Depositing funds to cryptocurrency exchanges can be cumbersome. Individual cryptocurrency networks require a specific number of transaction confirmations to occur.
Coinbase has now decided to change its required confirmation requirements for multiple currencies.
Litecoin Users get Shafted by Coinbase
Interestingly enough, only one currency will require additional confirmation moving forward.
In the blog post, Coinbase lowers confirmation requirements for Bitcoin, Ethereum Classic, and ZCash.
For Bitcoin, they now require 3 confirmations, compared to 6. Ethereum Classic and ZCash also received a noteworthy reduction.
One exception is Litecoin. The “silver to Bitcoin’s gold” will now require 12 confirmations from the network. This will undoubtedly create some backlash among users.
According to Coinbase, these changes are made to be more in line with the current state of the cryptocurrency industry. Removing conservative requirements from the equation makes sense at this time.
The increase in Litecoin’s confirmations is based solely on the potential risk of a 51% attack taking place.
A bit of an odd sentiment, as there doesn’t appear to be any imminent threat whatsoever.
It is true the Litecoin network hashrate has decreased in recent months. As such, it becomes – theoretically – easier to perform such a nefarious attack against the network.
For companies such as Coinbase, a 51% attack can easily lead to double spending of funds. That would cost the company a lot of money if pulled off successfully.
The other three networks do not suffer from any noteworthy hashrate changes. In fact, Bitcoin’s hashrate remains very healthy and even grows from time to time.