Coinbase Launches An Ethereum L2 Network For Decentralized Apps

Updated: 24 February 2023

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, one of the largest crypto exchanges globally, announces the launch of an Ethereum Layer-2 Network, Base.

What- Coinbase launches its Ethereum Layer- 2 blockchains for Decentralized Apps.
Why- The Network is designed to be a bridge to the cryptocurrency user
What Next- The platform is providing a roadmap to mainnet and more developers’ resources for building on Base in a few weeks.

On February 23, the crypto exchange revealed the launch of Base, an Ethereum layer-2 blockchain. According to the platform, Base will offer a secure, low-cost, developer-friendly environment for building decentralized applications (DApps) on the network. As per the exchange, the new network aims to onboard billions of users to the crypto space by providing an ecosystem that is accessible to developers. It would provide access to Coinbase’s products, users, tools, easy fiat on-ramps and powerful acquisition tools.

1/ 🔵 We’re excited to announce @BuildOnBase.

Base is an Ethereum L2 that offers a secure, low-cost, developer-friendly way for anyone, anywhere, to build decentralized apps.

Our goal with Base is to make onchain the next online and onboard 1B+ users into the cryptoeconomy. pic.twitter.com/RmwZFJzGGs

— Coinbase 🛡️ (@coinbase) February 23, 2023

The Base is built on the “OP Stack” used by Optimism. However, the platform has released a detailed plan on how the network will decentralize over time, although it has started off highly centralized. Additionally, Base will be fully open source and freely available.

Coinbase and Optimism ecosystem

The co-founder of Quicknode, which is a partner and node provider for Base, Dmitry Shklovsky, asserted:

Optimism is not a competitor to (Base), but rather a collaborator.

In the announcement, the platform noted no plans to issue new tokens. However, Coinbase will continue to blend as an exchange with other networks. On the other hand, in Coinbase’s revealed decentralized plan, Coinbase noted working with Op Labs and the Optimism Collective. The platforms are working to decentralize the Optimism ecosystem by creating a “Superchain” connecting networks built on the OP stack.

Citing Vitalik Buterin’s post on the decentralization of rollups, Coinbase stipulates that the current version of Optimism is a” Stage 0 rollup.” However, Coinbase has asserted that by the end of 2023, it plans to progress Base to “Stage 1.”