Coinbase Announces a New Layer 2 on Ethereum
Coinbase has launched a testnet for Base, a new Ethereum L2 network that aims to introduce web3 to the next billion users.
Introduction
Coinbase has announced the testnet launch of Base, an Ethereum Layer 2 network designed to bring the next billion users to web3. The platform promises to offer a secure, low-cost, and developer-friendly way for anyone to build decentralized applications (dapps) on-chain.
Base is positioning itself as a home for Coinbase's on-chain products and an open ecosystem where anyone can build. By incubating Base inside Coinbase, the company is leveraging its decade-long experience in building crypto products. However, this also raises concerns about centralization and control, as Coinbase could influence the platform's governance and decision-making.
Features
Despite these concerns, Base offers several advantages for developers and users. It 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. It also makes it easy to build decentralized apps with access to Coinbase's products, users, and tools.
The core principles of Base are to be decentralized, permissionless, and open to anyone with the vision of creating a standard, modular, rollup agnostic Superchain powered by Optimism. This can help the cryptoeconomy scale and build a thriving community of other developers. Nevertheless, it remains to be seen how the platform will evolve over time and how it will be governed to ensure that it remains decentralized and open.
EVM equivalence
Base offers full EVM equivalence at a fraction of the cost, which can help reduce gas fees and improve scalability. Additionally, the platform is committed to pushing forward the developer platform, with features such as easy developer APIs for account abstraction and secure multichain application building with easy-to-use bridges.
Following the announcement, Optimism’s token OP increased by 7%.
DevelopersÂ
Base developers can build on the platform today using the RPC testnet endpoint or node providers like QuickNode, Infura, and Blockdaemon. Coinbase plans to progressively decentralize the chain over time, with no plans to issue a new network token. The company is also announcing the Base Ecosystem Fund, which invests in and supports early-stage projects building on Base that meet their investment criteria.
Conclusion
Base is a promising platform that offers many advantages for developers and users. While concerns about centralization and control persist, it remains to be seen how the platform will evolve over time and whether it will achieve its goal of onboarding the next billion users to web3.