Coinbase, the most popular cryptocurrency exchange in the United States, has released a new update explaining Ethereum’s impending switch to proof-of-stake, which may allow forks to be integrated. On Thursday, the platform said that it would conduct a comprehensive assessment of any potential splits in the Ethereum blockchain.
Coinbase Will Evaluate PoW-Based ETH Forks Following The Merge
Prior to the expected Ethereum Network changeover on September 10th–20th (The Merge), the cryptocurrency exchange indicated that it had a plan to temporarily freeze deposits and withdrawals of tokens Ether (ETH) plus ERC-20.
Following the upgrade, if a PoW fork of ETH were to develop, Coinbase stated in a tweet that it would conduct a thorough evaluation of the asset, as it does with every other asset listed on its exchange. The company claimed that Coinbase’s ultimate goal is to list all assets after ensuring their legality and security. Additionally, they will examine the ETH fork in accordance with their regular policy about the listing of assets.
A number of ETH-related crypto firms and exchanges have made public announcements informing their customers of the preparations that need to be taken before The Merge to PoS. Others are optimistic that blockchain’s energy usage may be reduced rapidly, that scalability can be significantly improved, and that the network’s resilience can be increased to better withstand attacks.
Tokens based on Ethereum’s ERC-20 standard are released.
Customers’ reactions to a PoW-based forked cryptocurrency published on Coinbase or any other exchange following Ethereum’s PoS switch are yet unknown. On Wednesday, the venue unveiled a commemorative coin called the “ERC-20.” The objective of Ethereum’s respective token was to give users access to their staked ETH and reward mechanisms.
On Thursday, Binance announced that the exchange may support the newly emerging coins created with a possible hard fork, but that it would not guarantee the listings before conducting a review process. BitMEX previously made such a statement on August 8 and added that the corresponding offering was highly speculative.