Coinbase Commerce, the payment platform for merchants, has recently decided to discontinue support for native Bitcoin and other UTXO coins.
This move was announced by Lauren Dowling, the company’s head of product, who explained that challenges in implementing updates to its EVM payment protocol for Bitcoin prompted this difficult decision.
The latest Commerce feature ensures that payment details are recorded on the blockchain and can handle various types of assets, including both native tokens and ERC-20s. It automatically converts payments to USDC at a fixed rate for merchants.
Due to the complexities of achieving the same functionality on the Bitcoin blockchain without smart contracts and stablecoins, native Bitcoin and other UTXO support have been removed.
Brian Armstrong stated, “Zooming out – we think paying for stuff online with crypto won’t really go mainstream until we get off layer 1, and reduce transaction fees and confirmation times, so we’re trying to accelerate the move toward that world.”
Bitcoin employs the UTXO (Unspent Transaction Output) model to monitor transactions, prioritizing transparency and security. This differs from Ethereum’s account model, which resembles traditional bank accounts and offers greater flexibility. The UTXO model is also utilized by cryptocurrencies derived from Bitcoin, such as Dogecoin.
The move to eliminate native Bitcoin support has stirred up a backlash among the online community, with certain users highlighting its implications for Bitcoin’s wider acceptance.
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