Coinbase announces support for Ethereum 2

Written by: Ali Raza
December 1, 2020
  • Coinbase recently published a new blog post in which it revealed plans to add ETH2 staking.
  • The exchange did not publish a specific date when staking and accompanying features will arrive.
  • For now, it is only known that Coinbase will add support for it in early 2021.

US-based cryptocurrency exchange, Coinbase, recently revealed plans to add support for the upcoming Ethereum 2.0 staking. Some theorize that, by doing this, the exchange might be setting the stage for the wider adoption of Ethereum’s platform.

Coinbase to add ETH2 staking support

Coinbase made its announcement in a recent blog post that explained that the exchange aims to introduce ETH 2.0 staking, conversion services, as well as trading. The exact date when these new features might be introduced is not known. However, Coinbase did point out that it will come early in 2021.

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As soon as Ethereum 2.0 is supported, Coinbase users will be able to convert any ETH coins that they may already own into ETH2. After that, they can start earning staking rewards.

Coinbase did not wish to reveal too much information at this time, noting that additional details will be released as the launch of each new feature comes closer.

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Ethereum’s Phase 0 was confirmed

The exchange’s announcement came at an interesting time — right before the Ethereum Beacon Chain launch. The launch will bring a multilayer upgrade to Ethereum’s network, eventually leading to Ethereum’s transition from PoW to PoS.

In doing so, Ethereum (ETH) will improve its security and speed, become more resistant to 51% attacks, and it will reduce centralization. The transfer comes in several phases, with Phase 0 already confirmed last week.

This phase consisted of launching Ethereum’s deposit contract, which was supposed to be up for a limited time, and it needed to gather a minimum threshold of 524,288 ETH. While at first, it seemed like the move will fail due to the lack of interest, the contract soon started filling up with coins.

At the time of writing, there are over 855,260 ETH coins sent to the contract. As for those who opt to stake their cryptos — they will not be able to withdraw or use them until Phase 1 is finished. However, it is worth noting that this is a process that could, in theory, take years to complete, which explains why some ETH users were hesitant regarding joining the move.