Coinbase Announces Launch of Ethereum Layer-2 Network

Zach Anderson  Feb 25, 2023 17:15  UTC 09:15

2 Min Read

The cryptocurrency exchange Coinbase made the announcement about the launch of Base, an Ethereum layer-2 network, on February 23. The business has said that the newly launched network would provide a low-cost, secure, and user-friendly environment for the development of decentralized applications (DApps) on the blockchain.

According to Coinbase, Base was developed with the intention of serving as a gateway for people into the cryptocurrency economy. It does this by providing users with access to other L1 ecosystems, such as Solana, and by ensuring that it is compatible with other chains. Additionally, it will provide consumers access to Coinbase's products, users, and tools, in addition to providing simple on-ramps for fiat currency and strong acquisition tools. The corporation has indicated that it does not intend to provide a fresh network token at this time.

Optimism's "OP Stack" will be the foundation upon which Base will be constructed. It will begin with a significant degree of centralization; however, Coinbase has disclosed a comprehensive blueprint outlining how the network will gradually become decentralized over time.

In the statement that Coinbase made, the company said that Base will be "completely open source and readily accessible." The business announced that it would be joining the core development team for OP Stack in order to "ensure that it is a public benefit that is open to everyone."

The release states that Coinbase will continue to connect itself as an exchange with other networks, and that Base itself will function as "a bridge, not an island." Coinbase wants Base to be a network that is simple for its consumers to use so that they can get used to using cryptocurrency. However, the company will urge users to "start on Base, but travel elsewhere."

Coinbase stated in its decentralization plan that it is collaborating with Op Labs and the Optimism Collective to decentralize the Optimism ecosystem. This will be accomplished by building a "Superchain" of connecting networks based on the OP Stack. Coinbase's plan calls for the creation of this "Superchain." Citing Vitalik Buterin's paper on the decentralization of rollups, the business has come to the conclusion that the present version of Optimism is what is known as a "Stage 0 rollup." Coinbase has said that it intends to have developed Base to "Stage 1" by the end of the year 2023.

Read More