Coinbase halting eth erc20 token transactions on merge day

Download 1M+ code from https://codegive.com/f739e49 coinbase, the merge, and erc-20 token transactions: a detailed guide the ethereum merge was a pivotal event in the history of cryptocurrency, transitioning the ethereum network from a proof-of-work (pow) consensus mechanism to a proof-of-stake (pos) system. this transition had significant implications for exchanges like coinbase, particularly in how they handled erc-20 token transactions during the upgrade. this tutorial aims to provide a detailed understanding of why coinbase (and other exchanges) might have temporarily halted erc-20 token transactions during the merge, the potential risks involved, and how developers could have prepared their applications for this event. we'll also touch upon the scenario of a potential ethpow fork and how exchanges might handle that. while this is a historical analysis, the concepts and strategies remain relevant for future blockchain upgrades and forks. **why halt erc-20 token transactions during the merge?** the primary reason for halting erc-20 token transactions stems from the inherent uncertainty and potential risks associated with a major network upgrade like the merge. here's a breakdown of the key factors: 1. **chain splitting and forking:** * **the problem:** before the merge, there was a significant possibility of the ethereum network splitting into two chains: the new proof-of-stake (pos) ethereum (eth) and a potential proof-of-work (pow) ethereum fork (ethpow). * **transaction replay attacks:** if a fork occurred, a transaction broadcasted on one chain (e.g., eth) could be replayed on the other chain (e.g., ethpow), potentially leading to unintended consequences. for example, if you sent 10 usdc on the pos chain to someone, a malicious actor could replay that same transaction on the pow chain, potentially sending 10 usdc from your account on the pow chain as well. this is especially dangerous for erc-20 tokens because their state is determined by the blockchain's history. * **risk mitigation:** paus ... #Coinbase #EthereumMerge #CryptoNews Coinbase halting ETH ERC20 token transactions merge day Ethereum cryptocurrency trading blockchain network upgrade digital assets exchange DeFi