156 – Coinbase, one of the world’s largest cryptocurrency exchanges, announced the launch of a new open-source payments protocol called Coinbase Commerce. The new protocol is designed to improve the security, scalability and efficiency of Coinbase Commerce, which is currently used by millions of merchants worldwide.
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The new protocol is based on an “Onchain” payment system, which allows users to make payments using a blockchain in a more efficient way. The new protocol seeks to make these types of transactions faster and more liquid at the time of execution, as they are often limited by the difference between supply and demand.
Coinbase with its new update aims to accept hundreds of cryptocurrencies and wallets from various platforms in order to provide greater facilities to the trader, which is often limited due to the lack of accepted cryptocurrencies or the origin of their wallet. This is why many P2P marketplaces do not explode, as users tend to migrate to exchanges that have better rates and greater accessibility.
Coinbase since its founding in 2012 has positioned itself as one of the leading exchanges in the crypto sector due to its long experience and constant innovations. The products and services that have stood out the most are the cryptocurrency exchange platform, custodian services
A clear example of this is that in 2022 the company recorded a trading volume of $682.8 billion, representing an increase of 166% over the previous year. The company also recorded a net profit of US$3.6 billion, representing an increase of 800% over the previous year.
The new Onchain protocol may help the company increase its market share in the cryptocurrency payments sector, as by offering a number of advantages over traditional payment methods, businesses and consumers may be more likely to use Coinbase to make cryptocurrency payments. Coinbase’s market share is currently estimated to be close to 7%, so in order to compete with Binance, which has more than 40% of the market, they must issue products that are attractive to the market.
Does the future lie in quantum means of payment?
In the long term we could see exchanges basing their protocols on quantum technology, as it has the potential to be much better than the one presented by Coinbase. However, we are still far from them, as such technology has not yet been implemented for commercial use.
Its use could primarily benefit financial institutions because the data is immutable, so the security of the data increases substantially. Quantum cryptography is more resistant to attacks by quantum computers than traditional forms of cryptography, which could help protect financial data from hackers.
In addition to Coinbase, other companies are also developing quantum payments technologies. For example, financial technology company Stripe is working on a payments protocol based on quantum blockchain technology. While quantum payments technology is still in its early stages of development, it has the potential to revolutionize the way payments are made.
Writter: Franco Rubeis