Key Takeaways:
- Coinbase has launched its layer-2 network for developing decentralised applications.
- Ethereum provides Base’s security, but the platform also wants to work with other blockchain networks.
- Coinbase does not intend to create a new network token for Base and will instead use ETH as the native gas token.
Base, an Ethereum-focused layer-2 (L2) blockchain, has been launched by Coinbase, the second-largest cryptocurrency exchange by trading volume, according to Jesse Pollak, director of protocols at Coinbase.
Base will be nurtured inside Coinbase, but it intends to become fully autonomous in the future. It will function as the second main contributor to Optimism’s OP stack and be powered by it.
By providing access to other L1 networks like Solana and enabling interoperability with other chains, Base is intended to serve as a user’s gateway into the cryptocurrency market, according to Coinbase.
Access to Coinbase’s tools, users, and products will also be made available, along with quick fiat on-ramps and strong acquisition tools. The business declared that it has no intentions to release a fresh network token.
Making onchain the next online and bringing in 1 billion+ people to the crypto economy are the objectives of Base. In order to achieve this, Base will house Coinbase’s onchain goods and act as an open platform where anyone can create.
The network would also be open-source, autonomous, and based on the MIT-licensed OP Stack.
The news has raised the market price of Optimism (OP). At the time of publication, Optimism was valued at $2.96 on CoinMarketCap and had increased by more than 4% in the previous hour. Additionally, OP had a market value of over $696 million and had witnessed an uptrend of over 20% over the previous 24 hours.
Recognizing that there are no intentions to create a token, Base will make use of ether as its native asset, which means that users will pay for gas in ETH. Pollak claims that there are plans to ultimately integrate USDC into the network.
By 2024, the network will be completely decentralised, according to a plan presented by Coinbase, which also stated that Base will be constructed entirely in open source.
Since 2023 has been plagued with controversy for the exchange, the announcement of the new layer-2 (L2) blockchain with Ethereum as its primary emphasis is expected to be welcomed by the community. Coinbase has been fined $3.6 million in the last two months in the Netherlands. To make matters worse, an ex-Coinbase manager also pleaded guilty in the first-ever crypto insider trading case.
