Cryptocurrency exchange Coinbase has discontinued support for native Bitcoin and Other Unspent Transaction Output (UTXO) coins in its merchant payments service Coinbase Commerce.
Lauren Dowling, head of product at Coinbase, said in a Feb. 18 thread on It was revealed that it was caused by.
The updated Coinbase Commerce product details each payment on the blockchain, supports a wide range of assets including native and ERC-20 tokens, and provides guaranteed rates for merchants to send payments to USDC on the blockchain. is designed to automatically convert to . The lack of smart contracts and stablecoins on the Bitcoin blockchain was a major hurdle, leading to the decision to remove support for native Bitcoin and other UTXO-based coins.
However, Coinbase CEO Brian Armstrong pointed out that Bitcoin users can still use Coinbase Commerce if they have an account on the exchange.
Armstrong also noted that the Lightning Network's integration into Coinbase is underway and expressed optimism that commerce payments will be possible through the protocol in the future. The Lightning Network aims to facilitate faster and more cost-effective transactions on the Bitcoin Blockchain.
Armstrong elaborated on his broader vision for crypto payments, emphasizing the need to move beyond the basic layer of blockchain (Layer 1) to reduce transaction fees and confirmation times. He believes this change is important for the mainstream adoption of cryptocurrency payments online.
The UTXO model that Bitcoin uses to track transactions emphasizes transparency and security. This model differs from Ethereum's account-based system, which is more flexible and similar to traditional banking. Other cryptocurrencies forked from Bitcoin also use his UTXO model, including Dogecoin, Litecoin, Dash, and Bitcoin Cash.
Coinbase's decision has sparked debate within the crypto community, with some voicing concerns about the impact on Bitcoin's adoption.critic claim This measure assumes all customers are located in the United States, is willing or able to open a Coinbase account, and requires all customers to make a bank transfer to a specific bank for payment. It is similar to that.
