Skip to content

Meet 'Base', Coinbase's Ether Level 2 Scaling Solution Which Has No Native Token

The system is designed to be friendly to developers. The Ethereum layer-2 scaling solution will initially appear in a testnet mode as per cryptocurrency exchange.

Screengrab of Base Site (1.1)

Base is a low-cost Ethereum layer-2 (L2) scaling solution announced by Coinbase Global Inc. The system is designed to be friendly to developers. The Ethereum layer-2 scaling solution will initially appear in a testnet mode as per the crypto exchange.

Before the introduction of the mainnet, developers are encouraged to begin building on top of the network. Coinbase has stated(1) that the Basic layer-2 network would not have a token for reasons of fees and governance, and there are currently no plans to issue any tokens of this kind.

Coinbase's Ethereum Large-Scale Platform Scaling Solution

Coinbase has stated that all its on-chain products would be routed to the Base network as part of its introductory bundle of services. In addition, Optimist, which has a decade's worth of experience working with blockchain technology, will also be integrated into the Basic layer-2 network as a core developer.

"Base strives to be decentralized, permissionless, and open to everybody to develop a standard, flexible, roll-up agnostic Superchain driven by Optimism.  
According to Coinbase's announcement, "We're joining Optimism as a Core Dev on the source code OP Stack, and we're aiming to foster a growing community of other developers."

With the Coinbase Base L2 network, developers of decentralized applications can access more Web3 users by tapping into other EVM-compatible blockchains, like Bitcoin and Solana. In addition, one of Coinbase's goals is to assist with onboarding over one billion Web3 users through the Base network.

In onboarding scalable decentralized applications (Dapps) onto the Ethereum network, the Base layer-2 network will compete with Polygon (MATIC). Despite this, the Ethereum network, the undisputed ruler of smart contracts ever since it was created, will emerge victorious.

The Future of the Market about Coinbase

Coinbase, the most popular cryptocurrency exchange in the United States, is well aware of the importance of digital assets to that nation's economy.

In addition, federal agencies such as the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Securities and Exchange Commission (SEC) have begun a campaign to rid the cryptocurrency industry of "rogue" businesses.

On the other hand, the exchange has decided to go head to head with the SEC and other agencies by modifying the risk disclosures segment of its website.

The new section states that the exchange may decide not to remove a particular cryptocurrency asset from the Coinbase Spot Market regardless of whether the SEC or the other controller alleges that the cryptocurrency asset is a security.

Coinbase supports trading for six of the nine cryptocurrencies that the SEC said were securities in the previous year. These cryptocurrencies include AMP, RLY, DDX, XYO, LCX, and POWR.

Coinbase's stock price has increased by nearly 76 percent year to date, bringing the company's market capitalization to approximately $13.89 billion. The results of a MarketWatch poll revealed that 28 market experts, on average, gave COIN shares a HOLD recommendation.