U.S. cryptocurrency exchange Coinbase has rolled out a revolutionary protocol to enhance on-chain payments. The newly introduced Onchain Payment Protocol, an open-source initiative, serves as an upgrade to its Commerce product.
According to a recent blog post, the Onchain Payment Protocol is designed to simplify and standardize on-chain payments for various currencies accessible on Base, Polygon, and other Ethereum Virtual Machine networks. Notably, this update promises volatility-free payments and minimal transaction fees, addressing common challenges faced by both merchants and customers.
The exchange aims to tackle prevalent transaction issues with the new protocol by unifying on-chain payments. This ensures clarity, reliability, and a consistent experience for users, regardless of their chosen platform or wallet.
The Vision for On-Chain Transactions
The exchange expressed a bold vision, stating, “At Coinbase, we believe that on-chain is the new online.” Drawing parallels with the internet’s transformative impact, the exchange envisions breaking down financial barriers, democratizing access to services, and facilitating global commerce through crypto.
Given the open-source nature of the protocol, it allows other payment processors and businesses to leverage it, creating accessible gateways for on-chain payments. This democratization of technology enables individuals worldwide, with just an internet connection, to send and receive transfers globally.
Coinbase Commerce Addresses Merchant and Consumer Concerns
Highlighting the challenges faced by merchants and consumers in the crypto space, Coinbase emphasized that its updated Commerce product tackles issues such as crypto volatility and complex payment experiences. This streamlined approach enables anyone with internet access to seamlessly accept payments globally.
The Coinbase Onchain Payment Protocol introduces several benefits for merchants, including instant payment settlements, support for multiple networks, and easy integrations. On the consumer side, pre-configured payments, retail payment support, and instant payment confirmation enhance the overall transaction experience.
Despite challenging market conditions, the exchange continues to innovate and release updates. The recent launch of Base, a substantial scaling layer-2 network on Ethereum, has positioned itself as a formidable player in the rapidly growing layer-2 blockchain space, competing with the likes of Arbitrum and Optimism.