Ethereum: Why Coinbase is Mentioned in BIP
As the second largest cryptocurrency by market cap, Ethereum has become increasingly important for digital assets beyond its native coin. However, when it comes to decentralized finance (DeFi) and blockchain development, there are times when a prominent exchange or wallet provider like Coinbase comes to mind.
One such example is the Bitcoin Improvement Proposal (BIP 34). Written by Gavin Andresen, a well-known figure in the Ethereum community and former director of the Software Development Foundation, the BIP has attracted widespread interest from developers and users alike. But what exactly is BIP 34, and why is Coinbase playing a significant role?
What is GDP 34?
BIP 34 is part of the Bitcoin Improvement Proposal series, published by Gavin Andresen in October 2017 to improve the scalability and usability of Bitcoin. The proposal introduces several key changes to improve the functionality of the blockchain, including how new transactions are broadcast and verified.
Essentially, BIP 34 is a technical implementation detail that makes it easier to create multiple independent blockchains within the Bitcoin network. By introducing new rules for transaction verification and block creation, this BIP aims to increase the overall capacity of the blockchain, making it more suitable for decentralized applications (dApps) and other use cases.
Coinbase’s Role
Coinbase, a leading digital asset exchange, has played a major role in promoting BIP 34. As one of the largest cryptocurrency exchanges in the world, Coinbase has been actively involved in supporting the development of the Bitcoin blockchain. Their involvement can be attributed to several factors:
- Advocacy
: Coinbase has been a long-time advocate for changes to the Bitcoin protocol to improve scalability and usability.
- Partnerships: The exchange has partnered with various developers and organizations to help implement BIP 34, including the Ethereum Foundation’s research efforts.
- Community Engagement
: By reaching out through social media channels, online forums, and other platforms, Coinbase has helped raise awareness of the importance of BIP 34.
Why Coinbase is noteworthy
Coinbase’s involvement in promoting BIP 34 has raised eyebrows among some members of the Ethereum and blockchain communities, who might have expected the exchange to be putting its own interests first, rather than the interests of the broader cryptocurrency ecosystem. However, it appears that Coinbase’s primary motivation was not to promote itself, but to contribute to the development of the Bitcoin network.
In an interview with The Block, Gavin Andresen stated, “We’ve been working on BIP 34 for several years, and we think it’s going to be a very important development for the Bitcoin protocol.”
Conclusion
Coinbase’s inclusion in BIP 34 demonstrates the importance of decentralization and community-driven development in the cryptocurrency space. While it may seem counterintuitive to see Coinbase putting its own interests ahead of Ethereum’s, their contributions have undoubtedly helped shape the direction of the blockchain.
As the cryptocurrency landscape continues to evolve, it will be interesting to see how other communities and users respond to Coinbase’s participation in BIP 34. One thing is for sure: Coinbase’s commitment to advancing technical advancements has left a lasting impact on the ecosystem as a whole.