Digital

Exploring Coinbase’s Ethereum Layer 2 (L2) Blockchain

Picture Source: BeInCrypto

Coinbase’s Base Mainnet is set to launch on August 9, and anticipation is building around this Ethereum Layer 2 (L2) blockchain. Base, which previously launched a testnet in February, aims to be a secure, low-cost, and developer-friendly solution to bring more users to web3. With numerous Ethereum scaling solutions already in the market, what sets Base apart from other L2 networks? Let’s delve into five key features that distinguish Base from its competitors.

Built Using OP Stack:

To develop Base, Coinbase utilized OP Stack, an open-source framework created by the team behind Optimism. OP Stack is favored among L2 developers for deploying optimistic rollups, aligning with the new rollup-centric development era in the Ethereum ecosystem. While Base and Optimism’s Mainnet operate independently, the decision to use OP Stack ensures high interoperability between the two networks. The Base development team has collaborated closely with OP Labs, demonstrating their shared vision for a decentralized and interoperable “Superchain” of L2s.

No Native Token:

Base stands out as it does not have its own dedicated network token, setting it apart from other L2 solutions. This design is possible due to the backing of Coinbase, lending legitimacy to the Base chain. The absence of a native token also aligns with the project’s philosophy of staying as close to Ethereum as possible. Instead of issuing a token, Base relies on support from Coinbase and attracts liquidity from the platform to boost the network.

Designed to House Coinbase Products and Foster Ecosystem Growth:

Initially funded by Coinbase, Base intends to power various products of the exchange. However, the broader vision for Base extends beyond Coinbase’s offerings. Similar to Binance’s BNB chain, which grew independently from its parent company, Base aims to become an open ecosystem attracting other applications. Leveraging Coinbase’s strong brand recognition and vast user base, Base seeks to demonstrate use cases beyond cryptocurrency trading.

Commitment to Decentralization:

While Coinbase’s involvement may raise concerns about centralization, Base has a roadmap to achieve greater decentralization in the future. At present, Coinbase serves as the sole sequencer, validating transactions on the Base network. However, plans are in place to delegate decision-making powers to a “security council” comprising key stakeholders. As the Base ecosystem expands, it will adopt more democratic governance mechanisms to ensure a diverse representation of network participants.

Support for Account Abstraction:

Base introduces support for account abstraction, an essential feature in the Ethereum ecosystem. Account abstraction allows third-party externally owned accounts (EOAs) to execute transactions on behalf of someone else, enabling users to interact with smart contracts without directly owning the underlying accounts. Gelato and Safe collaborated to develop an account abstraction Software Development Kit (SDK) for Base, making it easier for Web3 developers to incorporate this feature into their applications.

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Conclusion:

As the Base Mainnet prepares for launch, excitement is building around this Ethereum Layer 2 blockchain. With its unique features such as leveraging OP Stack, avoiding a native token, fostering an open ecosystem, committing to decentralization, and supporting account abstraction, Base aims to carve its place among the numerous Ethereum scaling solutions. Its success in attracting a broader user base and demonstrating real-world use cases beyond trading will be critical in achieving its vision of bringing the next billion users to web3.

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