Kraken and Coinbase Exchanges to Join the Supporters of Hard Fork Ethereum

Last Modified:12 May 2020 11:53:23
Kraken and Coinbase Exchanges to Join the Supporters of Hard Fork Ethereum

Big cryptocurrency exchanges Kraken and Coinbase, located in the U.S., finally showed their support for the hard fork Ethereum named Constantinople.

Kraken is one of the most well-known online Bitcoin and other cryptocurrencies trades exchanges. Launched in 2011, it is located in San Francisco. This exchange belongs to a company named Payward Inc., and by receiving the amount about millions from investments, it is one of the largest exchanges in the world. Kraken works with numerous cryptocurrencies, and international traders can easily turn benefit from the services of this exchange.

Payward Inc. was founded in 2013 in San Francisco, the U.S. The net worth of this company is $1.5 million.

Coinbase is a cryptocurrency exchange located in San Francisco, California. This exchange trades cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, and Litecoin with fiat currencies from 32 countries. Fiat money is a currency without intrinsic value, and government regulations determine its value. It’s also called unbacked currency. These two exchanges in the field of cryptocurrency join Binance, Huobi, and OKEx exchanges following being committed and obliged to observe this event to be held this week by Ethereum block.

Bitcoin Cash, with the symbol of BCH, is a fork for Bitcoin Classic and was created in August 2017 to improve scalability. The volume of each block is increased in Bitcoin Cash, and it is possible to process more transactions. Ethereum is the second cryptocurrency in the cryptography industry market and is based on Blockchain technology which was introduced under the supervision of a 23-year-old Russian youth named Vitalik Buterin. The goal of creating Ethereum was to make processes intelligence and create a space to execute decentralized and automatic software.

Ethereum Classic is a fork Ethereum which is similar to Ethereum up to block 1920000. It has been attempted to solve the security flaws. Litecoin is a peer-to-peer cryptocurrency and an open source payment network based on Blockchain technology. Litecoin provides the opportunity to make relatively fast and cheap payments all over the world. In this cryptocurrency, like Bitcoin, network security is guaranteed through encryption and mining process by a proof-of-work algorithm.

Employees of Coinbase company wrote in this regard, “Coinbase intends to support hard fork Constantinople Ethereum fully. As soon as the improving of facilities to confirm the security of the network, we will temporarily stop sending and receiving Ethereum in all commercial areas.”

Fork or branch in cryptocurrencies is a type of software update. In fact, the fork has taken place when the protocol of a cryptocurrency or code is updated. It creates a different copy of cryptocurrency Blockchain, and both Blockchains are allowed to operate in different parts of the network simultaneously. It is composed of two types: soft fork, a branch of optional cryptocurrency which is compatible with it; hard fork, a branch of obligatory cryptocurrency which is not compatible with its previous version. Previous rules are nullified, and a new code is used in the hard fork.

Kraken also confirmed in a tweet that it will support Constantinople. Also, authorities added that they expect it not to be opposite to Ethereum and there will not be any fight with Ethereum chain the way they handled hard fork of Bitcoin Cash in November.

Kraken further added in its tweet, “Kraken will support it; though we expect the old chain to be nullified very soon, no new coin will be valid for Ethereum holders.”

ETH/USD has seen short-term support while running hard fork. In the cross-market coverage, ETH/USD pair saw the highest profit among the top 20 cryptocurrencies in the market, with an 8.7 percent growth in the past 24 hours.

Constantinople hard fork is considered a prominent stage in Ethereum network; because its developers intend to transfer it through a plan from proof-of-work (PoW) algorithm to proof-of-stake (PoS) algorithm. This hard fork is an important step toward becoming a whole network and includes all kinds of technical developments.

Proof-of-work is a mechanism to protect information based on the need to do a particular operation. When working with cryptocurrencies, specific information is demanded. The proof-of-work algorithm aims to make sure of the calculations that were done when creating the new block.

In the proof-of-stake algorithm, new blocks are created instead of being mined. Unlike the proof-of-work algorithm, proof-of-stake does not require much computational power, and by avoiding the creation of centralized mining pools, reduces the possibility of harmful attacks.