Coinbase joins Ethereum Foundation to improve ETH transaction speed and cost

  • Optimism’s team will also join the Coinbase and Ethereum Foundation teams to facilitate the EIP-4844 upgrade.
  • Coinbase is dedicating its engineering resources and EIP-4844 testing to boost crypto adoption.

On October 7, 2022, Coinbase issued an official statement saying it has chosen to support and contribute to the upcoming EIP-4844 upgrade. The upgrade will enhance layer-2 roll-ups, reducing transaction costs by up to 100 times and increasing transaction throughput. In his remarks via Twitter, Coinbase CEO, Brian Armstrong, said that the crypto exchange is proud to contribute to the Ethereum ecosystem.

He added that the company has a team developing a proto-danksharding to boost roll-ups’ capacity by up to 100 times. He also said the scalability would result in several new use cases in the crypto space. The popular exchange believes that the EIP-4844 upgrade will attract more customers into the crypto sector since the industry would be more secure, simpler to use, and with fast and less expensive transactions.

In addition, it will bring institutional developments and adoption into Web3. Apart from the Ethereum foundation team, Coinbase is also collaborating with the team from layer-2 blockchain, Optimism. This will hasten the completion of the EIP-4844 upgrade.

The crypto exchange has a team focused solely on completing and testing the EIP-4844 upgrade. The combined group has detailed specifications regarding launched Devnet v1, execution and consensus clients, Prysm and Geth, releases for the Ethereum clients, and preparations for the KZG ceremony.

The upgrade makes transaction costs cheaper by using a new transaction type to Ethereum to accept data “blobs” in the beacon node for a brief period. It minimizes disk usage and is forward-compatible. It is worth noting that any interested persons or entities, including an exchange or a roll-up, can support or contribute to the upgrade for the upcoming “Surge” development.

The Merge and Ethereum price

The EIP-4844 upgrade will result in more institutional and retail adoption. Thus, causing a jump in Ethereum’s price. The wider community, particularly businesses, will benefit from a faster transaction speed and less expensive transaction fees. Furthermore, using layer-2 roll-ups to manage large transaction volumes is an effective approach.

Ethereum’s price has been moving sideways since the beginning of the month and currently trades at $1,330. It is down 1.78 percent in the last 24 hours, according to our data.

Data from on-chain analytics firm, CryptoQuant, claims that Ethereum whales (large volume Ethereum holders) have been engaging in various exchange activities to manipulate Ethereum’s price. CryptoQuant explained that these whales moved huge volumes of their ETH tokens to exchanges to cause a spike in the token’s price.

Then, they sold these tokens at these hiked prices. The on-chain analytics firm stated that Ethereum’s price rose sharply following a rise in the token’s balances on exchanges.

Usually, an increase in the volume of Ethereum or any other token on exchanges results in a decline in their price. Hence, CryptoQuant alleges that Ethereum whales must have been involved in causing a rise in Ethereum’s price after moving their Ethereum tokens to exchanges. Then, make huge profits by selling off the tokens at higher prices.