The Californian company announced yesterday, November 30, 2020, one day before the launch of the Beacon Chain, scheduled for today, December 1, 2020, which it will support on its platform ETH2 through staking and trading. It will be possible, for ETH holders, to convert their tokens into ETH2 and, therefore, obtain rewards through staking.
While ETH2 tokens remain locked on the Beacon Chain, you will be allowed to trade between ETH2, ETH and any other cryptocurrency.
All of the above listed features will be available in early 2021.
Why this change?
What is the point of switching from ETH to ETH2?
Ethereum, launched in 2015 by Vitalik Buterin, has since then been one of the main alternatives to Bitcoin, with the creation of the so-called Smart Contract, making ETH more than just a trading currency. The validation algorithm of Ethereum, similarly to BTC, is based on PoW (Proof of Work), a feature that gives the system limited scalability and high gas prices.
ETH2 aims to solve these two main challenges that characterize the current blockchain.
The network will, therefore, no longer have the miners, but will have the validators.
What do you think? Do you think Coinbase is the right platform for you, or are you staking your tokens somewhere else?
Let me know in the comments!
If you appreciate my content, leave me one thumbs up ;)
