Coinbase’s New Blockchain Platform Increases Ethereum Trust
Cryptocurrency exchange Coinbase’s recently launched the layer-2 network, Base, has received a positive response from the Ethereum community. The layer-2 network, powered by Optimism and secured on Ethereum, aims to become a platform for building decentralized applications (DApps) on the blockchain.
While still in the testnet phase, the move has been described by members of the crypto community as a “massive vote of confidence” and a “watershed moment” for Ethereum.
What is Base?
Basen is a new Ethereum Layer 2 (L2) solution created by Coinbase that offers a secure, affordable and developer-friendly platform for building decentralized applications (dApps). It aims to make chain technology available to more than 1 billion users and does not require a new network token since it uses ETH as its native gas token.
Basen is an open source platform that leverages the expertise of Coinbase and the Optimism team to create an interoperable superchain, providing an open ecosystem for anyone to build dApps.
The project was incubated in Coinbase and leverages ten years of experience in the crypto industry. To celebrate the launch, Base has also released a commemorative NFT called “Base, Introduced”, which can be freely minted on OurZora until Sunday at midnight EST. The platform has also opened registration for interested developers to start building on Base.
Anyone interested in learning more about Base can join the Base Overview with Core Contributors event scheduled for 9:30 a.m. PT / 12:30 p.m. ET.
A massive vote of confidence for Ethereum
Bankless Show host Ryan Sean Adams believes Coinbase’s move is “a massive vote of confidence for Ethereum” and could set a precedent for other cryptocurrency companies and financial institutions to use Ethereum as the settlement layer of choice. With Coinbase having 110 million verified users and partnerships with over 245,000 companies in more than 100 countries since its establishment in 2012, the potential to bring new users to Ethereum is significant.
A Watershed Moment in the Ethereum Rollup Ecosystem
Ryan Watkins, the co-founder of crypto-focused hedge fund Syncracy Capital, describes the news as a “watershed moment” in the Ethereum ecosystem. Watkins believes that Coinbase is “probably no one better” positioned than to bring the next 10 million users and institutions to Ethereum.
Centralized layer-2 network issues
Not everyone is bullish, however. Gabriel Shapiro, general counsel for investment firm Delphi Labs, expressed concern that launching a centralized layer-2 network “opens the door” to unwanted SEC scrutiny. Shapiro believes this move could accelerate the SEC’s “secondary market” agenda with blockchain securities.
Despite concerns from some members of the crypto community, the launch of Base has received a positive response overall. Let’s wait and see how the Layer-2 network develops and affects the Ethereum ecosystem
