Crypto: Coinbase Paves The Way For The Total Decentralization Of Its Platform

Coinbase, one of the largest centralized crypto exchanges, is taking a significant step towards decentralization with the introduction of a brand new innovation on the Base mainnet. Scheduled for October 30, this event marks a key milestone in the platform’s evolution towards greater transparency and security.

Proofs of default: Coinbase’s secret weapon

Proofs of default will allow anyone to monitor and contest unauthorized invalid withdrawals, thereby eliminating the need for a trusted third party. In collaboration with Optimism, this initiative aims to enhance the security and reliability of the crypto platform while paving the way for increased community participation. These proofs of default will provide two essential capabilities for decentralization:

• Unauthorized exit proposals

In a L2 without proofs of default, only a centralized proposer can create and submit exit roots. With proofs of default, anyone will be able to make claims on the current state of Base, thereby reducing reliance on a centralized actor.

• Unauthorized challenges

If a false or fraudulent claim is made, anyone will be able to contest it. This will allow for more robust and decentralized validation of the state of the crypto network.

Additionally, withdrawals on Base will now involve a proof and finalization process based on the proofs of default system. The DisputeGameFactory contract will replace the L2OutputOracle, providing exit root instructions, thus improving the security and reliability of the crypto platform.

What will happen for crypto users?

For users withdrawing funds from L2 to L1, withdrawals before the upgrade will have to wait for a 7-day challenge period before finalization. Furthermore, withdrawals made during or after the upgrade will be validated by the new system and will generally take 7 days to finalize, with additional delays possible in case of disputes.

Moreover, bridge operators on the Base mainnet will need to inform their crypto users about the activation of proofs of default, and update their transition logic to use the new L1 contracts. Upgrades to these contracts will be completed atomically, without requiring action from node operators.

A giant leap for the crypto exchange

Coinbase remains the ideal choice for users looking to invest in crypto. As a global leader, the platform offers unparalleled security and a user-friendly interface for all investors. With innovative initiatives like proofs of default, Coinbase is taking a giant leap towards decentralization and bringing more transparency to this vast crypto universe.

In summary, Coinbase continues to prove its commitment to decentralization and security, offering an even more reliable and innovative platform. The proofs of default scheduled for October 30 will further strengthen user trust in the crypto ecosystem.