to Proof-of-Stake (PoS) on the mainnet. Six years in the making, this milestone is aimed at reducing energy consumption for the Ethereum network by a projected 99.95% in comparison to its earlier PoW version.
ETH 2.0 is notably an upgradation of the existing platform and not a new platform. With ETH 2.0 running in the future, the fragments of ETH will always stick around.