BASE, Coinbase Layer 2 Network: What You Need to Know

If you are interested in crypto and blockchain, you have probably heard of Coinbase, the largest publicly traded U.S. crypto exchange. But did you know that Coinbase is also building its own Ethereum layer 2 network called Base? In this article, we will explain what Base is, how it works, and why it matters for the future of crypto.

What is Base?

Base is a secure, low-cost, and developer-friendly Ethereum layer 2 (L2) network that aims to bring the next billion users to web3. Web3 is the term used to describe the decentralized web, where applications are built on top of blockchain protocols like Ethereum.

Base leverages the underlying security of Ethereum, along with Coinbase's best practices, to enable users to confidently onramp into Base from Coinbase, Ethereum L1, and other interoperable chains. Base also offers full EVM (Ethereum Virtual Machine) equivalence, which means that any smart contract or dapp that runs on Ethereum can also run on Base without any modification.

Base is designed to be both a home for Coinbase's on-chain products and an open ecosystem where anyone can build. Coinbase has no plans to issue a new network token for Base, and intends to progressively decentralize the chain over time. Developers can get started building on Base today at base.org.

How does Base work?

Base is built on Optimism's OP Stack, an open-source framework for creating scalable and interoperable L2 networks. Optimism is one of the leading L2 scaling solutions for Ethereum, and the second largest L2 ecosystem behind Arbitrum.

Optimism uses a technique called optimistic rollups, which allows transactions to be executed on L2 first and then verified on L1 later. This reduces the congestion and cost of transactions on Ethereum, while preserving its security and decentralization.

Base is one of the many chains that can be built using the OP Stack, which allows them to share the same underlying security and have a common communication layer. This means that Base can easily interact with other OP Stack chains, as well as other L1 ecosystems like Solana or Polygon.

Coinbase has also joined Optimism as a core developer on the OP Stack, and is working to create a thriving community of other developers. Together, they are designing and building a protocol that can sequence multiple L2s, while providing interoperability and composability between them.

Why does Base matter?

Base matters because it has the potential to bring millions of new users and developers to the crypto space. By leveraging Coinbase' s existing products, users, and tools, Base can offer a seamless and user-friendly experience for anyone who wants to access web3 applications.

Some of the benefits of Base include:

• Low-cost transactions: Base offers fast and cheap transactions that are compatible with Ethereum. Users can enjoy gasless transactions with easy developer APIs for account abstraction.
• Easy fiat onramps: Base makes it easy to convert fiat currency into crypto and vice versa. Users can use Coinbase’s products like Coinbase Card or Coinbase Wallet to access Base directly.
• Powerful acquisition tools: Base helps developers reach a large and engaged audience of crypto enthusiasts. Users can discover new dapps through Coinbase’s platforms like Coinbase Earn or Coinbase Ventures.
• Open source: Base aims to be decentralized, permissionless, and open to anyone with the vision of creating a standard, modular, rollup agnostic Superchain powered by Optimism. Anyone can contribute to the development of Base and its ecosystem.

Conclusion

Base is an exciting new project that combines the best of both worlds: the security and scalability of Ethereum, and the user-friendliness and reach of Coinbase. By building on Optimism’s OP Stack, Base also offers interoperability and composability with other L2 networks and L1 ecosystems.

If you are curious about Base and want to learn more, you can visit base.org or follow their Twitter account @basechain. You can also check out some of the dapps that are already building on Base, such as Aave, Compound, Sushiswap, Uniswap, Friend.tech, and BaseSwap.

Base is not just another L2 network. It is a bridge that connects users from all over the world to the decentralized web. It is a platform that empowers developers to create innovative and impactful dapps. It is a vision that aims to make on-chain the next online and onboard 1B+ users into the cryptoeconomy.

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