Coinbase Adopts Ethereum’s Constantinople for Facilitating Merchants USDC Payments
Coinbase, a San Francisco-based cryptocurrency exchange is taking advantage of Ethereum’s latest Constantinople upgrade to enable thousands of merchants around the world to accept USD Coin (USDC) through the Coinbase Commerce app, according to reports on August 14, 2019.
Coinbase Integrates Constantinople
Per sources close to the matter, Coinbase has adopted Ethereum’s Constantinople to enable thousands of merchants all over the world to receive USDC stablecoin as payment for their goods and services.
CREATE2 is the feature that is being employed to facilitate USDC payments, and it was activated on the Ethereum blockchain as part of Constantinople earlier in February 2019.
Launched in February 2018, the Coinbase Commerce app allows online merchants to accept various crypto payments including bitcoin (BTC), ether (ETH), litecoin (LTC), bitcoin cash (BCH) and USD Coin (USDC).
Coinbase in a blog post on August 14, 2019, said facilitating payments with a stablecoin makes it a great option for commerce as it eliminates the price volatility prevalent in other assets.
In the same vein, Bojan Joveski, Coinbase Commerce software engineer while explaining how the USDC solution works said CREATE2 is the latest update to the Ethereum community and it is very important because it facilitates workflows that were impossible or impractical before.
Joveski also stated that smart contracts on Coinbase Commerce which enable USDC tokens to be sent and received only have to interact and pay fees to the Ethereum blockchain for the final settlement to occur.
On the contrary, initial smart contracts interactions take place off-chain which can be attributed to CREATE2, because without it, there will be a need to deploy to the blockchain to show users the address they need to pay to. He said:
“[With CREATE2] I can show you an address that doesn’t exist on the blockchain but that you can pay to.“
As a result, it reduces gas costs when using Coinbase Commerce and discourages the creation of fraudulent payments.
Furthermore, there are expectations that with the implementation of this upgrade, Coinbase Commerce will also support other ERC-20 tokens on the Ethereum network.
He also noted that the CREATE2 feature can have other use cases besides payments just by using the same structure, which was used to design the smart contracts to enable USDC payments.
In related news, BTCManager on July 10, 2019, informed that Coinbase may be hatching plans to launch an insurance company in collaboration with AON.