Coinbase Launches The New Ethereum L2 Base Network
The Key Points
Coinbase and Base Network aim to attract the next billion people into the crypto economy.
Although Base Network does not plan to issue a network token in the near future, developers can still explore building on Base at Base.org.
Base also joins OP Stack’s research team and declares that a part of the Base transaction fees.
Coinbase launched the Base testnet on February 23rd. This Ethereum Layer 2 network is designed to make it easy for developers to create decentralized, secure applications on-chain. Coinbase and Base Network aim to attract the next billion crypto-economists. Base Network will be the home for products on the Coinbase Chain and an open ecosystem that anyone can create.
Coinbase is currently incubating Base Network internally. This leverages experience building crypto products over a decade and plans to gradually decentralize blockchain over time. Base Network does not plan to issue network tokens at this time, but developers can explore building on Base Network at Base.org.
What is Base Network?
Coinbase hopes to make its Base Network one of the most popular places for developers to create products and services on blockchain. It has the following four characteristics:
Ethereum-based security. Base has the security, scalability, and security required to support decentralized apps. It leverages Ethereum’s underlying security, Coinbase’s best practice, and allows users to confidently use Coinbase, Ethereum L1, or other interoperable Blockchains to deploy to Base Network.
Coinbase Powered: Access to Coinbase’s products and users and tools makes it easy for developers to create decentralized applications. Base Network has access to powerful fiat currency ramps and acquisition tools that allow them to connect with Coinbase products. This allows them to contribute to over 110 million verified users who provide services. They also have access $80 billion in assets on the Coinbase ecosystem platform.
Base is powerful and affordable. It offers full EVM equivalence at an extremely low cost. They are also committed to the advancement of developer platforms. You can use a simple API to set up gas transactions in decentralized applications for account abstraction. Also, you can use bridges to securely create multi-chain applications.
Open source: Base is aiming to create a decentralized, license free “Superchain” with the support of Optimism. It will provide standard, modular, Rollup support. Base Network will be joining Optimism to become a core developer for the open-source OP Stack. It will also work to build a vibrant community of developers.
Base developers can use the Coinbase RPC testingnet endpoint to build on Base.
Why establish Base Network?
Decentralized applications are needed to make it easier, more affordable, and safer to use in order to attract billions of people to the crypto economy. Developers need to be able to create these applications faster. Coinbase adhered to these core principles when building Base Network.
A bridge, not an isle
Base Network can provide easy and secure access to Ethereum L1, L2 blockchains and other L1 ecosystems (such As Solana). Coinbase encourages others to build on Base, which will act as a “bridge”, for users to the crypto-economy. Base allows users to access other on-chain products, making it an easy-to use default on-chain experience. Coinbase products will be able to support as many blockchains in the future as possible, as Base Network is interoperable with other blockchains.
Any underlying software that supports the global cryptocurrency economy should be open-source and freely accessible. Base Network will collaborate with Optimism in order to build on top the MIT-licensed OP Stack. Base Network will be joining the OP Stack as a core development team in order to make it a public product that is available to everyone.
Base will be viewed by Coinbase as an open platform that anyone can use to contribute, fork and extend the crypto economy’s scale. This link will provide more information about Base and Optimism.
If the crypto economy is to be open, global, and accessible to all, decentralization is essential. Coinbase has incubated Base internally, but it is committed to decentralization in the future. Coinbase is expected to bring more resources to OP Stack and Base will be able to upgrade from Rollup Phase 0 in 2023 to Phase 1 in 2023, and then complete Phase 2 by 2024. This link will provide more information about Base’s decentralization approach.
Base’s vision for the future is to create an open ecosystem that is based on Coinbase products and users. This will allow us to collaborate with other communities to make the blockchain ecosystem more sustainable. Coinbase is thrilled to have an amazing community that will make Base a strong ecosystem.
Base ecosystem fund
Coinbase also announced that the Base ecosystem fund was launched. This fund invests in and supports early stage projects based on Base Network, provided they meet Coinbase’s investment criteria.
There will not be any currency issued. A portion of the service fee will go into the OP collective.
The official has stated that Base Network will not issue any coins and will use ETH for the network fee gas. Additionally, a portion of the Base transaction fee (maybe 20%) will flow into OP Collective in future to support the development of OP Stack.
The relationship between Base, Coinbase, ecosystem projects, and ecosystem funds
Base Network is Coinbase’s native blockchain network. It will host all Coinbase’s on-chain products. They were built by Coinbase for Coinbase users. Coinbase will encourage users of the platform to transfer assets to its Base chain. This is an open ecosystem that anyone can build on. This is a great opportunity for developers. Coinbase boasts 100 million+ potential users and an asset portfolio of hundreds of billions of dollar.
Coinbase has announced the first batch partners for Base. There are many projects that we are familiar with such as Chainlink and QuikNode. The official establishment of the Base ecosystem funds will support and invest in early projects that are based on Base.
Why choose OP stack instead?
Coinbase and OP Labs began joint research on EIP-4844, namely proto-dank sharding. This can reduce the transaction fees of L2 networks by between 10 and 100 times. CoinbaseBase Network joined the research team for OP Stack. They stated that a portion of Base transaction fees (maybe 20%) would flow into OP Collective in order to support the development of OP Stack.
Base’s attitude towards centralization?
Coinbase is currently the only sorter on Base L2 network. However, it will eventually be able to move towards a permission-free list of sorters. The pursuit of OP Stack has been the goal of decentralization. The current unique sorter is a temporary compromise. Base and OP Labs will encourage decentralization in a decentralized way.
Account abstraction Smart contract wallet?
Base Network’s official document description mentions that it will be able to perform account abstraction and smart contract wallet functions. Gnosis Safe tweeted that it will work with Base to implement the account abstraction function in order to reach mass adoption by users.
After having understood the key points above, we must now clarify the special significance of an L2 network Base incubated at Coinbase.
Combining technologies like Coinbase Wallet with account abstraction smart wallet, the current userbase of Coinbase will be diverted to Base. This can greatly reduce the barrier for users to understand and promote large-scale adoption and adoption of Web3. You must also know that Coinbase currently has a 100 million+ certified users. Base also stated that it is a “bridge” that allows users to access the encrypted economy.
Coinbase’s user group has been authenticated by real names. Base was previously associated with the mission account. This is similar to Binance’s soul-bound token BAB. Is it possible for more on-chain assets, such as RAW or on-chain credit, to be derived?
It is the pioneer of OP Stack technology stack and is expected to promote Rollup’s narrative and erode Cosmos’ narrative.
Base Network is currently focusing on ensuring that the testnet runs smoothly. In the following weeks, we will share our mainnet roadmap and provide additional resources for developers who are working on Base.
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