How Coinbase Is Using an Ethereum Upgrade to Help Merchants Take USDC

Coinbase Commerce is putting ethereums most recent upgrade, Constantinople, to use for thousands of retailers and merchants around the world.

Launched early last year, Coinbase Commerce is an app for online vendors wanting to accept payments in crypto and integrate these purchases into existing business cash flows.

As reported by CoinDesk in May, over $50 million in transactions have been processed through Coinbase Commerce by 2,000 merchant clients, including e-commerce giant Shopify.

Recently, the application added support for ethereum-based stablecoin USDC. On Wednesday, Coinbase Commerce software engineer Bojan Joveski released a blog post discussing the new ethereum feature that makes USDC payments possible.

CREATE2 is very recent addition to the ethereum ecosystem and its very important because it enables workflows that were impossible or at least very impractical before, said Joveski. Now, developers can simulate interactions with the blockchain without deploying their [smart] contracts on there.

Joveski added:

This is very neat because it enables huge savings for cost.

CREATE2 was activated on the ethereum blockchain in February as part of a larger systemwide upgrade known as Constantinople.

According to Joveski, the implications of his report suggest a cost-effective and secure way for Coinbase Commerce to support virtually any ethereum-based ERC-20 token, not just USDC. Whats more, its not only payments on the ethereum blockchain that Joveski suspects can benefit from the CREATE2 feature.

The same structure of how we architected these smart contracts can be used for a number of uses cases that go beyond payments, said Joveski. Any interaction where some service provider needs to eagerly offer some items for sale or tokens related to gaming they can re-apply the same principles weve used here.

How CREATE2 works

Originally proposed by the founder of ethereum, Vitalik Buterin, Ethereum Improvement Proposal 1014, or CREATE2, adds a new operation code enabling developers to deploy a smart contract on ethereum in the future tense.

Rather than committing every interaction to a smart contract on the blockchain, CREATE2 allows for what Hubert Ritzdorf, CTO of smart-contract audit firm Chain Security, calls deterministic deployment.

When you deploy a new smart contract on ethereum, what happens is that [the network] computes the address to where the contract will be deployed. You know this ahead of time but it depends on a lot of variables, Ritzdorf told CoinDesk in February. CREATE2 makes it easier to say, We will de ...

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Tags: Ethereum, Bojan Joveski, Blockchain, United States district court, Coinbase, Smart contract, Merchant, CoinDesk, Upgrade, Constantinople