Coinbase Announces Staking Rewards ETH 2.0, Launching in early 2021

Key Takeaways

  • Ultimately, the ETH 2.0 upgrade will prevent ETH mining in favor of Test of Stake consensus by staring and validating.
  • Coinbase announced on November 30 that it would support ETH 2.0 sticking.
  • Coinbase customers will be able to convert ETH to ETH 2 and win stunning rewards among other features.

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Coinbase’s announcement that it will support ETH 2.0 staking awards is a big step in adopting the Ethereum network upgrade.

Pundits claim that Proof of Stake (PoS) is a more energy efficient and sustainable method of validating transactions. The new upgrade should allow Ethereum to process far more transactions per second than the current Work Proof (PoW) system.

The upgrade will take place over the next few years, and Coinbase has indicated that the exchange is ready to play a big role by enabling users to participate in ETH 2.0 and secure the network.

Coinbase’s New Role in Ethereum

According to Coinbase, its users will soon convert ETH to ETH2 and win astounding rewards in their Coinbase accounts.

Beyond that, the exchange will facilitate trading between ETH and ETH2, among other supported cryptocurrencies.

There is no set date for the new feature to be introduced, and it seems that customers may receive staking privileges at different times. Coinbase has indicated that customers in eligible jurisdictions will begin accessing the new features of ETH 2.0 starting in early 2021, with more details to be announced in the coming months.

Coinbase praised the Ethereum upgrade as an exciting development aimed at tackling gas scalability and prices, saying:

“We are excited about this major milestone for ETH2, and the potential that ETH2 is finally rolling out for the entire cryptocurrency community.”

The Kraken exchange will also support ETH 2.0 stickers, announcing on November 24.

As with Coinbase, more details and launch dates are to follow.

The early adoption by two of the industry’s major exchanges shows that the crypto community will have an increasing number of options for ETH 2.0 waiting over time.

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