Coinbase expects the Shanghai upgrade to

Coinbase expects the Shanghai upgrade to

America's largest cryptocurrency exchange expects a flood of staking payout requests after Ethereum developers activate functionality next month.

Coinbase announced details on Wednesday about how the upgrade will affect the business, but said that it could take "weeks to months" for the inquiries to be completely processed.

Shapella comes

in a blog entry in this matter explained coinbase that the upcoming upgrades by Shanghai and Capella (summarized as Shapella) Ethereum users will enable their ether (Eth) to be removed for the first time since the Beacon chain started in 2020.

While the execution layer of Ethereum officially " merged " with his Beacon chain in September 2022. This has created a temporary situation in which staking providers such as Coinbase can allow users to stake ETH on their platform-but not to withdraw.

After Ethereum completed his Goerli test network upgrade on Tuesday, the official introduction of Shapella is expected for around mid-April.

"Unstact requests are opened for all coinbase customers at the same time and forwarded to the Ethereum protocol and put into the queue depending on the entrance," wrote Coinbase. As the company states, staking requests are processed on-chain and only act as a "management" to forward unsetitive ETH to the customer as soon as they have been released by the protocol.

Unstaking requests are provided by the users' coinbase accounts about 24 hours after completing the upgrade. After the request, customers have to expect a waiting time.

"Customers may have to remain patient," said the stock exchange. "We assume that the Ethereum Protocol will need weeks to months to process unstable requests immediately after the upgrade."

To take this into account, Coinbase offers its users a liquid staking option called CBeth as derivative of the stubborn ETH on the platform. In this way, stakers can effectively act the ETH while it is still blocked, with the promise of a redemption at a later date.

attack on staking providers

Companies like Coinbase Earn may not have long been in the United States: The Securities and Exchange Commission (sec) recently forced rival Exchange Kraken to close their staking service and to impose a fine of $ 30 million.

The commission claimed that the product was an unregistered offer of securities criticism said that octopus was not given a reasonable way to register with the agency.

Coinbase was such a loud critic and made several public arguments why staking services do not exist-the standard of the second for identification one Investment contract.

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