Coinbase launched own Layer-2 Blockchain 'Base'

DecryptFebruary 23, 2023

Coinbase, one of the world's leading cryptocurrency exchanges, has recently launched a new product called Base. This layer-2 blockchain solution aims to provide a more efficient and cost-effective on-ramp to the Ethereum network.  Base is designed to enable faster and cheaper transactions while still providing the security and decentralization that are fundamental to the blockchain ecosystem.

The launch of Base comes at a time when the demand for Ethereum-based decentralized applications (dApps) is increasing, but the network is struggling with high fees and slow transaction times. Ethereum's Layer-2 scaling solutions are seen as a way to address these issues and provide a more seamless user experience. Coinbase's Base is one such solution, offering a user-friendly interface and lower fees compared to the main Ethereum network.

According to Coinbase's official blog post, Base is built on top of an  Optimistic Rollup. This technology enables Base to process more transactions per second than the Ethereum network itself, allowing for faster and cheaper transactions. Base users will be able to interact with Ethereum-based dApps, such as DeFi protocols and NFT marketplaces, using a simple and intuitive interface.

Coinbase's launch of Base has been met with excitement in the cryptocurrency community. Many see this as a significant step forward for the adoption of blockchain technology, as it offers a more user-friendly and accessible way for people to interact with the Ethereum network and other blockchain ecosystems.

However, there are also concerns that the centralized nature of Coinbase could be a potential risk to the security and decentralization of the Base network. Some argue that a decentralized solution would be preferable to a centralized one, as it would be more resilient to attacks and censorship.

Despite these concerns, Coinbase remains optimistic about the future of Base and its potential to revolutionize the way people interact with blockchain technology. In a tweet announcing the launch of Base, Coinbase CEO Brian Armstrong said, "We're excited to help bring Layer 2 to the masses with Base. This is just the beginning of a new era for the internet, where people can interact with each other and transact in a decentralized way.