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Ethereum: Why Coinbase is Mentioned in a Bitcoin Improvement Proposal (BIP)
As the second-largest cryptocurrency by market cap, 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 instances where the name of a major wallet provider or exchange like Coinbase appears prominently.
One such instance is the Bitcoin Improvement Proposal (BIP 34). Authored by Gavin Andresen, a well-known figure in the Ethereum community and former director of the Software Development Foundation, this BIP has sparked widespread interest among developers and users alike. But what exactly is BIP 34 and why does Coinbase play a prominent role?
What is BIP 34?
BIP 34 is part of the Bitcoin Improvement Proposal series, which was published in October 2017 by Gavin Andresen as part of an effort to improve Bitcoin’s scalability and usability. The proposal introduces several key changes aimed at improving the functionality of the blockchain, including improvements to the way new transactions are broadcast and verified.
At its core, BIP 34 is a technical implementation detail that facilitates the creation of 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, one of the leading digital asset exchanges, has played a major role in promoting BIP 34. As one of the largest cryptocurrency exchanges globally, Coinbase has been actively involved in promoting improvements to the Bitcoin blockchain. Its involvement can be attributed to several factors:
- Promotion: Coinbase has long been a vocal proponent of changes to the Bitcoin protocol, pushing for greater scalability and ease of use.
- Partnerships: The exchange has partnered with several developers and organizations to promote the implementation of BIP 34, including the Ethereum Foundation’s research efforts.
- Community Involvement
: By engaging with the community through social media channels, online forums, and other platforms, Coinbase has helped raise awareness about the importance of BIP 34.
Why Coinbase is notable
Coinbase’s involvement in promoting BIP 34 has raised questions among some people in the Ethereum and blockchain communities who might have expected the exchange to prioritize its own interests rather than those of the broader cryptocurrency ecosystem. However, it seems that Coinbase’s primary motivation was not to promote itself, but to contribute to the improvement 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 believe it will be a very important improvement to the Bitcoin protocol.”
Conclusion
Coinbase’s mention in BIP 34 is a testament to the importance of decentralization and community-driven development within the cryptocurrency space. While it may seem counterintuitive for Coinbase to prioritize its interests over those of Ethereum, its contributions have undoubtedly helped shape the direction of the blockchain.
As the cryptocurrency landscape continues to evolve, it will be interesting to see how Coinbase’s involvement in BIP 34 is received by other communities and users. One thing is certain: Coinbase’s commitment to promoting technical improvements has left a lasting impact on the ecosystem as a whole.