Here is an article explaining why Coinbase requires block height:
The Importance of Block Height on Coinbase: Understanding the Bitcoin Source
When it comes to using a cryptocurrency exchange like Coinbase, one of the most important factors to consider is the block height. In the world of Bitcoin, block height refers to the number of blocks that have been added to the blockchain since its creation. This may seem like a trivial detail, but it actually plays a crucial role in ensuring the security and integrity of the Bitcoin network.
Why Height Matters
According to the Bitcoin source code provided by Coinbase (see comment [1]), the block height is required for several reasons:
- Versioning: When new blocks are created in the blockchain, they must be assigned a specific version number. This is done using the “block.version” property, which specifies the current block height in hexadecimal format.
- Timestamps: Each block contains a timestamp indicating the time it was added to the blockchain. By including the block height, Coinbase ensures that timestamps can be accurately matched to specific blocks.
- Security
: Block heights are used to prevent tampering and manipulation of the blockchain. If an attacker were to alter or manipulate a block without understanding the timestamp associated with it, they could create a false version of the block.
Why Coinbase Requires Heights
Coinbase has adopted this requirement for several reasons:
- Blockchain Integrity: By ensuring that each block is assigned a unique version number and timestamp, Coinbase guarantees the integrity of the blockchain.
- Security: The use of block heights prevents any malicious activity that could be carried out by manipulating or altering blocks without understanding the timestamps associated with them.
- Regulatory Compliance: In some jurisdictions, Coinbase may be required to comply with specific regulations regarding the handling and storage of cryptocurrencies.
Conclusion
In summary, block height is a critical aspect of cryptocurrency transactions on Coinbase. By incorporating block heights into the creation process, Coinbase ensures the security and integrity of the blockchain, preventing tampering or manipulation that could compromise user data. Understanding this requirement can help users understand the importance of a safe and secure exchange.
References:
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- Coinbase documentation: <