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 step in the evolution of the platform towards greater transparency and security.
Proofs of Default: Coinbase’s Secret Weapon
Defect Proofs will allow anyone to monitor and challenge invalid withdrawals without permission, eliminating the need for a trusted third party. In collaboration with Optimism, this initiative aims to strengthen the security and reliability of the crypto platform while paving the way for increased community participation. These proofs of default will bring two essential capabilities to decentralization:
- Proposals for exit without authorization
In an L2 without defect proofs, only a centralized proposer can create and submit output roots. With fault proofs, anyone will be able to make claims about the current state of Base, reducing dependence on a centralized actor.
- Challenges without authorization
If an erroneous or fraudulent claim is made, anyone can dispute it. This will enable 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 Proof of Default system. The DisputeGameFactory contract will replace the L2OutputOracle, to offer root output instructions, thus improving the security and reliability of the crypto platform.
What will happen to crypto users?
For users withdrawing funds from L2 to L1, withdrawals before upgrading will need to wait for a 7-day challenge period before finalization. Additionally, withdrawals made during or after the upgrade will be proven by the new system and will typically take 7 days to finalize, with additional delays possible in the event of a dispute.
Additionally, bridge operators on the Base mainnet will need to notify their crypto users of 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 step for the crypto exchange
Coinbase remains a reliable exchange 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 proof of defectCoinbase is taking a giant step towards decentralization and bringing more transparency to this vast crypto universe.
In short, Coinbase continues to demonstrate its commitment to decentralization and security, offering an even more reliable and innovative platform. With proof of defects scheduled for October 30 and $10 gas fees offered each month, Coinbase further strengthens user confidence and maintains its position as a leader in the crypto ecosystem.
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