Earlier this week, Coinbase, the San Francisco-based crypto exchange platform, introduced a new open-source On-Chain Payments Protocol into its Coinbase Commerce product portfolio. Reveal in a company announcement, the new protocol aims to enhance the payment experience of customers and merchants, providing low fees, instant settlement, and broad asset support.

Over the years, Coinbase Commerce has maintained its status as a global champion in helping merchants anywhere in the world accept crypto payments in a decentralized fashion. However, the complexities of the payment processes and the volatility of cryptocurrencies have impeded smooth processes and efficiency. This updated payment protocol therefore aims to address these concerns and provide a more user-friendly and efficient payment experience to all users of the platform.

The On-Chain Payment Protocol aims to simplify payments

Coinbase’s new open-source On-Chain Payments Protocol aims to become a global standard in the business of simplified and unified on-chain payments. One striking attribute of this protocol is its open-source model. This will empower other payment processors and businesses to build upon it and improve it on an ongoing basis.

According to the announcement, the new update offers major benefits to merchants. With a simple setup and easy integration, they can enjoy low transaction fees, volatility-free payments, and instant settlements in hundreds of crypto assets. In fact, this facilitated on-chain transaction mechanism can be easily integrated with platforms like Primer, WooCommerce, and Jumpseller, making it easy for merchants and businesses to clear multi-channel payments in minutes.

The new protocol was built to support multiple wallets and currencies, allowing flexibility in the medium through which customers pay, like Polygon, Eutherem, and Base networks. This ensures that customers have a reliable and accurate payment experience.

The On-Chain Payment Protocol automatically converts assets

The payment protocol also automatically converts the customers’ chosen currency to USDC, an attribute designed to simplify the accounting and operations for merchants. Furthermore, Coinbase has integrated a real-time transaction validation process which provides instant payment confirmation, eliminating doubts, delays, or the need for manual data entry.

Coinbase’s recent breakthroughs have come with controversies, though

Launching a series of products and services to crypto users lately, Coinbase has been on a spree. Last week, the crypto exchange platform announced that it will add Solana (SOL) and Avalanche (AVAX) perpetual future contracts to its portfolio. Just before that, Coinbase also announced that it will launch Bitcoin and Ethereum futures contracts for US retail traders.

Despite these milestones, they have been at loggerheads with the US Securities and Exchange Commission (SEC) as the commission accused them of not meeting the requirements of being a security trading firm. However, Coinbase has refuted the SEC’s claims by stating that its activities do not fall under the commission’s legal capabilities.