Coinbase Unveils New Protocol for On-Chain Payments – Coinbase, a prominent U.S. cryptocurrency exchange, has introduced an Onchain Payment Protocol as part of an upgrade to its Commerce product. This open-source protocol aims to streamline and standardize on-chain payments across Base, Polygon, and various Ethereum Virtual Machine networks, providing stable payments with minimal transaction fees, as highlighted in a blog post.
Coinbase has disclosed that the objective of the new protocol is to address prevalent challenges in crypto transactions encountered by merchants and customers. This enhancement seeks to harmonize on-chain payments, guaranteeing transparency, dependability, and a uniform user experience, irrespective of the chosen platform or wallet.
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“At Coinbase we believe that on-chain is the new online. Just like the internet broke down barriers, democratized access to information, and made knowledge universally available, we believe crypto is doing the same with broader access to financial services and commerce. A big next step in our vision is to make payments faster, cheaper, and global,” Coinbase said.
As the protocol is open source, it allows other payment processors and businesses to leverage it, constructing user-friendly gateways for on-chain payments. This facilitates global transfers, making it possible for anyone with internet access to send and receive transactions worldwide. “Thousands of merchants globally have trusted Coinbase Commerce to accept billions of dollars in on-chain payments.”
“Yet, merchants often struggle with crypto volatility, while consumers find the payment experience daunting. Our updated Commerce product solves these challenges by providing a more seamless experience designed to tackle common crypto transaction issues. Commerce enables anyone with an internet connection an easy way to accept payments from customers around the globe,” the crypto exchange added.
The Coinbase Onchain Payment Protocol offers numerous advantages to crypto merchants, including rapid payment settlements, compatibility with various networks, and seamless integrations. Also, customers benefit from pre-configured payments, support for retail transactions, and immediate payment confirmation.
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Despite challenging market conditions, Coinbase persists in developing and rolling out updates. The recent introduction of Base, now among the prominent scaling layer-2 networks on Ethereum alongside Arbitrum and Optimism, attests to this commitment. Within a few months of its launch, Base has emerged as the fastest-growing layer-2 blockchain, accumulating millions of unique addresses.