Base blockchain is the Layer 2 scaling solution of Coinbase built on Optimism’s OP Stack for empowering the next generation of decentralized apps (Dapps).
What is Coinbase’s Base Blockchain?
On the morning of February 23, 2023, Coinbase’s Twitter page hinted at a mysterious tweet that aroused the curiosity of the community. People wondered whether it was a collaboration with Arbitrum or if Coinbase was preparing for a new event.
The answer came later that night when Coinbase officially launched Base, an open-source Layer 2 scaling solution for Ethereum!
Base is a new Layer 2 solution introduced by Coinbase. Coinbase has officially entered the Layer 2 space, and “Base” is the chosen name for this new platform. Specifically, it is built on the OP Stack technology provided by Optimism, with prominent features such as high security, low costs, developer-friendly, and most importantly, easy integration and application across various dApps. Base serves as a “home” for Coinbase’s on-chain products while also acting as an open ecosystem for collaboration with multiple parties in its development.
After the announcement of this new product, there was no significant change in the stock price of Coinbase (COIN) shares. However, for Optimism (OP), the price increased from $2.8 to $3 per OP.
Notable Features of Base Blockchain
Here are some prominent features of Base Blockchain:
- Similar to other Layer 2 solutions, Base will be secured by Ethereum along with additional security measures from Coinbase.
- Backed by Coinbase: The biggest advantage of Base is its association with Coinbase, which allows it to access over 110 million users and be compatible with CeDeFi (Centralized Decentralized Finance) products.
- Convenience and Low Costs: Base operates similarly to other Optimistic Layer 2 solutions and is fully compatible with the Ethereum Virtual Machine (EVM). This makes it easy for developers to build products, attract users, and leverage the robust infrastructure of Base.
- Robust Features, Low Fees: Base offers comprehensive EVM-compatible features with lower fees, committing to foster a developer-friendly platform. It facilitates gasless transactions for dApps through developer-friendly APIs that abstract away accounts and allows the safe building of cross-chain applications with user-friendly bridges.
- Open-Source: Base is oriented towards decentralization, being open, and permissionless for anyone with a vision to create a highly scalable Superchain. It follows a modular and standards-based approach provided by Optimism. Base also collaborates with Optimism as a Core Developer on the OP Stack, continuously working towards creating a strong Layer 2 community for other developers.
Overall, Base aims to enhance scalability and usability on the Ethereum blockchain, offering various benefits to developers and users alike.
Roadmap and Updates of Base Blockchain
Currently, Coinbase has not publicly disclosed the roadmap for Base. Layer 2 Daily will update the roadmap for you when there is information from Coinbase. As of now, Base is in the development phase, and they are hopeful to launch the Testnet smoothly.
For projects interested in building on the Base ecosystem, they can reach out to Coinbase (see more here). If the project meets the necessary criteria, they may receive funding from the Base Ecosystem Fund.
Overview of the Base Ecosystem
Currently, to attract users in the DeFi space, dApps need to excel in UI/UX, provide user-friendly interactions, low costs, and high security. Base aims to create a favorable environment to encourage DeFi organizations to concentrate their resources on building higher-quality dApps.
Base’s vision is to become an open and extensive ecosystem, more precisely, a superchain, where projects, users, and Coinbase’s assets will serve as a launching pad for numerous potential products.
See More: Overview of Coinbase Base Ecosystem
Being one of the most powerful forces in the crypto market, Coinbase has partnered with various projects to expand the Base ecosystem. Some notable projects include:
- 0x API: A platform enabling developers to integrate cryptocurrency trading functionalities into their applications.
- Aave: A decentralized financial protocol that allows users to lend and borrow cryptocurrencies.
- Chainlink: A decentralized oracle network that enables the integration of cryptocurrency data into decentralized applications.
- Dune Analytics: A blockchain analytics tool that allows users to access on-chain data for analysis and visualization.
- Nansen: A blockchain analytics and user identification platform to help users understand transaction behavior in the crypto market.
- Etherscan: A blockchain explorer tool that allows users to view transactions, addresses, and block information on the Ethereum network.
- Infura: A platform providing services that allow developers to connect and interact with blockchains on Ethereum and IPFS.
- MagicEden: An NFT (Non-Fungible Token) marketplace that allows users to buy, sell, and manage NFTs.
Additionally, there are many other significant projects such as The Graph, Sushiswap, Rainbow Wallet, Gelato, Pyth Network, and more. In the future, it would not be surprising if Base attracts more top-tier DeFi projects such as Uniswap, Opensea, Curve, etc. This will be a critical factor in attracting significant capital from the market.
Why did Coinbase build Layer 2 on the OP Stack?
OP Stack is an open-source plan for all blockchains, notably focusing on scalability and high interactivity. Building blockchains becomes more accessible when platforms adopt OP Stack.
Optimism envisions becoming a superchain, a Layer 2 solution capable of high interaction, and this compatibility is the main reason for this integration. The roadmap between OP Stack and the Superchain Base is outlined as follows:
Base and Optimism Mainnet will be deployed on OP Stack, implying the delegation of features within the ecosystem. Building robust and secure decentralized systems requires significant time and effort, and Base acknowledges the need for time to deploy them properly. Resources from Base and OP Labs will be combined for this development. Moreover, Base encourages the participation of like-minded individuals who can contribute to this plan. Clear delineation of collaboration rights is essential, and Coinbase, Base, OP Stack (or Optimism) will work together to govern OP Stack and the Superchain. Advantages and disadvantages of building on OP Stack:
- Advantages: Leveraging existing Optimism technology for rapid entry into the Layer 2 market without having to build from scratch.
- Disadvantages: Dependency on some aspects of Optimism’s technology.
Investment opportunity with Base
Although Base has not launched a token, it does not mean that investors or users in the Crypto space will not have the opportunity to participate in the Base ecosystem. This situation is similar to what happened with projects like Arbitrum or Optimism before they introduced their tokens.
For users deeply involved in DeFi, they can still profit in various ways within the Base ecosystem. They can participate in activities such as hunting for retroactive tokens from the project, investing in projects within the ecosystem, and providing liquidity to earn rewards.
By engaging in these activities, users can still benefit from their involvement with Base Blockchain, even without the presence of a native token at the moment.
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