Ethereum: Why is coinbase mentioned in a BIP?
Ethereum: why coinbase is mentioned in a bip
As the second largest cryptocurrency for market capitalization, Ethereum has become increasingly important for digital assets beyond its native currency. However, when it comes to decentralized finance (defi) and blockchain development, there are cases in which the name of a prominent exchange or a wallet supplier like Coinbase appears prominently.
One of those instances is in the proposal for improvement of Bitcoin (BIP 34). Written by Gavin Andresen, a figure known in the Ethereum community and former director of the Software Development Foundation, this BIP has generated great interest among developers and users equally. But what exactly is BIP 34 and why does Coinbase play a remarkable role?
What is BIP 34?
BIP 34 is part of the series of Bitcoin improvement proposals, which was published in October 2017 by Gavin Andresen as part of an effort to improve the scalability and usability of Bitcoin. The proposal introduces several key changes aimed at improving the functionality of the block chain, including improvements in the way in which new transactions are transmitted and verified.
In essence, BIP 34 is a technical implementation detail that facilitates the creation of multiple independent blockchains within the Bitcoin network. By introducing new rules for the verification of transactions and the creation of blocks, this BIP aims to increase the general capacity of the block chain, which makes it more appropriate for decentralized applications (DAPPS) and other use cases.
Coinbase’s role
Coinbase, a leading digital asset exchange, has played an important role in the promotion of BIP 34. As one of the greatest exchanges of cryptocurrencies worldwide, Coinbase has actively participated in the improvement lawyer in the Bitcoin block chain. Your participation can be attributed to several factors:
- Defense : Coinbase has long been a vocal defender of changes in the Bitcoin protocol, which presents greater scalability and usability.
- Associations
: The exchange has been associated with several developers and organizations to promote the implementation of BIP 34, including research efforts of the Ethereum Foundation.
- Community communication : By getting involved with the community through social media channels, online forums and other platforms, Coinbase has helped to raise awareness about the importance of BIP 34.
Why Coinbase is remarkable
The participation of Coinbase in the promotion of BIP 34 has raised the eyebrows among some in the Ethereum and Blockchain communities that may have expected the exchange to prioritize its own interests instead of those of the broader cryptocurrency ecosystem. However, it seems that the main motivation of Coinbase was not to promote itself, but to contribute to the improvement of the Bitcoins network.
In an interview with The Block, Gavin Andresen declared: “We have been working in BIP 34 for several years, and we believe it will be a very important improvement for the Bitcoin protocol.”
Conclusion
The mention of Coinbase in BIP 34 is a testimony of the importance of decentralization and development promoted by the community within the cryptocurrency space. While it may seem contradictory that Coinbase would prioritize their interests over those of Ethereum, their contributions have undoubtedly helped shape the address of the block chain.
As the panorama of cryptocurrencies continues to evolve, it will be interesting to see how Coinbase participation in BIP 34 is received by other communities and users. One thing is true: Coinbase’s commitment to promote technical improvements has left a lasting impact on the ecosystem as a whole.
