Coinbase, the biggest cryptocurrency exchange in the US, recently announced the launch of Base, an Ethereum Layer 2 (L2) network. The platform aims to offer a safe, cost-effective, and user-friendly means for building decentralized apps, also known as “dapps,” on-chain.
The goal of the network is to onboard a billion users into the world of cryptocurrency by providing an ecosystem that is accessible to developers. However, it will serve as both a platform for Coinbase’s on-chain products and an open environment for developers to build their own solutions.
The Details Of The Coinbase Base Launch
The testnet version of the Ethereum Layer 2 network was unveiled at ETHDenver by Jesse Pollack, Coinbase’s senior director of engineering. Pollack emphasized that Base was designed to be a platform that makes it easy for developers to build apps that users actually want to use.
He also noted that the existing suite of the company’s developer tools would be integrated with Base. Unlike some other L2 networks, Base will not sport its own dedicated token. According to Pollack, “These networks don’t need tokens to be successful.”
However, the new network will be integrated with consumer products from the company, such as Coinbase and its Wallet, and enable developers to access the 100 million-plus users in the Coinbase ecosystem with $100 billion in assets.
Furthermore, Coinbase and its venture arm, Coinbase Ventures, are taking steps to accelerate the growth of the Base platform by establishing the Base Ecosystem Fund.
This fund will provide investment opportunities for companies and organizations that are working to build on the Base platform, thereby fueling innovation and development within the ecosystem.
Pollack believes that Base will attract developers from various platforms and that many will eventually go multichain. He stated:
We expect there’s going to be many of these Layer 2s, and that’s why we’re building based on the OpenStack, that’s open source that anyone can use to run one of these L2s or roll-ups.”
The Base is a secure and scalable platform for decentralized apps that incorporates Ethereum’s security and Coinbase’s expertise. It simplifies dapp development by providing access to Coinbase’s products, users, and tools and enables multichain applications with easy-to-use bridges and gasless transactions.
The platform aims to be decentralized, permissionless, and open to anyone, with the goal of creating a modular Superchain powered by Optimism. It also aims to bring billions of users into the crypto economy by adhering to core principles of interoperability and open-source availability.