CoinBase is a popular cryptocurrency exchange platform founded in 2012 by Brian Armstrong and Fred Ehrsam. It allows users to buy, sell, and store various cryptocurrencies like Bitcoin, Ethereum, and more. The name CoinBase originated from the combination of the words "coin" and "base." It has become one of the largest and most trusted exchanges in the crypto space, offering a secure and user-friendly interface for trading digital assets.
Coinbase is a popular cryptocurrency exchange platform that offers several benefits compared to its direct competitors. Here are some key advantages of using Coinbase:
1. User-Friendly Interface: Coinbase provides a simple and intuitive interface, making it easy for beginners to navigate and trade cryptocurrencies. Its user-friendly design and straightforward process for buying, selling, and storing digital assets are often praised by users.
2. Wide Range of Supported Assets: Coinbase supports a diverse range of cryptocurrencies, including well-known coins like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), as well as newer and emerging tokens. This extensive selection allows users to access a wide range of investment opportunities.
3. Strong Security Measures: Coinbase is known for its robust security measures, such as offline cold storage for funds, two-factor authentication (2FA), and insurance coverage for digital assets held on the platform. These measures help protect user funds and provide peace of mind.
4. Regulatory Compliance: Coinbase complies with regulatory standards in the jurisdictions it operates in, which gives users confidence in the platform's legitimacy. It has obtained licenses and operates under strict regulations, ensuring a trustworthy environment for trading and storing cryptocurrencies.
5. Liquidity: Coinbase has high liquidity, meaning users can easily buy and sell cryptocurrencies at competitive prices. This liquidity is crucial for active traders and investors who require quick transaction execution.
While Coinbase has its advantages, it is important to note that there are other competing exchanges in the market. Some notable competitors include Binance, Kraken, and Gemini. Each of these exchanges has its own unique features and benefits, so it's recommended to research and compare them based on one's specific requirements and preferences.
Coinbase is a popular cryptocurrency exchange platform that enables users to buy, sell, and store various cryptocurrencies. It operates on the Ethereum blockchain, which is a decentralized, open-source blockchain platform.
The underlying technology behind Coinbase revolves around the use of blockchain and smart contracts. Blockchain technology ensures the secure and transparent storage of transaction records, while smart contracts facilitate the execution of self-executing agreements without the need for intermediaries.
When users sign up for an account on Coinbase, they are provided with a digital wallet that allows them to store their cryptocurrencies. Users can then deposit funds into their Coinbase account using traditional payment methods, such as bank transfers or debit/credit card payments.
Coinbase connects to the Ethereum blockchain to record transactions and maintain the account balances of its users. When a user places a buy or sell order, Coinbase matches it with other users' orders using an order book system. Once the transaction is executed, the ownership of the cryptocurrencies is transferred to the respective parties.
Coinbase also offers a feature called Coinbase Pro, which allows users to trade cryptocurrencies with more advanced options and lower fees. Additionally, Coinbase provides a secure storage system for users' cryptocurrencies through its Coinbase Custody service.
It's important to note that Coinbase is just one example of a cryptocurrency exchange, and there are numerous other platforms that operate on different blockchains and may have variations in terms of functionality and features.
DIA utilizes a comprehensive approach to fetch trade data from various exchanges, including both decentralized finance (DeFi) and non-fungible token (NFT) platforms. The process varies depending on the type of exchange being referred to.
For centralized exchanges like Coinbase, Kraken, and Binance, DIA employs scrapers that directly collect trades from the exchange databases using Rest APIs or WebSocket APIs. The frequency of data collection varies from 1 to 7 seconds, depending on the particular exchange. By retrieving trading data as close to the data source as possible, DIA ensures high precision and real-time information.
In contrast, when it comes to decentralized exchanges, DIA retrieves data from multiple blockchains by subscribing to swap events in liquidity pools. This approach allows DIA to directly obtain trading data from the blockchain itself, enhancing data accuracy. Popular decentralized exchange sources that DIA leverages include Uniswap, curve.finance, and PancakeSwap.
NFT marketplaces are another key component of DIA's data management strategy. DIA captures live trading data from integrated marketplaces' smart contracts, covering all NFT transactions happening in real-time. The retrieval period for NFT data ranges from 20 seconds to 1 minute, ensuring comprehensive coverage of the broader NFT market. Notable NFT integrated exchange sources that DIA leverages include Blur, X2Y2, OpenSea, and TofuNFT.
By combining these approaches, DIA ensures the availability of highly accurate and customizable price feeds for its users.
DIA uses a multi-step process to compute trade data from CoinBase and build price feed oracles. The specific process differs depending on whether we are referring to a DeFi or NFT exchange.
For DeFi exchanges, the first step is data cleaning and outlier detection. This involves removing trades with prices that deviate significantly from the current market price to avoid irregularities and manipulation. DIA applies an Interquartile Range (IR) filter to exclude data points and sets that fall outside an acceptable range relative to the interquartile range.
Once the data is cleaned, DIA applies price determination methodologies to calculate the final price. One example is the Volume Weighted Average Price (VWAP), which takes into account the different volumes of trades. All trades from the queried time range are weighted by their volume, and the weighted average price is calculated.
For NFT exchanges, the process is different. DIA determines the floor price of an NFT collection by processing on-chain trade data. Firstly, the data goes through cleansing filters to exclude market outliers and manipulation techniques. Then, a pricing methodology is applied to determine the final price point.
The simplest methodology is the Floor Price, which provides the lowest sale price of an NFT collection recorded on the blockchain during a given time window. However, this method can be manipulated by malicious actors. To address this, DIA offers advanced methodologies such as the Moving Average of Floor Price, which returns the moving average of a collection's floor price.
Overall, DIA applies data cleaning, outlier detection, and specific price determination methodologies to compute trade data from CoinBase and build accurate price feed oracles for both DeFi and NFT exchanges.
Instead of distributing pre-calculated data feeds, DIA covers the whole data journey from individual trade collection, and computation to the last mile of the feed delivery.