- Coinbase has issued the latest guidelines in anticipation of The Merge.
- The Merge is a highly anticipated Ethereum event.
- Coinbase is among the leading crypto exchanges across the globe.
New Guidelines in Preparation of The Merge
The Merge is one of the most anticipated events on Ethereum blockchain which the people are eagerly waiting for. This event will shift the current proof-of-work algorithm utilized by the ecosystem to a Proof-of-Stake algorithm. Recently, Coinbase, a leading cryptocurrency exchange, revealed that the users will not be able to deposit the Bitcoin contender in their wallets.
The Merge is scheduled during mid-September. Coinbase issued a blog post on August 16, confirming that they will put a halt on ETH deposit for a short span of time in preparation for The Merge event.
The organization is taking such action to make sure that the transactions remain flawless upon the event’s arrival. The team said that users will experience a smooth experience as soon as The Merge is complete. They also confirmed that this action will not create any hindrance to other assets trading on the platform.
Ethereum
It's finally happening! Here's how we're getting ready for The Merge
— Coinbase (@coinbase) August 16, 2022
Coinbase also highlighted the chances of attacks happening ahead of The Merge, and called for vigilance. The blog also advised them to prevent sending their ETH to anyone for upgrading ETH2 token, because it doesn’t exist.
What is The Merge?
The Merge is among the most highly anticipated events in the crypto and blockchain sector. Ethereum blockchain currently works on the proof of work (pow) consensus, which is considered expensive for the miners and is extremely hazardous to the environment. This event will shift from this algorithm to proof of stake (pos).
POS and POW are a couple of leading consensus algorithms utilized by the crypto ecosystems to validate the transactions and add them to the blockchain and make tokens. Proof of Work is considered as the original algorithm to verify transactions, which came out with Bitcoin’s emergence. It needs heavy energy systems to operate, which is one of the main causes Ethereum is making this shift to make it environment friendly.
Source: https://www.thecoinrepublic.com/2022/08/17/folks-will-not-be-able-to-deposit-ethereum-on-coinbase-temporarily/