In less than a month, the Base network has become a prominent Ethereum Layer 2 blockchain, achieving a million addresses within just eleven days – quicker than any other Layer 2 network.
What’s behind Base’s rapid growth? Coinbase’s strong financial backing and reputation have certainly played a role. However, a unique aspect that has drawn attention is Base’s decision not to have its own native token.
Rise in Adoption of Layer 2 Networks and Base’s Success
Comparing the adoption rates of various Layer 2 networks, CoinGecko found that the time it takes to reach a million users has been decreasing.
For instance, Base reached this milestone in only 11 days. In contrast, Optimism took 191 days to reach the same point after its launch in January 2021. Arbitrum, which went live in September of the same year, took even longer at 303 days.
Moving to 2023, the zKSync Era mainnet, launched in March, achieved a million addresses in 71 days.
Base’s rapid user influx has boosted its network activity, outperforming more established competitors. Shortly after its mainnet launch, Base ranked third in popularity for NFT transfers among Layer 2 networks. Last week, its daily transaction volume briefly surpassed Optimism and Arbitrum.
Benefits of the Tokenless Approach
According to the CoinGecko report, a key difference between Layer 2 launches in 2021 and 2023 is that the former incentivized adoption by offering early access to network tokens. In contrast, the newer networks have gained a significant user base without introducing their own native tokens.
The absence of native tokens simplifies the user experience. Users don’t need to exchange Ethereum for specific Layer 2 tokens like ARB, OP, or MATIC. This tokenless model creates a smoother process, especially for those already familiar with Ethereum.
Creating a Familiar Experience
The resemblance between the new Layer 2 networks and Ethereum goes beyond the lack of native tokens. Both ecosystems were designed to resemble Ethereum’s primary Layer 1 network closely. Scaling solutions have become better at mirroring the features of their base blockchains over time.
This technical advancement benefits both regular users and developers. Smart contracts on zKSync and Base are written in Ethereum’s native programming languages, Vyper and Solidity. In contrast, Solana uses Rust as its native language, while Starknet employs the less common programming language Cairo.
Although tools exist to translate between languages within the Ethereum ecosystem, the trend has been toward greater integration with the primary blockchain.
Shortening the translation process between a Layer 2 contract and its execution in the Ethereum Virtual Machine (EVM) bytecode offers two advantages. Firstly, Ethereum developers can more easily adapt to new Layer 2 environments. Secondly, reducing components minimizes the risk of bugs and simplifies Layer 2 applications.
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