Ethereum is a smart contract platform that enables developers to build tokens and decentralized applications (dapps). ETH is the native currency for the Ethereum platform and also works as the transaction fees to miners on the Ethereum network. Ethereum is the pioneer for blockchain based smart contracts.
According to Brad Garlinghouse, if the case were to arise Coinbase is an American company that operates a cryptocurrency exchange platform. I would choose to stop staking participation in a proof-of-stake (PoS) system to put your tokens in to serve as a validator to the blockchain and receive rewards. in the network a network refers to all nodes in the operation of a blockchain at any given moment in time. of Ethereum a decentralized open-source blockchain with smart contracts functionality. rather than having to block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. transactions because of government pressure.
- Coinbase I would prefer not to endorse Ethereum instead of blocking transactions
- Being a legally constituted company, Coinbase must abide by legal rulings
- What happened with Tornado Cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. opened up the debate on privacy and censorship censorship is the act of altering, suppressing, or prohibiting speech or writing that is considered detrimental to the general public.
- Coinbase will be listed as one of the main validators of the Ethereum after The Merge
Undoubtedly what happened with Tornado Cash has opened up a great debate around privacy and censorship, especially in light of the sanctions issued by US regulators and the repercussions this has had for both the project and its top management.
Another who recently spoke out about these issues was the CEO of Coinbase, Brian Armstrong, who said he is more on the side of privacy and rights than compliance with possible sanctions, even if it means leaving the exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. out of a very lucrative business opportunity.
Coinbase is pro-freedom, Armstrong stresses
Armstrong’s words came to place in a message through his account an account is essentially a whose purpose is to track the financial activities of a specific asset/ of Twitter, where he responded to the developer of Ethereum, Lefteris Karapetsas, who from Coinbase are more in favor of the users than of the governmental positions.
Concretamente, Karapetsas preguntó abiertamente a varios exchanges, incluyendo a Coinbase y a Squatting, on what they would do if the U.S. government demanded that they comply with the sanctions and block all transactions related to the addresses of Ethereum included in his blacklist, proposing these potions:
- Compliance and censorship at protocol level
- Shut down the staking service and preserve the integrity of the network.
If regulators ask you to censor at the #ethereum protocol the set of rules that define interactions on a network, usually involving consensus, transaction validation, and network participation on a blockchain. level with your validators will you:
A) Comply and censor at protocol level
B) Shut down the staking service and preserve network integrity https://t.co/UYVR2L6tB1
– Lefteris Karapetsas | Hiring for @rotkiapp (@LefterisJP) August 14, 2022
To this approach, Armstrong responded:
“It’s a hypothetical situation that, hopefully, we won’t actually face. But if we did, I think we’d go with option a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price. B. We have to focus on the big picture. There may be a better option (C) or a legal challenge as well that could help achieve a better outcome.”
It’s a hypothetical we hopefully won’t actually face. But if we did we’d go with B i think. Got to focus on the bigger picture. There may be some better option (C) or a legal challenge as well that could help reach a better outcome.
— Brian Armstrong – barmstrong.eth (@brian_armstrong) August 17, 2022
La pregunta vino a lugar dado que Coinbase and other centralized a centralized organizational structure is one in which a single node or a small number of them are in control of an entire network. exchanges are among the most important validators in the network. Ethereum, which is about to roll out a new update calledThe Merge, with which your consensus consensus is achieved when all participants of the network agree on the order and content of the blocks in the blockchain. algorithm a process or set of rules to be followed in problem-solving or calculation operations, usually by a computer. will be switched to work via Proof-of-Stake poS is a type of consensus algorithm that rewards validators according to the amount of crypto they have staked. (PoS) to abandon the traditional mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. with which it has been operating since its beginnings.
Censorship and the case of Tornado Cash
The comments came in the wake of what happened with Tornado Cash, a service for mixing transactions with cryptocurrencies that was sanctioned by US regulators, which involved the arrest of its main developer, Alexey Pertsev in the Netherlands and the blocking of crypto addresses linked to the platform.
In addition to Pertsev’s arrest, the measure also led to other actions and blockades by various entities. Among these is the case of Circle, issuer of the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. USD Coin, which also blacklisted the sanctioned addresses and thus froze funds. USDC there housed.
After Pertsev’s arrest, Armstrong also commented on his account of Twitter to express his support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. for the victim, stating that no developer should be arrested for releasing open source software, even if that product was used by bad actors.
Coinbase subject to the laws
As much as Armstrong would like to take the side of the users and the values associated with freedom, the fact is that Coinbase is a company that must comply with laws in the U.S. and other legislations, so they should abide by blockades and sanctions if governments require them to do so.
Something similar happened at the time when war broke out between Russia and Ukraine. Both Coinbase like many other exchanges were forced to suspend services to persons under international sanctions.
While Armstrong noted that this is a hypothetical situation, it remains to be seen if the approach taken by the U.S. makes its weight felt on the actions of the exchange, should the case arise that Coinbase had to abide by stricter measures dictated by the government.
- Alleged US-sanctioned Tornado Cash developer arrested in the Netherlands
- MakerDAO considers disassociating from USDC following Circle’s action against Tornado Cash
- Despite sanctions, Tornado Cash activity increased amid campaign that sent crypto to celebrities
Article by Angel Di Matteo / DiarioBitcoin
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