Coinbase Decides to Open-Source Smart Contracts on its L2 Blockchain Base

Updated: 20 October 2023

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Coinbase, the largest US crypto exchange, has decided to make some of the smart contracts on its blockchain open-source.

In addition to smart contracts, the exchange also open-sourced Base blockchain’s frontend, as it shared in its announcement. The move came soon after the exchange’s Layer-2 blockchain became the third-largest L2 chain in the cryptocurrency ecosystem.

Benefits of Going Open-Source

Coinbase announced the move this Thursday, October 19, citing reasons such as increased transparency and accountability.

According to the company, increased transparency is also expected to serve as a catalyst for collaboration, allowing developers and other firms to draw from its knowledge base, and build better solutions by using Coinbase’s technology as a base.

Furthermore, if partners and devs can refine what is already in place, this will only improve Coinbase’s solutions.

The exchange also intends to use open-sourcing as a way to receive community feedback. From there, it intends to improve the documentation within its ecosystem.

Also, if someone happens to spot and report bugs that the exchange, auditors, and others who worked on the code may have overlooked, that would improve the platform’s position in the industry.

Open source is a win-win: Builders get access to knowledge, can improve on what’s already been done, and in turn inspire others

Through collaboration and transparency, we can accomplish the vision of bringing the next billion people onchain

— Base 🛡️ (@base) October 19, 2023

In the statement, the exchange said:

We’ve open-sourced our smart contract repos to provide developers with increased transparency around Base’s contract development, deployment, and upgrade process.

Base Scripts and Contracts are Now on GitHub

The contracts and scripts for Base are already available to the public and can be found on GitHub. The exchange noted that this is only the next step in increasing transparency regarding its services.

Earlier this year, it shared details of its multisig and challenger key setup. It also teamed up with Optimism to make sure that its upgrade process is thoroughly documented and properly reviewed.

One of Base’s core values is building in the open

We believe this is foundational to building an onchain ecosystem, creating accountability, and enabling collaboration

In this spirit, we’ve open sourced our smart contract and GitHub reposhttps://t.co/UOgGpNXyFL

— Base 🛡️ (@base) October 19, 2023

The platform believes that moves like these will reduce the likelihood of having an error and that it would make any potential malicious activities publicly visible. As such, they would also be easier to detect and defend against.

Given that it is an L2 chain with a TVL of $549 million, Base is now officially the third-largest layer-2 in the industry. The two above Base are Arbitrum One and Optimism, which hold a combined market share of 80%. Meanwhile, Base’s market share is only 5.26% as of right now.

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