Coinbase platform, perhaps one of the most famous cryptocurrency trading platforms globally, has recently announced that their United Kingdom and German-based users will be able to stake Ethereum and thus earn more coins by holding them on the platform.
As per their tweet, “many countries in the EU” are now officially live for ETH staking. With the current bull market that we’re in and the undeniable hype that’s going around Ethereum nowadays, this will indeed have a considerable impact both on Coinbase platform traffic and ETH trading. As we all know by now, this kind of news is always most welcome and helps maintain the markets at high levels.
In addition to this new feature, the Coinbase platform removed the requirement of having a balance of 32 ETH – valued at around $120,960 at the time of writing this article, that was previously needed to stake. This is also fantastic news since many users could not stake their coins due to not holding that much amount on the exchange.
Coinbase platform – Ethereum’s transition to PoS (Proof of Stake)
Staking will be managed through Coinbase platform upgraded Ethereum 2.0 (ETH2) network.
According to their website:
“Ethereum is moving to a consensus mechanism called proof-of-stake (PoS) from proof-of-work (PoW). This was always the plan as it’s a key part of the community’s strategy to scale Ethereum via the Eth2 upgrades. However, getting PoS right is a big technical challenge and not as straightforward as using PoW to reach consensus across the network. “
The ETH team has also mentioned the fact that the new transition to Proof of Stake will allow for many other improvements, including better energy efficiency (since you won’t be needing that many energy mining blocks), a stronger centralization (thanks to the fact that PoS should create more nodes and better support in shard chains.
Coinbase platform General Manager for the UK and EMEA region, Marcus Hughes, stated: “We have witnessed a huge rise in customers purchasing ether in recent months and so are delighted to be in a position to offer them staking rewards for this asset”.
He also added that, apparently, there had been a massive increase in people buying ETH in the last few months. Thus he believes that simplifying staking will play a key role in bringing even more people to the already thriving ETH community.
Staking from Germany and the United Kingdom
Users in Germany and the UK will win staking rewards for keeping their coins on the platform.
“After being converted from ETH to ETH2, the coins are automatically added to Coinbase’s stake, which helps secure the blockchain and generate rewards in return. The Coinbase platform relies on behalf of its customers, making one of the most important functions of the crypto economy more accessible. “