The Base of Coinbase Base: The new L2 on the Block

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The Base of Coinbase Base: The new L2 on the Block

The world of decentralized finance is constantly evolving, and new technologies are emerging to make it easier for developers to build decentralized applications (dapps) on the blockchain. Coinbase, one of the largest cryptocurrency exchanges in the world, has recently announced the launch of Base, an Ethereum Layer 2 (L2) network that offers a secure, low-cost, and developer-friendly way to build dapps on the blockchain. In this article, we’ll take a closer look at Base, its features, and why Coinbase is building it.

Coinbase’s Ethereum Layer 2 Network

Coinbase’s Base is a Layer 2 (L2) network built on top of Ethereum that offers a low-cost, secure, and developer-friendly platform to build decentralized applications. The goal of Base is to onboard one billion users into the cryptoworld by making it easy for developers to build dapps on the blockchain. Base is being incubated inside Coinbase, leveraging the company’s experience in building crypto products over the last decade.

Optimism for Base? 

Using Optimism’s OP Stack to power Base could potentially have a positive impact on the price of optimism. This is because Base is considered to be one of the most secure and scalable EVM L2s available, thanks to the use of the OP Stack. Furthermore, the OP Stack is an open-source public good that could serve as the basis for a “superchain” of L2s.

Why Build Base?

Coinbase’s mission has always been to create an open financial system that increases economic freedom globally. The company has progressed through the first three stages of its plan: the protocols (Bitcoin, Ethereum), building the exchange (Coinbase Exchange), and creating a mass-market interface for dapps (Coinbase & Coinbase Wallet). The final stage is the apps of the open financial system. To create an environment where thousands of useful dapps can emerge and bring 1 billion users into the cryptoeconomy, 

How Will Base Help Developers?

Base provides a clear and paved road for developers to build dapps onchain. The primary developer platform for dapps on Base is the Ethereum Virtual Machine (EVM), which is widely used and has significant support across the Coinbase product suite. Ethereum Layer 1 (L1) is used for high-value dapps that require the most security, while Ethereum Layer 2 (L2) is used for dapps that require scale. By deploying on L2, developers can build applications that aim to reach billions of users and benefit from cheaper transactions.

Base

Conclusion

Base is an exciting new development in the world of decentralized finance. By providing a low-cost, secure, and developer-friendly way to build dapps on the blockchain, Base could help onboard a massive amount (110 million) who will now be onboarded to the DeFi. With Coinbase’s experience in building crypto products, and the use of Ethereum Layer 2 technology, Base is poised to become a significant player in the decentralized finance space.

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