Coinbase's Brainchild: The Rise of Base Chain in the Ethereum Layer 2 Arena

Coinbase’s Brainchild: The Rise of Base Chain in the Ethereum Layer 2 Arena

Updated: 17 April 2024

Disclosure

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Join Our Telegram channel to stay up to date on breaking news coverage

Coinbase’s brainchild, the Ethereum Layer 2 network called Base, has made an impressive leap this week. This platform surpassed both Arbitrum and Optimism, other front runners in the Optimistic Rollup scaling solutions, when it came to daily transaction averages.

Delving into the numbers, Base recorded an average of 610,000 transactions on its seven-day moving scale by Aug. 15. This statistic was notably higher than the 597,000 by Optimism and Arbitrum’s 576,000, though this lead did witness a slight decline.

Base Now Ranks 4th in Daily TPS Among Layer 2 Solutions 🔵#Base Layer 2 launched its mainnet yesterday and is showing robust growth in active users and transactions. Now it ranks 4th by daily TPS (Transaction per second). pic.twitter.com/pnYF0tk7b0

— CryptoRank.io (@CryptoRank_io) August 10, 2023

A significant drive behind Base’s surge was the rapid influx of active users post its public mainnet unveiling. A staggering 100,000 users jumped on board in merely a day, a momentum propelled by the support from the social platform, friend.tech.

Diving into the Base Network Experience

Constructed with the expertise of Coinbase, Base is a unique Ethereum Layer 2 (L2) chain aimed at supporting secure, affordable, and developer-friendly on-chain projects.

According to the Ethereum Foundation’s description of the concept:

Layer 2 (L2) is a collective term to describe a specific set of Ethereum scaling solutions. A layer 2 is a separate blockchain that extends Ethereum and inherits the security guarantees of Ethereum.

While it finds its foundational tech in the OP Stack, developed in collaboration with Optimism, Base epitomizes Coinbase’s ambition to merge cutting-edge innovation with its rich legacy in the cryptocurrency realm. Currently, Base’s nurturing within the Coinbase environment is directed by a thought-out progression towards decentralization. Yet, interestingly, there’s no intention of rolling out a distinct network token.

One of Base’s standout features is its potential to harness Ethereum’s established security and scalability. This positions it as a formidable cornerstone for building decentralized apps (dapps) that promise steadfast reliability. The combination of Base with Coinbase’s industry knowledge grants developers a streamlined pathway to product integration, elevated user interaction, and seamless transitions to fiat currency. In turn, this connection unlocks a sizable user demographic and massive assets, all encapsulated within the Coinbase space.

Furthermore, Base’s alignment with the Ethereum Virtual Machine (EVM) and its underlying financial and functional architecture makes it a hotspot for pioneering dapp creativity. With a core belief in transparency and inclusivity, Base’s vision is to evolve into a decentralized platform that’s comprehensive in its approach. The ultimate dream? To pave the way for a versatile Superchain that’s both standard in its operations and free from any rollup-centric preferences, all under the protective umbrella of the Optimism crypto initiative.

Asset Values and dApps: A Significant Difference

For the initial six days post-launch, Base stood atop in terms of new unique daily addresses and profit margins. However, as is the nature of most tech launches, the initial excitement simmered down a bit. By Aug. 17, the network generated 24,000 new addresses, while Optimism and Arbitrum recorded 32,000 and 29,000 respectively.

Yet, when we shift the lens to assets’ value, Base still has some ground to cover. Both Arbitrum and Optimism tower with assets valued at $4.2 billion and $1.4 billion, respectively. In contrast, Base, despite its recent launch, boasts a respectable $244 million.

Highlighting its features, Base was made available to the general populace on Aug. 9. This platform showcases a diverse range of over 100 dapps and service providers, with industry giants like Uniswap, SushiSwap, and Compound pioneering the network’s offerings. Its foundation, laid on the OP Stack from Optimism, ensures transactions are not just swifter but also light on the pocket compared to its Ethereum counterpart.

To mark its public launch, Base initiated the “Onchain Summer” campaign. This initiative spotlights a curated selection of onchain music, art, and gaming projects, all underlining the Layer 2 chain’s efficacy and affordability. Notably, Coca-Cola’s intriguing NFT “Masterpiece” collection has merged classic artworks, such as Edvard Munch’s “The Scream”, with its iconic bottle. Additionally, collaborations with the mysterious crypto figure, Cozomo de’ Medici, gave rise to NFTs themed “New Era ETH” and “New Era BTC” under the banner of Friends With Benefits. This vibrant event culminates on Aug. 30.

Will Base uphold this momentum in the forthcoming months? The crypto community watches with bated breath.